What You Should Know:
– Aledade raises $100 Million in Series D funding to help more primary care practices thrive in value-based care.
– The new funding will power the growth of a nationwide network of more than one million patients by further expanding into Medicare Advantage Contracts.
Aledade, a Bethesda, MD-based provider of value-based primary care, today announced it has closed a $100 million Series D funding round following a year of significant growth for its national network of risk-taking primary care practices. Returning investor Meritech Capital led the round, which included new growth investors Tiger Global Management and IVP, and returning investor OMERS Growth Equity. The latest round of funding brings the company’s valuation to over $2.1 billion dollars.
Delivering Value-Based Primary Care
Founded in 2014 by former National Coordinator for Health IT, Farzad Mostashari, Aledade began building ACO networks for independent physicians through the Medicare Shared Savings Program, but now also partners with commercial payers across the country. Aledade now partners with nearly 800 independent primary care practices, including more than 100 federally-qualified health centers, comprising more than 7,800 providers in 31 states. Through this nationwide network of independent practices, Aledade practices manage roughly $12 billion in health care spending through 35 Medicare and 51 other value-based contracts and care for nearly 1.2 million patients.
Why It Matters
As the healthcare system continues to be strained by the COVID-19 pandemic, these value-based practices are keeping patients healthy, at home, and out of the hospital with proactive, coordinated primary care. Aledade technology helps practices identify and better manage their most at-risk patients. Patients of practices engaged with Aledade have fewer emergency department visits, inpatient stays and readmissions; in the most recent year with public results from the Medicare Shared Savings Program, Aledade practices reduced hospital stays by an average of 9 percent, avoiding more than 10,000 unnecessary hospitalizations.
Aledade’s growth has been driven by the success of its physician-led model, in which the company shares in the risk and reward of both government and commercial value-based contracts with participating independent practices. Aledade practices have improved the quality of care and health outcomes while controlling costs in all types of public and private payer contracts. To date, Aledade’s participating practices have received more than $115 million in shared savings revenue.
Funding Will Support Strategic Partnerships with Medicare Advantage Plans
Aledade will use this infusion of capital to expand its value-based care model with health plans across the country, with a particular focus on growing its strategic partnerships with Medicare Advantage (MA) plans to improve outcomes and quality for more seniors. Already, Aledade works with all of the largest MA payers and multiple Blue Cross plans to give Aledade practices access to Medicare Advantage value-based contracts. In 2020, Aledade more than doubled the number of patients served in these MA contracts, bringing the total to about 100,000.
As the company expands into more MA plan partnerships and welcomes more practices to its national network of ACOs, Aledade will continue to invest heavily in its cutting-edge technology platform to ensure primary care physicians have a world-class operating system for population health. Aledade also plans to launch several initiatives in 2021 to extend this platform.
These include initiatives to extend the use of integrated telehealth, predict and prevent the occurrence of unplanned dialysis, reduce racial disparities in hypertension control, and enable even the smallest primary care practices in the country to join value-based contracts with Aledade.