Medicare Advantage startup Alignment Healthcare plans to grow its footprint again after raising more funding. The company closed a $135 million series C round on Tuesday, led by Fidelity Management & Research Company. T. Rowe Price Associates Inc. and Durable Capital Partners L.P. also invested in the round.
To date, Alignment Healthcare has raised a total of $375 million, including a $117 million round it raised in 2017 from Warburg Pincus. General Atlantic is also an investor in the company.
Last year, Alignment doubled its reach for the 2020 plan year, growing from eight counties in California to 16, as well as Wake County North Carolina. It plans to use the new funds to expand in California and other states for 2021.
The Orange, California-based startup also will use the funds to build out its technology platform and plan offerings. The company currently has more than 600 employees, and is approaching $1 billion in projected revenue for 2020.
“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,” founder and CEO John Kao said in a news release. “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.”
Founded in 2013, Alignment Healthcare combines technology and concierge services to help its members manage chronic conditions. The startup gives its members 24-7 access to a care coordinator and clinicians via a single phone number. It also has built a software solution that identifies members’ changing care needs in real time.
CMS gave Alignment Healthcare a 4.5 star rating overall for its HMO plans. Alignment got top marks for helping members manage chronic conditions, but had lower scores for member experience, such as getting appointments quickly.
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