Alignment Healthcare said Monday that it has raised $125 million in funding from General Atlantic. According to the firm, the capital will be used for expansion and to strengthen its service platforms. Based in Irvine, Calif., Alignment Healthcare is a provider of population health management solutions.
April 28, 2014 08:00 AM Eastern Daylight Time
IRVINE, Calif.–(BUSINESS WIRE)–Alignment Healthcare – a new, highly scalable and fully-integrated care coordination solution for population health management – today announced that it has secured a $125 million commitment from global growth equity firm General Atlantic. The financing will allow Alignment to fully expand its operational model, strengthen its service platforms, and initiate expansion into new markets across the country.
“With this investment, we are able to launch our partnerships with provider and payor organizations and realize our vision of delivering transformational ‘value-based care’ across the healthcare system,” said John Kao, Chief Executive Officer of Alignment Healthcare. “We believe this to be the inflection point where hospitals, doctors and health plans must align with each other to provide sustainable value to the consumer, and Alignment Healthcare is uniquely positioned to serve these stakeholders.”
As hospitals, doctors and health plans experience unsustainable downward pressure on reimbursements, Alignment Healthcare believes the only solution is to eliminate waste by aligning financial incentives and coordinating care. The company’s technology and integrated care coordination models will improve quality outcomes, while lowering cost and eliminating waste in the care system by focusing on the highest-cost, most complex patient groups in Medicare Advantage, Medicaid, and commercial HMO populations.
“We are committed to finding like-minded partners who want to improve our healthcare system,” added Kao. “The United States has the best hospitals, doctors and technology in the world, yet our health system for those needing ‘sick care’ is not efficient. Our model enables integration by creating alignment across all parties so that the consumer’s healthcare experience and clinical outcome both improve. We’ll connect the dots. This is population based management – one patient at a time.”
“Alignment Healthcare’s combination of clinical care coordination and risk management expertise, backed by a proven and extremely talented management team, will propel the company’s rapid growth,” said Robbert Vorhoff, Managing Director at General Atlantic. “We are excited to partner with this visionary company to help health plans and care providers work together to drive greater efficiencies across the U.S. healthcare system.”
Through its end-to-end continuous care program, IT enablement expertise, and risk management capabilities, Alignment helps provider and payor organizations better serve their patients and members, improve their profitability, and expand their market share. Using Alignment’s care model and enablement tools, provider organizations, including hospitals, health systems, IPAs and physician groups, are better equipped to take on risk and embrace the opportunities of value-based care. Alignment also has the experience to assist payors by carving-out care management for their most complex members through either full risk agreements or gain-share arrangements.
Alignment’s leadership team, with over 200 years of combined experience, includes respected leaders in managed care, clinical care coordination and post-acute care, including: John Kao, CEO and President; Don Furman, MD, Chief Innovation Officer; Ken Kim, MD, Chief Medical Officer; and Scott Reid, Chief Development Officer. The company plans to be operational across several markets in the U.S. by the end of this year.
About Alignment Healthcare
Alignment Healthcare 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. The company partners with providers, health plans and hospitals to create a seamless, fast and easy-to-navigate healthcare experience, which results in happier, healthier and more satisfied patients. Based in Irvine, California, Alignment Healthcare provides partners with an end-to-end continuous care program, including clinical care coordination, risk management capabilities, and IT enablement. For more information on Alignment Healthcare’s unique ability to transform the system from within, visit www.alignmenthealthcare.com.
About General Atlantic
General Atlantic is a leading global growth equity firm providing capital and strategic support for growth companies. GA combines a collaborative global approach, sector specific expertise, a long-term investment horizon and a deep understanding of growth drivers to partner with great management and build exceptional businesses worldwide. Established in 1980, GA has approximately $17 billion in assets under management and more than 80 investment professionals based in New York, Greenwich, Palo Alto, São Paulo, London, Munich, Amsterdam, Beijing, Hong Kong, Mumbai and Singapore. For further information and a listing of GA’s public and private portfolio companies see www.generalatlantic.com.