HiLabs, an AI-powered health tech company helping plans improve member experience, raised $39 million in a series B financing round, led by growth equity firm Denali Growth Partners and VC firm Eight Roads Ventures.
The round also included funding from VC group F-Prime Capital, the company said.
Through its cloud-based MCheck platform, the company aims to reduce healthcare organizations' operational costs and improve patient outcomes. The platform, utilized by national insurers, can intake and summarize clinical data 100 times faster than humans, HiLabs claims.
More than four in five physicians in health insurer provider directories were found to have inconsistent entries, according to a research letter in JAMA. The study suggests a key component of the No Surprises Act is not being followed and enforced. HiLabs partners with health plans to help them better comply with the No Surprises Act, improve performance in Centers for Medicare & Medicaid Services (CMS) secret shopper-like audits and automate other administrative practices.
"Timely and high-quality data exchange between payers and providers is key to reducing care costs and improving outcomes," said Amit Garg, co-founder and CEO of HiLabs, in a statement. "As we embrace this next phase of growth, we're thankful for the backing of healthcare-focused investors. We stand poised to propel our AI technology forward, empowering healthcare organizations to make swift, informed decisions based on data that's not just clean, but readily available when it matters most."
Its provider director solution can analyze 80% of the country's providers. The company wants to expand the platform's capabilities to include EMR and value-based care data.
“Payers are increasingly looking for innovative technology solutions to make complex and disparate healthcare data actionable. The HiLabs team really impressed us with their vision, best-in-class product suite and strong customer traction, which is a testament to their product-market fit,” said Prem Pavoor, senior partner and head of India and healthcare investments at Eight Roads Ventures. "We have closely followed Amit's journey over the past couple of years as he has leveraged the U.S.-India corridor very effectively to build both a top-tier leadership team and deep artificial intelligence and machine learning talent in their India R&D centers."
Eight Roads Ventures is backed by Fidelity with offices across Asia, the UK and the U.S. It launched a $250 million healthcare and life sciences fund in 2022.