Aledade, the startup former national coordinator Farzad Mostashari, MD, launched in June 2014 has raised $20 million in funding.
Bethesda, Md.-based Aledade works with the Medicare Shared Saving Program, and it has expanded its payment contracts with commercial payers, such as Blue Cross Blue Shield of Kansas and Highmark Blue Cross Blue Shield, and also public payers, such as the West Virginia Public Employees Insurance Agency.
Aledade plans to use the investment to expand its provider network and grow partnerships with commercial and Medicare Advantage health plans.
“This funding round is an emphatic statement that we are more than just Medicare Shared Savings Program ACOs,” Mostashari said in a statement. “In the last six months alone, we have gone from zero to 100,000 commercially insured patients in our network. With this new funding, we will push ahead to bring the Aledade model of care to all patient and payer populations across the healthcare system, including Medicare Advantage.”
Aledade partners with physicians to build and lead ACOs – networks of physicians who band together to deliver coordinated care to patients. The company operates under a value-based payment structure that rewards positive health outcomes for patients, instead of fee-for-services rendered.
By expanding the range of payers it works with, Aledade will be opening the door for thousands of small and solo practices to establish value-based contracts with some of the largest payers in the healthcare system, creating a huge opportunity for Aledade partner physicians, the company said.
With this latest round, Aledade has raised a total $55 million in funding.
This most recent round of funding 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.