Bethesda, Maryland-based Aledade, which partners with primary care physicians to create tech-enabled accountable care organizations, has raised $20 million in a round led by Biomatics Capital, GV and Maryland Venture Fund. Existing investors Venrock and ARCH Venture Partners also contributed to the round. This brings the company’s total funding to $54.5 million.
The funding, which was announced during the JP Morgan Conference in San Francisco this week, will be used to grow Aledade’s provider network and secure new partnerships both with Medicare Advantage and commercial health plans. Aledade’s network includes over 200 independent, physician-led practices across 15 states, comprising some 240,000 covered lives. The growth was attributed to Aledade’s expansion beyond Medicare Shared Savings Program contracts into contracts with major payers like Blue Cross Blue Shield of Kansas and High Mark Blue Cross Blue Shield, the company said.
Mostashari said the funding should send a clear statement that Aledade is for more ACOs than those operating under Medicare Shared Savings Programs. In 2015, the company’s network of ACOs were able to increase preventive care visits by an average of 251 percent and increased transitional care services by an average of 174 percent. It also helped small practices increase their revenue by an average of $51,000.
“In the last six months alone, we have gone from zero to 100,000 commercially insured patients in our network,” Dr. Farzad Mostashari, CEO and co-founder of Aledade, said in a statement. “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.”
The company, which was founded in 2014, operates under a value-based payment structure, allowing doctors to stay independent. The platform provides primary care physicians with regulatory expertise, health IT, data analytics and a network of over 1,000 primary care doctors.
“Aledade’s platform empowers providers to succeed in the new value-based health care market,” Krishna Yeshwant, General Partner at GV said in a statement. “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.”