Aledade raises $20M in recent round of funding
Aledade has secured a total of $55 million in funding with investments from the recent Series B1 round of funding, the company announced Tuesday.
Biomatics Capital led the most recent round of funding with participation from new investors GV (formerly Google Ventures) and the Maryland Venture Fund, as well as existing investors Venrock and ARCH Venture Partners.
- Aledade, which operates a network of accountable care organizations (ACO) that includes more than 200 practices across 15 states, has expanded quickly since it was founded in 2014.
It appears investors believe in the Aledade model. Aledade, the company that former National Coordinator for Health IT Dr. Farzad Mostashari co-founded, is “well-positioned” in a healthcare system that is increasingly rewarding physicians for providing high-value care, according to Andy Jones, managing director for the Maryland Venture Fund.
Aledade uses a technology-based platform that allows primary care practices to participate in ACOs while maintaining independence. Aledade began its work with the Medicare Shared Saving Program, but has since partnered with private payers and the number of its commercially-covered patients grew to 100,000 in the last half of 2016. Recent funding will help the company to expand partnerships with private payers.
ACOs have saved Medicare more than $1.29 billion since 2012. Based on the early success, CMS has tweaked the model and developed plans to launch a new ACO pilot program, Bloomberg BNA reported. However, these efforts could be derailed if healthcare reform set to occur in the near future makes changes to Medicare or Medicaid.
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