Electronic health records company Practice Fusion on Tuesday announced that it's raised a $23 million Series B round led by Founders Fund, with help from Artis Capital Management and Glynn Capital Management, as well as existing investors Morgenthaler Ventures and Felicis Ventures. The new funds bring the company's total raised to $30 million.

Since Obama's mandate that all medical practices switch over to electronic health records, Practice Fusion has positioned itself to be the go-to resource for the 80% of doctors who practice in groups of nine or fewer, who simply can't afford to implement an electronic health record system on site. These days only 10% of doctors have electronic health records, but as the average doctor makes $120,000 a year, that doesn't leave a lot of room for paying an IT person to manage the health record system.

Enter Practice Fusion. At the time of Practice Fusion's launch in 2007, 95% of doctors were still using paper charts. But "free" is always attractive. The company offers doctors a turnkey solution that is 100% cloud-based and completely free, and the medical community is flocking to it. The company's revenue grew 400% in 2010 and the user base of doctors increased 500%, according to Ryan Howard. Practice Fusion's database holds some eight million patient records and serves 60,000 patients per day who wish to access their health records. 

In January, the company was named the number one EHR vendor in an independent survey of 30,000 ambulatory medical providers, receiving top billing across 18 categories, including overall performance, breadth of offerings and delivery excellence, reliability, and breed technology.

More than 75,000 medical professionals have joined Practice Fusion's network and 350 new professionals join each day.