Obama’s Former Health IT Czar Raises $35 Million for New Venture

FMBow-tied and charismatic, Dr. Farzad Mostashari, who led the Office of the National Coordinator of Health IT (ONC) from April 2009 to October 2013, has raised a total of $35 million from leading venture capitalists for his new business, Aledade. Aledade’s senior management includes veterans of athenaHealth and Practice Fusion, both firms which I admire for their entrepreneurship and relative (although not perfect) independence from government.

Like those firms, Aledade will provide its Electronic Health Records to independently practicing physicians. Aledade claims its uniqueness lies in an EHR that will ensure doctors’ win the Accountable Care Organization game. At NCPA, we think that ACOs are unlikely to succeed. Nevertheless, if anyone can pull this off, Dr. Mostashari and his team have got a pretty good edge (in my humble opinion).

What is ironic is that it was Dr. Mostashari’s office which enforced the regulations and handed out the money that have caused consolidation of physicians’ practices by large health systems. This is one reason why NCPA has recommended winding down the federal EHR program.

I am very slightly acquainted with Dr. Mostashari, having met him a few times at conferences; and I know some folks who have worked with him at ONC. They all say he is a very effective leader. And he is very committed to making U.S. health care better and more accountable. We’ll keep an eye on Aledade.

Comments (4)

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  1. Big Truck Joe says:

    So he helped write the burdensome govt rules and regulations and then raises $35 million to build a company to overcome those rules and regualtions? Isn’t that a conflict of interest at least on an ethical level? I can’t believe how cynical this world has made me become.

    • Perry says:

      “And he is very committed to making U.S. health care better and more accountable.”

      Somehow, this seems contradictory, right?

      • Well, I have a normal human response that once I meet a person face-to-face I become sympathetic. I even met Dr. Donald Berwick, had a pleasant conversation, and concluded he is a very committed medical professional.

  2. Big Truck Joe says:

    I’m a committed medical professional too, especially so if I’d be making millions of dollars doing it.