Confido Health is expanding beyond AI voice agents to build out an agentic AI operating system that can execute administrative workflows across a medical practice.
The company secured a $12.5 million series A extension following its $10 million series A round announced in September to continue scaling an AI platform for end-to-end healthcare operations. The extension round was finalized in February, according to the company.
Confido Health integrates with more than 50 systems of record, including electronic health records, practice management systems, phone systems, billing systems and fax, without requiring any change to a practice's existing tech stack. Confido's AI agents can increase administrative staff's capacity to serve patients, by automating routine tasks like appointment scheduling, insurance verification, billing and patient outreach, according to executives.
"Now that we have access to so much of the system of record, it's time for a technology to exist that can truly add capacity by becoming that system of action," Chetan Reddy, co-founder and CEO of Confido Health, told Fierce Healthcare.
Confido Health executives assert that its agentic AI operations platform can actually execute administrative work across existing systems, helping practices increase capacity and control labor costs rather than simply giving staff another software tool.
Z47, formerly Matrix Partners India, led the extension round with healthcare private equity veteran Justin Saks joining as an investor and board advisor. Existing investors Together Fund and Blume Ventures also backed the series A extension.
Confido Health now works across more than 1,500 sites of care, mostly independent practice groups, in 27 states, reaching about 3,200 providers. Reddy notes that one in 50 patients can now access their provider through Confido's agents.
Reddy, whose entrepreneurial background includes founding prior ventures like BurnCal and Dronation Labs, was motivated to launch an AI startup focused on healthcare based on his personal experiences with the U.S. healthcare system. While seeking care for his wife's scoliosis diagnosis, he was frustrated by how difficult it was to navigate the system, including getting calls answered, receiving instructions and following up after appointments.
The doctor explained that the practice simply didn’t have enough staff to provide the level of support patients needed, Reddy said, exposing the problem that many outpatient providers have with staffing and capacity challenges. Redd said he spent 15 months visiting practices across the U.S. and working in front offices, which shaped his conviction that healthcare providers needed better ways to handle administrative work and help patients navigate care.
Confido Health's platform takes patient details, referral information and payer requirements captured during intake to perform outreach and scheduling later on. By carrying context from one task to the next, a single interaction can trigger a referral, an appointment, a prescription refill, and a payment, instead of routing each one to a different tool or a different person, according to executives.
Confido executives say the company has seen 15x growth since its last round, with private equity-backed provider organizations emerging as a key growth channel. Confido has a unique "go-to-market" strategy as it sells first to private equity investors and then expands into their portfolio companies, targeting multi-site provider groups struggling with staffing, rising operating costs and fragmented technology. The company is able to provide its technology within the investors' portfolios and then use those relationships to expand across additional provider groups.
Although healthcare practices pay for Confido’s technology, private equity firms’ AI teams play an influential role in evaluating vendors, evaluating their technology, security, privacy and potential benefits before recommending solutions to portfolio companies, Reddy noted.
Private equity ownership of physician practices has been rising in the past two decades. PE acquisitions of physician practices increased more than six-fold between 2012 and 2021, according to one study. PE firms own approximately 6.5% of all U.S. physician practices, according to a 2025 analysis from the American Medical Association (AMA). PE firms’ market share exceeds 30% and 50% in some local markets, with significant geographic and specialty-type variation.
Corporate entities, which include PE firms, health insurers, and pharmacy chains, have experienced a massive wave of consolidation, collectively owning 30.1% of all medical practices, the AMA found.
Medical practices face a mounting cost squeeze, with double-digit operating cost increases, flat reimbursement and staffing shortages. Support staff compensation alone accounts for roughly 25% to 30% of practice revenue, making hiring and retention a major barrier to improving margins, particularly for PE-backed provider groups.
Confido Health's platform is well-suited to handle the complexity of independent healthcare groups, including PE-backed provider platforms, with shared infrastructure across locations, different rules by provider and site, and support for the change management that multi-location expansion requires.
"The PE funds started looking at the ROI that we were providing to these provider groups that they own and realized the amount of capacity we were adding for these groups really struggling with labor shortages. They said, 'Can you also take this and implement it at some of the other provider groups that we hold a lot of equity in,' and that organically enabled us to grow very fast," Reddy noted.
Confido’s platform achieved over 95% AI handle rates across critical end-to-end office use cases, adding capacity equivalent to three to five full-time employees on average within three months of deployment.
Providers project $10 million to $15 million in annual savings, according to the company. Confido is targeting specialties including ophthalmology/optometry, physical therapy, dental and primary and community care.
“After 14 years investing in multi-site healthcare, I’ve never seen anything quite like the growth potential embedded in Confido’s PE flywheel or the pace of its momentum and scale,” said Justin Saks, Investor and Board Advisor at Confido Health. “With a proven agentic operating layer clearing the obstacles hindering provider growth and access to an endless pipeline of customers, Confido has built a bulletproof distribution model that also solves one of the industry’s biggest pain points.”
Michael Pascetta, Vision Innovation Partners' chief financial officer, said its practices doubled collections in its payments department since deploying Confido. "We’re following up on patient balances even more, because the tool now makes outbound calls too. For me, that’s been a huge, huge win," Pascetta said.
Confido executives say the use of agentic AI at medical practices also benefits patients by reducing friction in traditional patient communications and making it easier for patients to access care. Provider groups deploying Confido's agents report higher patient satisfaction scores. "Just like me, I don't want someone to struggle to find clear answers. Everything becomes instant. Your verification is instant. Your authorization is not delayed. You get the slot that you want. And there are other patient experience benefits, which I personally care a lot about," Reddy noted.
“Healthcare administration is a trillion-dollar cost center, and for decades the only way to manage it was to hire more people,” said Vikram Vaidyanathan, partner and senior managing director at Z47, in a statement. “Confido is building AI staffing for healthcare. Every provider runs on a different patchwork of systems, and Confido's platform CareOS along with forward-deployed engineers make deployment seamless, so its virtual employees become an integral part of the workforce. Confido understands a clinic's operations as well as the people running it. We're excited to lead their Series A and back their vision of a hybrid healthcare workforce in the US.”
In healthcare, the race is on for AI agents. A growing list of startups and scaled health tech companies are applying agentic AI to front office and back-end administrative work. EliseAI, a company using AI to tackle administrative tasks, secured $350 million in September after picking up $250 million in August 2025, Heidi landed $340 million to fuel its push beyond clinical documentation into AI-powered workflow automation and agentic capabilities for clinicians, while Suki just nabbed $90 million to expand its platform from standard clinical documentation into autonomous AI agents. Assort Health picked up $120 million in series C funding in June to fuel its work building out a voice AI agent platform for healthcare.
Health tech company Artera secured $65 million in December to fuel further expansion and build out AI agents for patient communications. UnityAI is developing agentic AI solutions to automate operational and administrative workloads in outpatient and clinical settings.