Value-based care enablement company Aledade secured a $500 million senior secured credit facility, led by Ares Credit funds, to support the company as it continues to scale its business.
The new credit facility, which has flexibility to expand to up to $650 million, doubles Aledade's current committed financing capacity, the company said in a press release.
Aledade was founded in 2014 by Farzad Mostashari, M.D., who previously served as the national coordinator for health IT at the U.S. Department of Health and Human Services, and Mat Kendall. The company uses data analytics software to help independent doctors’ offices transition to value-based models. The company's technology helps practices identify and better manage their most at-risk patients.
The company now claims it is the largest network of independent primary care in the U.S.
The expanded credit facility provides working capital flexibility to help Aledade manage its expenses and support its partners in their transition from the existing fee-for-service model to success in value-based care, the company said.
"This working capital facility provides Aledade with the flexibility to bridge the natural timing gap in Medicare payments and the capacity to expand as we continue to scale our business,” Mostashari, CEO of the company, said in a statement. “This allows us to accelerate shared savings distributions to our clinician partners, enabling them to reinvest in their patients and practices sooner to sustain our momentum in value-based care.”
Aledade, a public benefit corporation, currently supports more than 20,000 clinicians in 2,400 practices and community health centers across 46 states, serving nearly 3 million Medicare patients through value-based care programs. In 2024, Aledade’s MSSP accountable care organizations generated $1 billion in savings. In the 2024 MSSP performance year, 93% of Aledade's physician-led ACOs achieved shared savings compared to less than 70% among non-Aledade participants.
The company claims its provider partners have driven more than $3 billion in healthcare savings for U.S. taxpayers.
“We are excited to support Aledade’s growth plans as its sophisticated technology continues to enable the expansion of value-based primary care on a national level to the benefit of patients and physicians while helping to drive savings for the Centers for Medicare and Medicaid Services,” said Todd Gordon, managing director and head of healthcare ABL at Ares.
In July 2023, Aledade picked up $260 million in series F funding to fuel its continued growth and expand its network. A year prior, the company banked $123 million in a series E round.
The series F funding deal valued the company at $3.5 billion, Bloomberg reported, citing people familiar with the situation.
In June, the company acquired the Michigan-based value-based care operations of CCA Holding Company, growing its existing footprint across the state. The deal followed last year’s acquisition of Medical Advantage, a Michigan-based provider of practice performance improvement and value-based care enablement solutions.
Earlier this year, the company expanded its value-based care relationship with Humana to bring the partnership's services to rural health clinics and federally qualified health centers. That partnership will extend to clinics and FQHCs in 26 states, the companies said.