The Bethesda, Md.-based Aledade, a healthcare technology company started by Farzad Mostashari, M.D., the former National Coordinator for Health IT, has raised $30 million in venture capital funding with the aim to fuel accountable care organization (ACO) growth.
Mostashari launched Aledade last June with $4.5 million in seed funding from New York City-based venture capital firm, Venrock. This round of funding was led by the Chicago-based ARCH Venture Partners, and includes an additional investment from Venrock.
Aledade will put the funding to work in support of physicians transitioning to outcome-based care across the country. Specifically, according to officials, Aledade will establish new ACOs and expand existing ones; continue building prevention-focused applications and practice-centered software platforms for partner practices; initiate value-based arrangements with commercial health plans; and hire additional team members to help primary care practices deliver better care and better health for patients at lower cost.
One year after the company’s launch, Aledade has expanded initially from New York, Maryland, Delaware, and Arkansas to include West Virginia, Louisiana, Kansas, Mississippi, and Florida. The company is on course to triple the number of covered Medicare beneficiaries in Aledade ACOs from approximately 25,000 last year, to more than 75,000 in over 100 physician practices by the end of 2015, it says.
“There is a revolution happening in healthcare, and we are finding that doctors across the country are ready to embrace this change, but need a partner to help them get there. Aledade is that partner,” Mostashari said in a statement. “We’re helping independent physicians achieve better outcomes for their patients—and be compensated for it. The demand for our services has been overwhelming. This funding will help us reach more doctors, and continue to provide them an expanding array of services to better run their business and care for their patients,” he said.