Aledade has achieved unicorn status through a $260 million funding round, which the company says it will use to grow its network of independent clinicians and invest in technology, including artificial intelligence.
The Series F round values the company at $3.5 billion, according to Bloomberg News. 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 year’s largest cash infusions in a challenging economic environment for digital health companies.
The company plans to invest the funds in new clinical and A.I. capabilities, CEO and co-founder Dr. Farzad Mostashari said. Aledade also aims to expand its network of insurance partners.
“We’re growing our practice population really, really fast, and every one of those practices serves patients from many different health plans,” Mostashari said.
Aledade has raised $677.9 million since it was founded in 2014, according to Modern Healthcare data. The physician enablement company is not entertaining offers to be acquired, Mostashari said.
The company assists independent clinicians in sharing patient risk with payers and takes a cut of savings it helps doctors and insurance companies achieve. Aledade generated $475 million in revenue last year, representing a more than 50% increase from 2021, according to a news release the company issued Wednesday.
Aledade says it holds more than 150 value-based contracts with insurers and providers that cover more than 2 million patients enrolled in the Medicare Shared Savings Program, Medicare Advantage plans and other forms of accountable care. Its network includes more than 1,500 primary care practices.
In March, the company inked a 10-year contract to manage Medicare Advantage members for Humana and expanded its contract with Cigna to three new states. Aledade also holds a value-based care agreement with Elevance Health, which manages 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 executive Dr. Efrem Castillo has been appointed as senior vice president for Medicare Advantage, while former Commonwealth Fund President Dr. David Blumenthal and Shutterstock CEO Paul Hennessy have joined Aledade’s board, the company said.