Funding a Company’s Vision: a Better Future for Healthcare
growing a New Model of Primary Care
MOCONNECT presents a spotlight on Aledade, an innovative company that is offering a new model of primary healthcare. MOCOCONNECT recently spoke with Aledade’s SVP of Finance and Operations Molly Hill Patten, who offered insights into her company’s success raising venture capital funding.
MOCONNECT: Can you give us some background on Aledade?
Patten: We were founded in 2014 by CEO Dr. Farzad Mostashari, who is the former National Coordinator for Health IT at the U.S. Department of Health and Human Services (HHS). Ours is a value-based healthcare company that partners with primary care physicians to build and lead Accountable Care Organizations (ACO). Joining one of our ACOs allows doctors to stay independent, practice medicine the way they see fit and financially thrive by keeping people healthy.
We provide data analytics and user-friendly technology to help doctors provide more seamless care, as well as exceptional regulatory expertise and face-to-face practice transformation support. Aledade has established successful ACOs that care for more than 330,000 patients in 18 states.
MOCONNECT: How has Maryland played a role in your company’s success?
Patten: Maryland, specifically Montgomery County, is the perfect place for us to be. The proximity of policy-making organizations gives us the opportunity to represent the interests of our independent physicians by being a part of the policy dialogue.
As a state, it makes an effort to help support entrepreneurial companies and drive economic growth. I mention this because we took advantage of the R&D Tax Credit, which gives us a pre-tax payroll credit. We could use this because we were based in Maryland.
MOCONNECT: There is a perception that companies cannot raise money here. Is this true?
Patten: I would say that this notion is a myth. Aledade raised $45 million in our last round. Healthcare is in a complex space and so we look for people who understand and believe in what we want to do. We are incredibly fortunate we have fantastic investors, including a local investor: the Maryland Venture Fund.
One of the reasons we receive our funding from investors is our location; they recognize the value of being a part of the policy dialogue and the quality of talent this region can produce.
MOCONNECT: What benefits do you derive from your Montgomery County location?
Patten: We have had a great experience being in Montgomery County, from the R&D tax credit I mentioned before, to the ease of building out new office space.
In addition to these benefits, the Maryland Venture Fund is a great thought partner who also helps us in our recruitment efforts. Lastly, Montgomery County’s ease of access to public transportation is a great benefit!
MOCONNECT: Any final thoughts?
Patten: Despite the debate in Washington over healthcare, the move to value-based healthcare has only accelerated. If I were to emphasize one point, it would be that we’re using our funding to grow and diversify our network of independent physicians. They are the ones on the front line, taking better care of us all!
Aledade received funding from the Maryland Venture Fund, an investment that has allowed the company to grow. The Maryland Venture Fund is an early-stage, evergreen venture capital fund dedicated to funding and growing outstanding business in Maryland.
To learn more about Aledade, visit their website.