Aledade, a Bethesda, Maryland-based provider of data analytics and user-friendly technology for doctors, raised $20m in Series B1 funding.
The round was led by Biomatics Capital, with participation from new investors including GV (formerly Google Ventures) and the Maryland Venture Fund, and existing investors Venrock and ARCH Venture Partners. In conjunction with the funding, Julie Sunderland, Co-Founder of Biomatics Capital, will join Aledade’s Board of Directors.
The company, which has raised a total $54.5m in funding, intends to use the capital to accelerate efforts to grow its provider network and expand partnerships with commercial and Medicare Advantage health plans.
Founded in 2014 by Dr. Farzad Mostashari, CEO and co-founder, Aledade offers a new model of primary care by partnering with physicians to build and lead ACOs – networks of physicians who band together to deliver coordinated care to patients. The company, which also and provides data analytics and user-friendly technology to help doctors provide more care, regulatory expertise, the best practices shared by a national network of hundreds of doctors, and face-to-face practice transformation support, operates under a value-based payment structure that rewards positive health outcomes for patients, instead of the volume of health care services delivered. By expanding the range of payers it works with, Aledade will be opening new opportunities for small and solo practices to establish value-based contracts with large payers in the health care system,.
The Aledade ACO network now includes more than 200 independent, physician-led practices across 15 states that together represent more than 240,000 covered people and $2 billion in health care spending. In addition to its work with the Medicare Shared Saving Program (MSSP), the company has expanded its payment contracts with commercial payers (such as Blue Cross Blue Shield of Kansas and Highmark Blue Cross Blue Shield) and public payers (such as the West Virginia Public Employees Insurance Agency).