Mostashari's company raises $30M in funding

Aledade, the accountable care company founded by former national coordinator Farzad Mostashari, MD, MSc, last year, has secured $30 million in a second round of funding.

Mostashari said the company, with a mission of making it easy, profitable and low risk for smaller physician practices to transition to pay for value, will use funds to expand service offerings and engage private health plans.

The funding round was led by ARCH Venture Partners, and includes an additional investment from Series A investor Venrock.

Aledade also is working on prevention-focused applications and practice-centered software platforms for partner practices; initiating value-based arrangements with commercial health plans and hiring additional team members to help primary care practices deliver better care and better health for patients at lower cost.

"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 a release about 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."

Since its founding, Aledade has expanded from New York, Maryland, Delaware and Arkansas to West Virginia, Louisiana, Kansas, Mississippi and Florida and plans 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 this year, Mostashari said.