BETHESDA, MD, Aledade, a national leader in value-based care, today announced it raised an additional $20 million in funding.
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This funding will accelerate Aledade's efforts to grow its provider network and expand partnerships with commercial and Medicare Advantage health plans. The round is led by Biomatics Capital, with participation from new investors including GV (formerly Google Ventures) and the Maryland Venture Fund, and existing investors Venrock and ARCH Venture Partners.
Aledade's Accountable Care Organizations (ACOs) are at the forefront of the shift to value-based reimbursement across both public and private payer health care markets. After doubling last year, the Aledade ACO network now includes more than 200 independent, physician-led practices across 15 states that together represent more than 240,000 covered lives and $2 billion in health care spending. In addition to its work with the Medicare Shared Saving Program (MSSP), Aledade has expanded its payment contracts with commercial payers (such as Blue Cross Blue Shield of Kansas and Highmark Blue Cross Blue Shield) and public payers (such as the West Virginia Public Employees Insurance Agency).
'Aledade is about providers taking the lead on delivering better care at lower cost, and this funding round is an emphatic statement that we are more than just Medicare Shared Savings Program ACOs. In the last six months alone, we have gone from zero to 100,000 commercially insured patients in our network,' said Dr. Farzad Mostashari, CEO and co-founder of Aledade. 'With this new funding, we will push ahead to bring the Aledade model of care to all patient and payer populations across the health care system, including Medicare Advantage.'
Founded in 2014, Aledade offers a new model of primary care by partnering with physicians to build and lead ACOs - networks of physicians who band together to deliver coordinated care to patients. Aledade operates under a value-based payment structure that rewards positive health outcomes for patients, instead of the volume of health care services delivered. Aledade ACOs allow doctors to stay independent, practice medicine like they've always wanted to, and thrive by keeping people healthy. By expanding the range of payers it works with, Aledade will be opening the door for thousands of small and solo practices to establish value-based contracts with some of the largest payers in the health care system, creating a huge opportunity for Aledade partner physicians.
'Aledade is leading the way in the shift to value-based healthcare: they have figured out how to use technology effectively to create value for physicians and patients, they have proven they can scale rapidly, and they are best-in-class at navigating a complicated regulatory environment,' said Julie Sunderland, Co-Founder of Biomatics Capital, who will also join Aledade's Board of Directors.
'Aledade's platform empowers providers to succeed in the new value-based health care market,' said Krishna Yeshwant, General Partner at GV. 'The company's physician-led model will become even more valuable as commercial payers continue to implement new payment models, and we're impressed with Aledade's continued growth under the leadership of Dr. Farzad Mostashari.'
Aledade's recent growth was driven by its expansion beyond Medicare MSSP ACOs to commercial value-based contracts with private health plans and a state employee health plan. With this $20 million Series B1 round, Aledade has raised a total $54.5 million in funding. Now, Aledade will continue to grow and diversify its business by forging partnerships with Medicare Advantage health plans and Medicaid payers.
'There is a fundamental shift occurring in health care, from fee-for-service to payment based on keeping patients healthy,' said Andy Jones, Managing Director at the Maryland Venture Fund. 'We invest in exceptional entrepreneurs and believe that Aledade, led by Dr. Mostashari, is well positioned to execute on this opportunity.'
Aledade provides primary care physicians with unparalleled regulatory expertise; best practices from a national network of more than 1,000 primary care doctors; user-friendly technology and data analytics that provide insight into the full spectrum of care patients receive; and face-to-face practice transformation support.
Aledade has improved the quality of care for the individuals covered by Aledade's practices. In 2015, Aledade ACOs increased preventive care visits by an average of 251 percent and increased transitional care services by an average of 175 percent, and saw a decrease in emergency department visits, hospital utilization, and hospital readmission rates. At the same time, Aledade supported small practices by generating a $51,000 average increase in practice revenue.
Founded in 2014, Aledade offers a new model of primary care that puts physicians back where they should be: quarterbacking their patients' health care. Aledade partners with primary care physicians to build and lead Accountable Care Organizations (ACOs) that allow these doctors to stay independent, practice medicine like they've always wanted to, and thrive financially by keeping people healthy. Aledade provides data analytics and user-friendly technology to help doctors provide more seamless care, unparalleled regulatory expertise, the best practices shared by a national network of hundreds of doctors, and face-to-face practice transformation support. Based in Bethesda, Md., Aledade is led by CEO and Co-founder Dr. Farzad Mostashari, former National Coordinator for Health Information Technology at the U.S. Department of Health and Human Services. Since its founding in 2014, Aledade has established successful organizations in New York, Delaware, Maryland, Arkansas, West Virginia, Tennessee, Mississippi, Florida, Louisiana, Virginia, Kansas, Michigan, Utah, Missouri, and Pennsylvania that care for more than 240,000 patients.
At the heart of the Aledade model is the simple, but radical, idea that Aledade only succeeds when partner practices succeed in delivering better care at a lower cost. For more information, visit www.aledade.com. Aledade is a registered trademark of Aledade, Inc.