GenHealth.ai, a health tech company building AI for administrative tasks, announced Tuesday that it raised $16.5 million in Series A funding.
The startup launched in 2023 and supports medical practices. It offers AI agents for the medical back office, handling tasks like intake, eligibility, prior authorization, billing, denials and appeals. GenHealth was spun out of 1upHealth, a health data and interoperability company.
“Healthcare providers and suppliers must hire numerous staff members to chase the money that they have already earned,” said Ricky Sahu, CEO of GenHealth, in an email. “The job is so taxing that staff are overworked and often don’t have enough time to be as diligent with reading hundreds of pages of charts, checking eligibility across multiple portals, and chasing lower-dollar-amount denials. Our AI employees work with the current team members and existing systems of records to automatically execute these time-consuming tasks autonomously.”
Where Will AI Deployment Benefit Payers the Most?
We are taking a look at how health insurers are using AI, defining success, and managing cybersecurity risks. Give us your opinions by completing our brief, anonymous survey.
Flare Capital Partners led the Series A round. Craft, Obvious Ventures, Eniac Ventures, InHealth Ventures, Epsilon Health Investors and ARTIS also participated. In total, GenHealth has raised $30 million.
GenHealth is filling a major unmet need, according to Flare Capital Partners.
“Customers described GenHealth as transparent and configurable in ways competing products were not. One operator told us simply that this team ‘knows what they are doing,’ a sharp contrast to other solutions they had tried, was quick to understand and automate their workflows. Another, who had come off a legacy platform after more than two years of frustration, said he feels more at ease than he has in years,” according to a blog post from Victor Lanio, partner at Flare, and Alyssa Tsenter, senior associate at Flare.
The financing will be used to onboard new customers and improve the company’s technology so the AI can “automatically learn and build customer workflows passively,” Sahu said.
Closing the Quality-Affordability Gap in Workplace Mental Health
In an interview, Kyan Health Co-Founder and Chief Commercial Officer Konstantin Struck discussed how Kyan gives mid-market and enterprise employers access to premium workforce mental healthcare, at a price point that is affordable.
Currently, the U.S. spends about $1 trillion a year on healthcare administration. GenHealth’s ultimate goal is to automate this major administrative burden in healthcare, according to Sahu.
“It is clear, with new AI, that the majority of this is going to be automated,” he said. “It requires a novel approach, however, that can be both accurate and cost-effective in the industry of healthcare. GenHealth is building those AI-based approaches to be nearly deterministic without the overhead of image-based computer models and the associated cost and variability that they introduce.”
He noted that with GenHealth, customers are increasing revenue by 34% and are seeing up to an 80% reduction in administrative costs.
Photo: Topp_Yimgrimm, Getty Images