Aledade, a US-based independent primary care provider network, has recently secured a $500 million senior secured credit facility from Ares Commercial Finance to support its ongoing growth initiatives. This new financing arrangement, led by Ares Credit funds, will not only double Aledade’s existing committed financing capacity but also has the potential to expand up to $650 million.
Aledade is known for its participation in the Medicare Shared Savings Program (MSSP), where it collaborates with primary care organizations to help physicians transition to value-based care models. In 2024 alone, Aledade’s MSSP Accountable Care Organizations (ACOs) were able to generate savings amounting to a staggering $1 billion.
With this new credit facility in place, Aledade will have the necessary working capital flexibility to effectively manage its expenses and further assist its partners in transitioning from traditional fee-for-service models to more sustainable value-based care models. Currently, the network works with over 20,000 clinicians across 2,400 practices and community health centers in 46 states, delivering value-based care programs to nearly three million Medicare patients.
Farzad Mostashari, co-founder and CEO of Aledade, expressed his excitement about the new credit facility, stating that it will provide the network with the flexibility needed to bridge any timing gaps in Medicare payments and support its continued business expansion. He emphasized that this will also enable Aledade to accelerate shared savings distributions to its clinician partners, allowing them to reinvest in their patients and practices sooner to maintain momentum in value-based care.
Todd Gordon, managing director at Ares Commercial Finance, also shared his enthusiasm for supporting Aledade’s growth plans. He highlighted the importance of Aledade’s sophisticated technology in driving the expansion of value-based primary care on a national level, benefiting both patients and physicians while driving savings for the Centers for Medicare and Medicaid Services.
Overall, the announcement of Aledade’s new credit facility underscores the network’s commitment to advancing value-based care and transforming the healthcare landscape. This news was originally reported by Hospital Management, a GlobalData owned brand, and serves as a testament to Aledade’s ongoing success and dedication to improving healthcare outcomes for all.
