Aledade, a company partnering with primary care physicians to build and manage accountable care organizations through technology, closed a $100 million Series D funding round.
Meritech Capital led the round, with participation from Tiger Global Management and Institutional Venture Partner (IVP), and OMERS Growth Equity.
Aledade has raised more than $250 million to date. Last year, the company secured $64 million in a Series C funding round. The company’s existing strategic investors include Meritech Capital, Echo Health Ventures, CVF, and GV (Google Ventures).
The company plans to use the latest funds to expand its value-based care model with health plans across the country, focusing on growing its strategic partnerships with Medicare Advantage plans to improve outcomes and quality for more seniors.
The company says independent primary care providers are increasingly joining accountable care organizations (ACOs) to deliver high-quality care for patients and support long-term financial sustainability for their practices.
Aledade offers access to data analytics, guided workflows, regulatory expertise, payer relationships, and local support from attentive experts for primary care providers.
Aledade’s Accountable Care Organization network covers more than 1 million patients across 800 independent primary care practices in 31 states. Through this network of independent practices, Aledade manages roughly $12 billion in health care spending through 35 Medicare and 51 other value-based contracts, and Aledade ACOs care for nearly 1.2 million patients, according to the company.
“Working in partnership with hundreds of amazing primary care practices, Aledade ACOs have helped achieve better health outcomes for more than a million patients through risk-taking contracts across all types of payers, with remarkable growth in Medicare Advantage,” said Farzad Mostashari, MD, CEO, and co-founder of Aledade.
“This impressive show of support from investors proves that value-based care led by independent primary care, embracing risk, is the right path forward for American health care. We are thrilled to put these resources to work by helping more primary care professionals enter risk-taking arrangements with all kinds of payers, reinforcing our tech platform in the face of nationwide growth, and launching innovative projects to improve the health of patients across the country.”
In 2020, Digital Health companies raised $14.8 billion, a 66% increase compared to $8.9 billion in 2019, according to the latest Mercom Digital Health Funding report.