Aladade's Policy Changes to Drive Down Costs

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The biggest change was what's the counterfactual and the initial approach to this base. And we still see this approach on the majority of our commercial book of business is, well, let's take last year's costs. Well, the obvious problem with that is that if you actually succeed in driving down costs, then you're driving down your own benchmarks. You know, you just can't just can't build a business where you year after year after year it's not enough to be fastest you have to be better than yourself next year. That's called, we call that the ratchet.

Founded in 2014, Aledade works with over 11,000 physicians across 40 States accounting for 1.7 million patients under management in Medicare, Medicare Advantage, commercial and Medicaid contracts.

Farzad Mostashari has spent his career in health care policy and Health Information Technology.

Farzad previously served as the National Coordinator for Health IT in the Department of Health and Human Services. Prior to his work at the Office of the National Coordinator, he founded the NYC Primary Care Information project, which equipped physicians and underserved communities with electronic health records. He completed medical school at the Yale School of Medicine and a Master’s degree in Population Health from Harvard’s T.H. Chan School of Public Health.

In this episode we talk about Farzad’s journey to healthcare, how he started Aledade, the importance of independent physicians in value-based care, how Aledade scaled as a profitable health tech company, and advice he has for founders.