We are thrilled to share that Flare Capital Partners has led the $16.5 million Series A in GenHealth, a leader in deploying AI agents for the medical back office, bringing the company’s total funding to $30 million. We are joined by existing investors Craft Ventures and Obvious Ventures, along with new investors Eniac Ventures, InHealth Ventures, Epsilon Health Investors, and ARTIS.
This partnership has been almost a decade in the making. We first met Ricky Sahu in 2017 when he was co-founding 1upHealth, an early innovator in the healthcare data interoperability space. Ricky and team scaled that business to serve roughly 50 million patients across approximately 70 health plans and had a profound impact on how data moved through the healthcare system. 1upHealth was early to the FHIR interoperability solution space, and Ricky was again early to generative AI in healthcare before most of the industry had a name for it.
When Ricky began preparing the Series A for GenHealth, we knew this was the right time to partner. Ricky is joined by Co-Founder and CPO/CTO Ethan Siegel, who played critical roles in engineering and 1upHealth’s AI Lab, and brings critical experience from Dana-Farber Cancer Institute. Ethan is the architect of GenHealth’s Flow Builder and decision-tree engine, and customers cite him among the primary reasons they chose the product. They have hired amazing early technical and commercial teams, and is supported by an advisory bench including Don Rucker, former National Coordinator at ONC, and Aneesh Chopra, the first Chief Technology Officer of the United States.
Why We Invested
The US healthcare industry spends approximately . That figure represents roughly 20% to 25% of every healthcare dollar, and it has not meaningfully improved in decades. Prior authorization, eligibility verification, medical necessity documentation, billing, and denials are still performed largely by people working across a fragmented set of systems that were never designed to speak to one another. Of that $1 trillion, approximately $200 billion sits in the financial transactions ecosystem alone, the claims processing, payment, patient collections, and prior authorization work that moves between providers and payers.
This work has been out of reach of automation for a long time, and not for lack of trying. Rules engines and APIs are too brittle to handle the volume and variability of clinical documentation. General purpose AI agents are capable but not finely tuned for healthcare and disconnected from the systems where the work actually happens.
GenHealth’s AI digital employees work across EHRs, payer portals, phone, and fax to complete revenue cycle workflows end-to-end, from intake and eligibility through prior authorization, billing, and denials. Rather than asking customers to adopt a new system of record, GenHealth logs into the systems they already use, with their own credentials, and does the work inside them. Flow Builder lets workflows be composed modularly and resolved to code, with deep integrations into Brightree, eClinicalWorks, Athenahealth, payer portals, and state Medicaid systems. Underneath sits GenHealth’s own medical model, trained on 140 million patients, supplying clinical context that generic models lack.
Source: GenHealth
Importantly, GenHealth does not assume that AI does everything. When the system is uncertain, it escalates to a human reviewer, and GenHealth medical billers work alongside customer staff. That combination is what makes the product viable for mission-critical workflows. It also shows up in speed: the first customer took six months to go live, while new customers now go live in two to three days. In fact, since we started the Series A process, GenHealth has onboarded new customers each week.
What We Heard in Diligence
One theme came through consistently. 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. Customers report as much as a fourfold increase in productivity, meaningful headcount avoidance, and revenue increases of more than 30% through better patient capture and cleaner claims, which is rare in revenue cycle management. It also helped that the company signed and onboarded several new customers as we were getting to know the team, so we could see their impact in real-time.
Looking Ahead
Provider organizations do not need another system of record. They need jobs to be done accurately and efficiently. We believe the next era of healthcare infrastructure will be defined by systems that complete work rather than record it, and will require teams that have a combination of best-in-class technical capabilities, with a deep understanding of healthcare workflows. GenHealth’s expertise in both makes it easy to get started, and is having a profound impact on how their customers transform their back office with AI, so they can focus more of their attention and resources on patient care.
After nearly ten years of watching Ricky and team grow, we are delighted to finally be partners.
To learn more about GenHealth: Reach out to Vic Lanio (vic@flarecapital.com), Alyssa Tsenter (alyssa@flarecapital.com) or any member of the Flare Capital Partners team — we would love to hear from you.
We are excited to be on this journey together!
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About Flare Capital Partners
Flare Capital Partners is a leading healthcare technology venture capital firm advancing innovation-driven companies to improve positive health outcomes, broaden care access, and lower healthcare costs. We partner with exceptional founders solving healthcare’s hardest challenges, supporting each with our deep sector expertise, unparalleled industry resources, and proven access to commercial opportunities. Our team of established investors and senior operating executives has invested in 80+ companies and has nearly $1 billion in assets under management. Learn more at www.flarecapital.com.
