ORANGE, Calif.--(BUSINESS WIRE)--Alignment Healthcare, a mission-based Medicare Advantage insurance company founded in 2013, today announced 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 brings Alignment’s funding to-date to $375 million, and will accelerate the growth of the company’s Medicare Advantage footprint while deepening its investments in its technology platform and plan offerings.
“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.
The funding comes on the heels of strong momentum from Alignment Healthcare in the past six months, including:
- Ranking as one of only four health plans in California as a Best Insurance Company for Medicare Advantage 2020 by U.S. News & World Report
- Receiving an overall 4.5-star rating out of a possible 5 stars from the Centers for Medicare & Medicaid Services in 2020 – comprising 4 stars for its Part C and a perfect 5 stars for its Part D offerings, and putting Alignment in the 90th percentile of all Medicare Advantage Prescription Drug plans nationwide
- Doubling both the footprint of the territories it covers and the number of plans it offers in 2020, including the debut of socially-conscious benefits for eligible members such as “grandkids on-demand,” non-emergency transportation services via an agreement with Uber Health, and monthly grocery allowances
- Forging key relationships with high-quality regional providers and physician groups such as through its co-branded offering with Sutter Health
ABOUT ALIGNMENT HEALTHCARE
Alignment Healthcare is redefining the business of health care by shifting the focus from payments to people. 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. Harnessing best practices from Medicare Advantage, our innovative data-management technology allows us to commit to caring for seniors and those who need it most: the chronically ill and frail. Alignment Healthcare provides partners and patients with customized care and service where they need it and when they need it, including clinical coordination, risk management and technology facilitation. Alignment Healthcare offers health plan options to California residents through Alignment Health Plan, and partners with select health plans in North Carolina to help deliver better benefits at lower costs. For more information, please visit www.alignmenthealthcare.com.
