We are thrilled to share that Flare Capital Partners has deepened our partnership with Cascala Health, an AI-enabled care transitions software platform transforming how patients move between care settings. Today, Cascala announced the close of its $8.6 million Seed financing, co-led by Flare Capital Partners and Eniac Ventures, and welcomed additional new investors Omega Healthcare Investors, Ziegler Link-Age Fund, Tau Ventures, and Digital Health Venture Partners.
This marks the third time we’ve partnered with CEO and Co-Founder, Matt Murphy. Matt previously served in key leadership roles at Circulation and Cohere Health (both Flare portfolio companies) where he proved himself as a thoughtful operator with a deep understanding of care delivery workflows. He is joined by CTO Himanshu Chaudhary (former Chief Architect at Wondr Health and CTO of eMindful) and Chief Medical Officer Dr. Joseph Jasser (healthcare veteran and executive from Cigna, Dignity Health, Humana and Signify Health), along with a talented team of advisors from across the healthcare continuum.
Why We Invested
Care transitions from hospital to home, between specialists, or across post-acute settings, remain one of the most fragmented and risk-prone moments in the patient journey. In the U.S., 30-day hospital readmissions cost the healthcare system billions annually, while incomplete handoffs and siloed clinical data place patients at unnecessary risk and create duplicative work for providers. This has been a persistent problem in healthcare for decades, and a clear use case for AI. Prior to joining Flare Capital, Vic led product strategy at Curaspan, a leading post-acute care transitions platform that was acquired by naviHealth in 2016, and later by Optum and Wellsky. At that time, companies like Curaspan digitized workflows that had previously been done via fax machines. The leap from fax to HL7/API platforms was vast. The leap from the prior generation of software platforms to modern LLM solutions, like Cascala Health, promises to be the next significant shift in streamlining the administrative burden of care transitions.
Cascala’s platform addresses these challenges with a clinically informed knowledge stack powering large language models (LLMs) to produce enhanced discharge summaries, dynamic risk scores, and condition-specific care plans. Its early product offerings include Clarity™ for AI-driven data curation, Continuity™ for longitudinal patient views, and Copilot for automated in-workflow activation.
By surfacing relevant information sooner and streamlining communication between care settings, Cascala enables providers to be better prepared for a new patient visit, minimize failures of care coordination, inform next best clinical actions, and strengthen value-based care performance.
Strategic Partnerships Powering Cascala’s Next Growth Chapter
Cascala’s initial focus is on risk-bearing providers and post-acute care organizations where improved care transitions directly translate into better quality scores, shared savings, and patient outcomes.
In early 2025, Cascala launched its first partnership with one of the largest nationally recognized, physician-owned ACOs. The partnership is demonstrating the platform’s ability to deliver high-quality, timely transition reports and integrate seamlessly into provider workflows. Physicians and care teams have already reported meaningful improvements in efficiency and care coordination, including a more than 50% reduction in manual effort.
The addition of Omega Healthcare Investors and Ziegler Link-Age Fund as strategic partners positions Cascala to accelerate its entry into post-acute care. The combined relationship represents nearly 1,000 skilled nursing and assisted living facilities and over 150 senior living operators, offering direct access to a broad range of post-acute providers.
Looking Ahead
Given the scale of the challenge, the strength of Cascala’s technology, and the experience of its leadership team, we believe the company is uniquely positioned to become the leader in AI-enabled care transitions, helping providers deliver better outcomes, more efficiently, at scale.
We are proud to partner with the Cascala team and Matt once again as they tackle one of healthcare’s most pressing and solvable challenges.
To learn more about Cascala Health: reach out to Vic Lanio (vic@www.flarecapital.com), Tara Sullivan (tara@www.flarecapital.com), or any member of the Flare Capital team, we would love to hear from you.
Careers: Cascala Health is hiring across engineering and operations roles. Explore their open positions here.
