Physician's startup now valued at $3.5B

Physician's startup now valued at $3.5B unknown

Adelade, a healthcare startup co-founded by CEO Farzad Mostashari, MD, in 2014, has raised $260 million in venture capital to expand its network, which has increased its valuation to $3.5 billion, according to Bloomberg.

The company, which has raised $660 million in total, helps physicians transform their practices to take advantage of new payment models as healthcare continues its shift from fee for service to value-based care.

Adelaide has grown rapidly in recent years, partnering with hundreds of practices that provide care for almost 1.7 million patients across more than 37 states, according to its website.

The company started out as an early participant in value-based care experiments by Medicare but has since signed agreements with large commercial payers as well, including Elevance Health, Humana and Cigna, according to Bloomberg. Adelade's network covers more than 2 million patients and manages more than $20 billion in annual health spending.