Former ONC Head Mostashari Raises $4.5 Million Seed Round for His New ACO Focused Startup


Farzad Mostashari,MD,  the former National Coordinator for Health IT, announced today that he is launching a new startup aimed at helping primary care physicians who are interested in creating or joining an accountable care organization.  The new Bethesda, MD-based company, called Aledade, is being backed by a $4.5 million seed investment from Venrock, a prestigious venture capital firm with investment roots going as far back as Apple’s 1978 Series A round, and a health it portfolio that includes Doctors on Demand, Castlight Health, Relay Health, Vocera, and athenaHealth.

Dr. Mostashari’s new startup will focus on easing the transition from a fee-for-service to a value-based payment models for primary care practices. This service is currently offered by traditional consulting companies, which Aledade will compete with for business.  What differentiates Aledade is that it will focus only on primary care ACO transitions, and will leave ICD-10, Meaningful Use, and acute care clinical and revenue cycle optimization business to traditional consulting firms. Beyond this, Aledade differentiates itself by having Mostashari at the helm, a leader that is passionate about healthcare reform, deeply knowledgeable about accountable care regulatory requirements, and skilled at implementing broad health IT initiatives.

Logistically speaking, Aledade plans to address the nations primary care problems by taking the process of joining or creating an ACO, and owning every aspect of it. Aledade offers “a complete package of resources, services, and technology”  resulting in a single vendor that physicians can engage to manage the entire transition process, a far less daunting prospect than researching and managing the transition independently.

Aledade analyzes a customers market and educates its business leaders on the regulatory changes involved with joining or creating an ACO. Next, workflow analysis and EHR optimization is carried out with on-site support from clinicians and informaticists, all with the goal of building a functional, metrics-driven population health database and an effective patient outreach platform. Once the practice has the technology in place, Aledade stay on-site to teach the physicians how to use the data to identify high-risk patients, and then how to engaging them early on, leveraging resources within its new network of ACO physicians to care for those patients in lower cost outpatient settings.

Mostashari will be leading the new company alongside Mat Kendall, who served in the ONC as the Director of Provider Adoption Support, for four years, where he ran the ONC’s regional extension center program which helped 150,000 physicians implement EHRs. Edwin Miller, formerly of CareCloud, athenaHealth, and  digiChart, will take on the role of CTO.

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