Aledade achieved unicorn status through a $260 million funding round, which the company says it will use to grow its network of independent clinicians as well as invest in technology. and service.
The Series F round values the company at $3.5 billion, according to Bloomberg. New investor Lightspeed Venture Partners led the round, with participation from existing investors Venrock, Avidity Partners, OMERS Growth Equity and Fidelity Management & Research Company. The $260 million reflects one of the biggest cash flows of the year in a challenging economic environment for digital health companies.
CEO and co-founder Dr Farzad Mostashari said the company plans to invest the money in new clinical and artificial intelligence capabilities. Aledade also aims to expand its network of insurance partners.
“We are growing our practice population very quickly, and each one of those practices serves patients from a variety of health plans,” says Mostashari.
Aledade has raised $677.9 million since it was founded in 2014, according to Modern Healthcare data. Physician-assisted companies are not exciting acquisitions, Mostashari said.
The company helps independent clinicians share patient risks with payers, cutting into the savings it helps doctors and insurers achieve. Aledade generated $475 million in revenue last year, up more than 50% from 2021, according to a news release the company released Wednesday.
Aledade says it has more than 150 value-based policies with insurers and providers for more than 2 million patients enrolled in Medicare Shared Savings Plans, Medicare Advantage plans, and other forms of insurance. other responsible care. Its network includes more than 1,500 primary care practices.
In March, the company signed a 10-year contract to manage Medicare Advantage members for Humana and extended the contract with Cigna to three new states. Aledade also has a value-based care agreement with Elevance Health, which administers Blue Cross Blue Shield plans in 14 states.
The Series F investment comes as the company expands its leadership team and board of directors.
Former Optum and UnitedHealthcare chief executive Dr Efrem Castillo has been named senior vice president of Medicare Advantage, while former Commonwealth Fund President, Dr David Blumenthal and Shutterstock CEO, Paul Hennessy has joined Aledade’s board, the company said.
