Obama announced his intention to nominate Dr Vivek Hallegere Murthy to the top administration position along with several other nominations yesterday.
Murthy, if confirmed by the Senate to become the US Surgeon General, will be the youngest in the country's history to assume the post. He will replace Regina Benjamin, who was appointed by Obama in 2009 and left her post last summer.
Co-Founder and President of Doctors for America, Murthy is a Hospitalist Attending Physician and Instructor in Medicine at Brigham and Women's Hospital at Harvard Medical School.
"I am confident that these outstanding individuals will greatly serve the American people in their new roles and I look forward to working with them in the months and years to come," Obama said in a statement.
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The move has been hailed by the influential Indian- American physician community.
In 2011, Murthy was appointed as a member of the Advisory Group on Prevention, Health Promotion and Integrative and Public Health.
He has been the co-founder and chairman of the board of TrialNetworks, formerly known as Epernicus, since 2007.
He received a bachelor's degree from Harvard University, an MBA from Yale School of Management, and MD from Yale School of Medicine.
Hailing the announcement made by Obama, Dr Jayesh B Shah, president of the influential American Association of Physicians of Indian Origin (AAPI) said that Obama has made the right choice.
"This news cements the reputation physicians of Indian origin have across America," Shah said.
"Vivek represents the next generation of Indian-American physicians," said Dr Harbhajan Ajrawat, AAPI Legislative Committee chairman.