AllyAlign Health Snags $300M Investment, New CEO | #healthcare | #elderly | #seniors
In a testament to the health care industry’s growing interest in value-based care models, AllyAlign Health has pulled in a new investment of $300 million led by global venture capital firm New Enterprise Associates (NEA), the company announced Thursday.
Richmond, Va.-based AllyAlign partners with long-term care providers to set up Medicare Advantage institutional special needs plans (I-SNPs), chronic care special needs plans (C-SNPs) and dual-eligible special needs plans (D-SNPs).
“AllyAlign was pressure-tested during the COVID pandemic; their model had proven itself prior to 2020,” Mohamad Makhzoumi, the general partner and head of global health care investing at NEA, said in a press release announcing the investment. “However, their exceptional services really went to work over the last year. We’ve closely followed the evolution of value-based care in the long-term care setting over the years and are thrilled to partner with AllyAlign to expand and scale their services.”
As part of the investment, led by NEA with participation from Oak HC/FT, Town Hall Ventures, and existing investors Heritage Group and Ziegler, AllyAlign also named a new CEO: Mark Price, the former president of the Nevada region for Intermountain Healthcare.
Skilled nursing providers have been interested in I-SNPs for some years now, and the plans that launched over the course of 2020 proved that interest was not overshadowed by the pandemic. LTC-backed I-SNPs accounted for 37% of total I-SNP offerings in plan year 2021, according to an analysis from the consulting firm ATI Advisory.
During COVID-19, the benefits of the I-SNP model — which entails integrating care for plan beneficiaries onsite — became clear, especially as hospitals in some parts of the country struggled to maintain bed capacity when hit by COVID-19. But the model has obvious benefits for residents of a skilled nursing facility even outside the pandemic context, and by giving providers premiums to manage the members per month, they have more of a stake in the outcomes and health of each resident.
“Eight years ago, we set out on an audacious mission—to transform the care of frail, vulnerable seniors by leveraging a full risk model in partnership with high quality skilled nursing and senior housing partners,” AllyAlign founder Will Saunders said in the press release announcing the investment. “We’re proud of the impact and improved health outcomes we’ve had within the senior community thus far and are thrilled at the opportunity to expand our offering.”