Artificial intelligence platform Flagler Health banked $50 million in series B funding to continue building out its AI-native operating system for musculoskeletal (MSK) care.
Bessemer Venture Partners led the funding round, with participation from SignalFire, Alumni Ventures, Streamlined, 186 Ventures, Proof VC, Tribeca Ventures and Offscript.
“What drew us to Flagler was rare: a founding team with exactly the right combination of healthcare operations experience, clinical authority, and AI expertise, all applied to one of the largest and most underserved markets in healthcare,” said Steve Kraus, Bessemer Venture Partners partner, in a statement. “The traction and ROI they've built in under three years reflects that. Flagler is the only full-stack platform purpose-built for MSK, and we believe it's on its way to becoming the AI-native operating system for every clinic in this space.”
The startup has raised $63 million to date, according to a press release.
Musculoskeletal conditions affect more than half of adults in the U.S. and account for over $400 billion in annual healthcare spend, but there are major inefficiencies in care delivery. Physicians spend nearly 75% of their time on non-revenue-generating work, from documentation to administrative tasks, according to the company.
Flagler was developed to fix this infrastructure, not just the workflow. The company says its platform is trained on one of the largest MSK patient datasets and integrates directly into existing electronic medical records (EMRs) and workflows. The platform orchestrates the full patient lifecycle, across triage, care management, billing and patient communications, turning manual, reactive clinics into coordinated, data-driven operations, according to executives.
The AI-native platform has scaled to thousands of MSK providers across more than 36 states, and executives say it generates an average of $164,000 in additional annual revenue per provider. Moreover, 87% of patients report improvement in pain, mood, sleep or mobility.
“Flagler tracks patient outcomes remotely—zero workflow change: no new logins, no training, no extra clicks,” said Christopher Netzel, M.D., Coastal Health interventional pain physician, in a statement. “Fully hands-free, turnkey, runs in the background.”
Flagler Health plans to use the funding to accelerate expansion across MSK practices across the nation.
CEO Albert Katz said in a statement that MSK is “where the healthcare system's dysfunction is most visible.”
“Shrinking reimbursements, administrative overload, inefficient triage - I watched it destroy clinician morale and clinic margins at the same time,” Katz said. “This isn't a workflow problem. It's structural. The cost of running these clinics keeps climbing, and that cost is a major reason American healthcare is so expensive. It's unsustainable, and we're the only platform built to fix it at the root."