Alignment Healthcare Raises $240 Million To Expand Role In Elderly Healthcare
Alignment Healthcare has raised a total of $240 million from investors to offer its own healthcare plans to the elderly in the Medicare Advantage market, according to Business Insider.
There are 22 million Americans enrolled in Medicare Advantage plans, and thousands sign up daily as they reach age 65. There is a lot of compeition for this demographic in the healthcare industry. Alignment's purpose is to provide health insurance plans and services to help direct healthcare for the Medicare Advantage market.
Alignment currently has 61,000 members Medicare Advantage members in California, North Carolina, and Florida. The company is attempting to drastically increase its operations in the upcoming years. Revenue in 2019 is estimated at around $800 million. The company is planning to double the area in which it operates. For this plan to go through, Alignment needs to partner with Sutter Health hospital system.
"I think a lot of the health systems out there over the last 5 years who have tried to get value based care realize it's not as easy as they thought," Alignment CEO John Kao said. "I expect our relationships, our partnerships, to continue as part of our growth strategy."
For the first half of 2019 in California, Alignment generated $336 million in revenue, resulting in a net gain of $3.7 million. Furthermore, the company spent 86 percent of the premiums it received on healthcare for its clients.
Alignment Healthcare is expanding its presence in the ferocious and expanding Medicare Advantage healthcare market.