Company adds two board members and a senior executive to lead its Medicare Advantage business
Bethesda, Md. – June 21, 2023 – Aledade, the largest network of independent primary care practices in the country, today announced the closing of a $260 million Series F funding round to enhance and acquire services and technology to support its practices. The round was led by new investor Lightspeed Venture Partners, with participation from Venrock, Avidity Partners, OMERS Growth Equity, and Fidelity Management & Research Company.
The funds raised in this financing will be used to further accelerate the growth of Aledade’s primary care network and strategic alliances with national and regional health plans, while continuing to enhance the technology and support the company provides to its partner practices and their patients.
“After a decade of experience with different value-based models, it’s clear what works – giving primary care accountability for the total cost and quality of care. We founded Aledade in 2014 on the premise that we can scale the success of value-based primary care,” said Farzad Mostashari, MD, CEO and co-founder of Aledade. “With this financing, we can be opportunistic in identifying and acquiring additional capabilities into the Aledade platform that will enable the largest network of independent primary care in the country to consistently drive the best results in value-based care.”
“We are thrilled to support Aledade in their mission to deliver on the promise of value-based care and fundamentally reshape the American health care system for the better,” said Galym Imanbayev, MD, Partner at Lightspeed Venture Partners. “Aledade unlocks the unique power of independent primary care practices and health centers to improve health outcomes for patients and eliminate wasteful downstream costs – all while doing so at scale with tremendous growth ahead.”
By focusing on its mission and developing a model that succeeds only when practices succeed, Aledade has built the largest network of independent primary care practices in the U.S. with more than 1,500 independent primary care practices in 2023 spread across 45 states and the District of Columbia. Aledade’s more than 150 value-based care contracts collectively cover more than two million patients and more than $20 billion in total health care spending. Aledade now serves more than one million patients under the Medicare Shared Savings Program and nearly 250,000 patients under Medicare Advantage contracts with national and regional health plan partners.
Aledade generated revenue of more than $475 million for 2022, representing more than 50 percent growth compared with revenue in 2021. This growth translates directly to increased payments to the practices that were part of the Aledade network in 2022. To date through 2022, Aledade and its primary care partners have saved the U.S. health care system more than $1.7 billion.
Additionally, Aledade has welcomed two new members of its Board of Directors and a leader of its team optimizing quality and shared savings performance under value-based contracts with Medicare Advantage plans.
- Dr. David Blumenthal, M.D., M.P.P. was a practicing primary care physician for more than 30 years. Most recently, he served as the president of the Commonwealth Fund, a national philanthropy engaged in independent research on health and social policy issues. Previously, he was the Samuel O. Thier Professor of Medicine at Harvard Medical School, and chief health information and innovation officer at Partners Healthcare System in Boston (now Mass General Brigham). He also served as the United States’ National Coordinator for Health Information Technology from 2009 to 2011.
- Paul Hennessy is the CEO of Shutterstock. Prior to that, Paul served 7 years on the Shutterstock board of directors. He previously served as CEO and a member of the board of directors of Vroom, Inc., and before that as CEO of priceline.com. From 2011 to 2015, Paul served as chief marketing officer of Booking.com.
- Dr. Efrem Castillo joins Aledade as senior vice president for Medicare Advantage. Before joining Aledade, he was a senior vice president of clinical transformation at Optum. Prior to Optum, he was chief medical officer at United Healthcare Medicare Solutions. Earlier in his career, he was a physician-owner of Castillo Medical Group in San Antonio, Texas.
“Our north star at Aledade is to do the right thing for patients, practices, and society. David Blumenthal is uniquely suited to help me and the rest of our Board maintain that course over the long-term. We are also extremely fortunate to welcome Paul Hennessy to the Board. His experiences leading fast-growing, publicly-held, technology-based businesses make Paul an ideal board member for the next phase of Aledade’s growth,” said Dr. Mostashari. “I am also pleased to have Efrem Castillo join the senior leadership team at Aledade. Our Medicare Advantage business has continued to grow rapidly and Efrem is a proven leader with the experience we need to drive outstanding results across all dimensions of MA performance.”
Aledade, a public benefit corporation, is the largest network of independent primary care in the country, helping independent practices, health centers and clinics deliver better care to their patients and thrive in value-based care. Through its proven, scalable model, which includes cutting-edge data analytics, user-friendly guided workflows, health care policy expertise, strong payer relationships and integrated care solutions delivered through Aledade Care Solutions, Aledade empowers physicians to succeed financially by keeping people healthy. Together with more than 1,500 practices in 45 states and the District of Columbia, Aledade shares in the risk and reward across more than 150 value-based contracts representing more than two million patient lives under management. To learn more, visit www.aledade.com or follow on Twitter, Facebook or LinkedIn.
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