Alignment Healthcare scores $135M Series C funding led by Fidelity Investments, T. Rowe Price, others to bring improved care to more seniors
Alignment Healthcare, an Orange, California-based healthtech startup announced today that it raised $135 million from Fidelity Management & Research Company, funds and accounts advised by T. Rowe Price Associates, Inc., and Durable Capital Partners L.P. The Series C round, which brings Alignment’s funding to-date to $375 million, will be used to accelerate the growth of its Medicare Advantage footprint while increasing its investments in its technology platform and plan offerings.
Founded in 2013 by John Kao, Alignment Healthcare is redefining the business of health care by shifting the focus from payments to people. The company is dedicated to transforming the complex and confusing process of medical treatment so that every link in the healthcare continuum becomes more efficient, productive and effective. We’ve created a new model for health care delivery that cuts costs and improves lives by unraveling the inefficiencies of the current system to drive patients, providers and payers toward a common goal of wellness
“Caring for our nation’s seniors has been Alignment’s mission since our founding seven years ago when we launched a new model designed to reduce waste in the system by coordinating quality care around the patient, no matter where they are,” said John Kao, founder and CEO, Alignment Healthcare. “The growth we’ve since experienced is a testament to the impact our model is having in improving outcomes for seniors every day, and we look forward to continuing to advance and transform the health care experience.”
Alignment’s new capital partners join the company’s existing preeminent health care investors, General Atlantic and Warburg Pincus – both leading global private equity firms focused on growth investing. Collectively, the support of these world-class investors underscores the critical need and opportunity for improved care coordination for seniors, a reality many on Alignment’s leadership team have experienced in their families first hand. It also comes as the Medicare Advantage market expands, nearly doubling in enrollment over the past decade. Within this competitive category, Alignment Healthcare’s differentiated approach has driven a 43 percent annual growth in revenue between 2014 and 2019 as the company now approaches $1 billion in projected 2020 revenue.
Alignment Healthcare, today more than 600 employees strong, helps solve the gaps in chronic care for seniors via a combination of a personal care team and advanced analytics. Alignment’s ACCESS On-Demand Concierge gives members access to a care coordinator and clinicians 24-7 via a single phone number. The company has also invested in the creation and development of AVA™ (Alignment Virtual Application), a technology-based “command center” that houses more than 100,000 unique data signals per member to help identify changing care needs in real time.