Farzad Mostashari, who was formerly national coordinator for health information technology, raised $30 million in series B funding for Aledade. ARCH Ventures Partners led the round, with participation from return investor Venrock, bringing total funding to $35 million. Mostashari, an internist, oversaw the nationwide implementation of electronic health records in the initial stages between 2011 and 2013. Last June, he founded Aledade to help doctor practices, as small as one, band together in so-called accountable care organizations (ACOs). The shift from fee for service to payment based on keeping patients healthy and out of the hospital demands a level of technological and financial sophistication that small practices can rarely afford. As a result, more than half of physicians are now employed by hospitals, which are looking to bolster their own network of doctors as they form ACOs. To comply with new payment models, health care providers have to become more proactive in managing patient care. By taking preventive health measures and coordinating care, ACOs aim to lower their costs below a benchmark set by Medicare or a private insurer, and capture savings. Aledade offers doctors an alternative to being hospital employees, giving them greater control over decision-making. “We’re helping physicians who want to stay independent and prepare for the future for value-based income models,” says Mostashari. His clients don’t have to rip and replace their electronic health records, as is often the case with hospital-based ACOs. Aledade’s chief technology officer Edwin Miller has developed software that runs on whatever EHRs doctors have, to analyze patient populations, track hospital discharges, or pinpoint patients racking up medical bills, among other tools. Miller has amassed experience working at practically every cloud-based EHR vendor from athenahealth to Practice Fusion.
Source Forbes - Business http://ift.tt/1HJb6Rc
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