Aledade, the largest network of independent primary care practices in the nation, is valued at $3.5B.
By Daniel Beaird
Bethesda, Md.-based Aledade became the nation’s largest network of independent primary care practices in early 2023. The networked commercial healthcare provider (CHP) claims more than 2 million patients through over 150 value-based contracts by Medicare, Medicare Advantage, Medicaid and commercial payors, and networks over 1,500 independent primary care practices, close to 60 health centers and more than 5,000 physicians and 15,000 clinicians in 45 states and Washington, D.C.
Public benefit corporation
It is a public benefit corporation (PBC) founded in 2014 and works with primary care providers to build tech-enabled accountable care organizations (ACOs). For-profit PBCs adopt a public benefit purpose and must consider the non-financial interests of its shareholders and other stakeholders when making decisions. They must weigh their social and environmental objectives alongside maximizing value for shareholders, while detailing how well they are achieving their overall public benefit objectives.
Aledade CEO Dr. Farzad Mostashari said the corporate structure of a PBC is well-suited to mission-oriented companies where alignment with stakeholders is a key driver of the business model. Aledade represents 50% of the ACOs and 73% of patients in the top 10 ACOs in the Medicare Shared Savings Program (MSSP) by savings rate, and practices in Aledade ACOs earned $294 per Medicare beneficiary, which is almost double the average of $140 per Medicare beneficiary across the MSSP.
Regionally, practices in Georgia working with Aledade performed above the national average in depression follow-up, blood pressure control, falls screening, colorectal cancer screenings and Statin therapy. In Mississippi, practices working with Aledade led the nation in providing Annual Wellness Visits to their patients, and Arkansas, Michigan and Utah MSSP Enhanced ACOs provided care to the most patients of any ACO in the top 10 of MSSP ACOs.
Funding rounds, acquisitions and a new hire from CVS Health
Aledade is valued at $3.5 billion and secured $123 million in a Series F funding round in June 2023. The company is using the funds to accelerate the growth of its strategic alliances and primary care network, and to acquire and improve technology and services to support its value-based care solutions. It generated revenue of more than $475 million for 2022, representing more than 50% growth compared with revenue in 2021.
“After a decade of experience with different value-based models, it’s clear what works – giving primary care accountability for the total cost and quality of care,” said Dr. Mostashari in a statement. “We founded Aledade in 2014 on the premise that we can scale the success of value-based primary care.”
Aledade acquired Curia in 2022, an AI-enabled value-based care analytics platform, to utilize its data gathering, provide more accurate data predictions and help enhance primary care workflows. It also purchased Iris Healthcare in 2022, an advanced care planning solutions platform, that became part of its health services unit called Aledade Care Solutions.
Rosemary Wheldon, formerly vice president of digital health product management for CVS Health, was named chief product officer in December 2023 for Aledade. She has oversight of UX design, impact analysis, product management and related personnel and leads updates to the company’s app.