John Kao

John Kao

Alignment Healthcare, which began in 2013, is well on its way to becoming a billion-dollar business.

The Orange-based company, which sells Medicare Advantage insurance to people enrolled in Medicare, reported $703.5 million in revenue for the 12 months ended June 30.

That’s almost double the amount from two years ago, making Alignment Healthcare the fastest-growing OC-based private company on this year’s Business Journal list in the large company category—those with more than $100 million in sales (see list, page 38).

“For calendar 2019, we’ll exceed $800 million in revenue,” founder and Chief Executive John Kao told the Business Journal.

“I think by 2020, this time of year, we will be in excess of a billion.”

The company, which currently has more than 60,000 members, last month announced a plan to double the footprint of the territories it covers and the number of plans it offers in the 2020 enrollment cycle.

It’s going to offer preferred provider organization (PPO) plans to give more choices to seniors. It’s aligning with Sutter Health, a giant non-for-profit provider of healthcare, to double its market in Northern California. The company is expanding its ACCESS On-Demand Concierge "Black Card” that currently helps members buy things such as over-the-counter drugs to other products such as purchasing groceries.

Kao attributes the fast growth to the company’s motto.

“It’s the simple fact of treating every member as if they were my mom or dad. The value of the company is putting that first and doing whatever it takes to satisfy that member.”

Deep Background

Kao has an extensive background in the healthcare industry.

He and other investors in 2006 acquired Downey-based CareMore Medical Enterprises Inc., where he became president. It was sold for about $800 million in 2011 to Indianapolis-based WellPoint Inc.

Kao’s background also includes working at TriZetto Group Inc., a provider of healthcare billing software; and serving as chief executive of PacifiCare Ventures, the e-commerce unit of PacifiCare Health Systems Inc., which is now part of Minneapolis-based United HealthGroup Inc.

100,000 Data Signals

In 2013, he began Alignment Healthcare to build a “patient-centric health care company” that would focus on high-risk patients who have complex medical problems.

The company developed a platform, Alignment Virtual Application, or AVA, an artificial intelligence-driven “command center.” The platform, which is designed to scale, has more than 100,000 unique data signals per member that identify changing care needs in real time to provide care when and where seniors need it most.