Editor’s Note: This story first appeared in the Washington Business Journal. It appears here in an abbreviated format. See the original post here.
Bethesda’s Aledade Inc. has done it again.
The fast-growing health tech startup, which helps physician practices cut costs and build accountable care organizations, has raked in a whopping $64 million in Series C financing, after kicking of 2019 with $56 million in then-new investments — and all in a moment of general investor restraint.
The funding will enable Aledade to continue expanding its national network of doctor-led ACOs, the company said Monday. It will also support the addition of more value-based contracts with Medicare, Medicaid and commercial health plans. It comes as Aledade sees annual revenue grow 60% and projects it will surpass $150 million within the next year, it said in an email to the WBJ.
The company has also expanded its investor base with this one. Toronto-based OMERS Growth Equity led the round, which also included participation from existing investors Echo Health Ventures of Seattle, the California Medical Association, Palo Alto, California-based Meritech Capital and GV of Mountain View, California. Prior to this round, Aledade had raised $136 million.
“Our uniquely resilient business model — built on years of hard work, innovation, and partnership — means that we have the resources during this difficult time to be able to support practices, and help them not only to survive, but to thrive,” said Dr. Farzad Mostashari, its co-founder and CEO, in a statement. “Aledade’s mission of always doing the right thing for patients, for doctors, and for society is now, and will continue to be, the core of our success as a business.”
The company is also taking steps to support its doctors through the novel coronavirus pandemic, providing them guidance on policy and regulations around COVID-19, producing information for patients, facilitating 275 practices’ launches of telemedicine visits and sending out personal protective equipment to primary care practices and community health centers within its network. That included hundreds of thousands of surgical masks, KN95 respirators, medical gloves, gowns, face shields and sanitizer, according to Aledade.
Founded in 2014, Aledade uses data analytics software to help independent doctors’ offices transition to value-based models. It now works with more than 550 independent physician practices and 7,300 health care providers across 27 states, and they’ve secured more than $47 million in savings, collectively, to date, the company reports. Its role grows as independent practices struggle for their own survival through the pandemic.
