Aledade Raises $30 Million Series B To Ramp Up Its ACO Support Firm

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Bethesda, MD-based digital health startup Aledade raises a $30 million Series B led by new investor ARCH Venture Partners and with participation from existing investor Venrock. The new round brings Aledade’s total raised to an impressive $34.5 million since its launch just a year ago. Aledade was founded by Farzad Mostashari, MD, former national coordinator for health IT, after leaving the ONC and serving a short stint as a visiting fellow at the Brookings Institute.

Now, with three years of experience helming the nation’s top digital health office behind him, Mostashari is wading back into the trenches to help independent practices and physician groups form Accountable Care Organizations, a process he describes as both complex and expensive. “To hire the people, to get the agreements, to get the licenses, to do the legal work, to hire the executive director, and a medical director, practice transformation, the analytics software, the data warehousing, the EHR interfaces,” he said, “all of that takes money.” At his side at Aledade is former ONC colleague Mat Kendall. Kendall oversaw the highly-successful regional extension center program during his time at ONC, helping rural practices procure and implement EHRs.

To help practices overcome the initial financial and bureaucratic barriers to forming an ACO, Aledade provides upfront guidance and financial support, and then earns its profit on the back-end by taking a share of the savings generated once the necessary changes are implemented and live. He markets his services as nearly a turnkey solution to ACO formation.

So far, Aledale has partnered with organizations in Arkansas, Delaware, Maryland and New York City, and plans to be in nine states by the end of the year. The company will use its new funding to broaden its service line and help its existing customers leverage their ACO model with private payers.



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