Mostashari startup draws $30M in second round
June 15, 2015 in Medical Technology
Aledade, the ACO company that former ONC chief Farzad Mostashari, MD, started a year ago after stepping down from the government post, just landed $30 million in a second round of funding.
Mostashari says the company will use funds to expand service offerings and engage private health plans
Aledade’s stated mission is to make it easy, profitable, and low-risk for independent primary care physicians to manage the new health care economy as the Industry shifts from a fee-for-service model to one focused on outcomes.
The funding round was led by ARCH Venture Partners, and includes an additional investment from Series A investor Venrock.
[See also: Former ONC chief launches startup.]
The funds will support Aledade’s work in establishing new accountable care organizations and expanding existing ones.
The company will also continue to build 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.
Over the next three to five years, as much as half of the annual $3 trillion spent on healthcare is scheduled to move into value-based payment arrangements, such as ACOs that reward positive outcomes for patients and high-quality healthcare.
“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,” said Mostashari in announcing the new funding. “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.”
One year after the company’s launch, Aledade has expanded its national footprint 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, according to Mostashari.
[See also: Mostashari’s startup to help build ACOs.]