Aledade Secures $500M Credit Facility to Accelerate Value-Based Care Expansion

Value-based care enablement company Aledade has closed a $500 million senior secured credit facility, marking a significant milestone in its mission to transform primary care in the United States. The deal, led by Ares Credit funds, provides Aledade with substantial financial flexibility to support its rapid growth and scale its operations across the country.

Financing Details and Strategic Implications

The newly secured credit facility, which has the potential to expand to $650 million, effectively doubles Aledade's current committed financing capacity. This influx of capital is earmarked to support the company's ongoing expansion and to accelerate the distribution of shared savings to its network of clinician partners.

Farzad Mostashari, M.D., CEO and co-founder of Aledade, emphasized the strategic importance of this financial move: "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. 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."

The credit facility comes on the heels of Aledade's successful funding rounds, including a $260 million Series F round in July 2023 that valued the company at $3.5 billion. This latest financial arrangement underscores the company's strong growth trajectory and its increasing influence in the value-based care landscape.

Aledade's Expanding Footprint and Impact

Aledade has established itself as a formidable force in the healthcare industry, boasting the largest network of independent primary care in the U.S. The company currently supports over 20,000 clinicians across 2,400 practices and community health centers in 46 states, serving nearly 3 million Medicare patients through value-based care programs.

The company's impact on healthcare savings has been substantial. In 2024, Aledade's Medicare Shared Savings Program (MSSP) accountable care organizations (ACOs) generated $1 billion in savings. Moreover, 93% of Aledade's physician-led ACOs achieved shared savings in the 2024 MSSP performance year, significantly outperforming non-Aledade participants.

Todd Gordon, Managing Director and Head of Healthcare ABL at Ares, expressed confidence in Aledade's growth strategy: "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."

Strategic Acquisitions and Partnerships

Aledade's growth strategy extends beyond organic expansion. In June, the company acquired the Michigan-based value-based care operations of CCA Holding Company, further solidifying its presence in the state. This move followed the previous year's acquisition of Medical Advantage, a Michigan-based provider of practice performance improvement and value-based care enablement solutions.

Additionally, Aledade has been forging strategic partnerships to extend its reach. Earlier this year, the company expanded its value-based care relationship with Humana, bringing their collaborative services to rural health clinics and federally qualified health centers across 26 states. This partnership aims to address the unique challenges faced by healthcare providers in rural and underserved areas.

As Aledade continues to leverage its technology platform and expand its network, the company is poised to play an increasingly pivotal role in shaping the future of value-based care delivery in the United States.