Dive Brief:
- Bethesda, MD-based Aledade Inc. has raised $30 million in a Series B fundraising, led by investor ARCH Venture Partners.
- Founded by former National Coordinator for Health Information Technology Farzad Mostashari, MD, Aledade provides data analytics software and consulting to help physician-run ACOs provide preventative healthcare. It generates revenue by taking a percentage of savings generated by the ACO.
- The newly-acquired funding will be applied to helping physician practices expand their patient base to privately-insured populations.
Dive Insight:
Investors love health IT these days—and a company spearheaded by the charismatic former head of ONC is an attractive opportunity. There are now Aledade-created ACOs in four states with services provided to 25,000 Medicare beneficiaries. The company plans to expand into nine states and provide care to 75,000 by the end of this year.
This round of funding follows on the heels of another IT coup. Evolent Health, a software and health consulting company co-founded in 2011 by UPMC Health Plan and The Advisory Board Committee, saw its stock reach $18.86 per share on its first day of trading—for a total of $195.5 million.