Former ONC Chief Mostashari Heads ACO Startup

Dr. Farzad Mostashari, former head of the Office of the National Coordinator for Health Information Technology, is starting a new firm, Aledade, to help independent primary-care physicians form accountable care organizations.

Dr. Farzad Mostashari, former head of the Office of the National Coordinator for Health Information Technology, is starting a new firm, Aledade, to help independent primary-care physicians form accountable care organizations. The startup has $4.5 million in seed funding from venture capital firm Venrock.

Independent practices looking to form ACOs have to expend money “to hire the people, to get the agreements, to get the licenses, to do the legal work, to hire the executive director, and a medical director, practice transformation, the analytics software, the data warehousing, the EHR interfaces,” he said. “All of that takes money,” often $1 million to $2 million.

“And that's what we provide, upfront,” Mostashari said. “We get paid on the backend, if and when we generate savings.” Of those savings, Aledade will take 40%, with the providers retaining 60%.

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Source: Modern Healthcare