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Honey Health Raises $7.8 Million to Transform Healthcare Administration

In a significant stride towards revolutionizing healthcare operations, Honey Health, an innovative all-in-one back office AI platform, has successfully secured $7.8 million in seed funding. The financing was led by Pelion Ventures with contributions from Streamlined, Burst Capital, and 8-Bit Capital. This financial boost will facilitate the expansion of their specialized AI agent teams, which are designed to independently manage intricate administrative processes, providing much-needed relief to healthcare organizations strained by operational inefficiencies.

With healthcare systems dealing with unprecedented challenges—such as a staggering turnover rate of 33-40% among non-clinical staff and rising administrative workloads—Honey Health aims to address these issues head-on. Traditional solutions often tackle only parts of the problem, requiring endless oversight and often resulting in disjointed efforts that leave care teams overwhelmed and patients waiting for necessary services. Honey Health holds the promise of delivering a radically different approach.

Matt Faustman, co-founder and CEO of Honey Health, stated, "Healthcare organizations are trapped between two ineffective models: point solutions that only address narrow tasks and an ongoing struggle to recruit and maintain back-office personnel. Our solution is to deploy AI agent teams that function autonomously in the background, completing entire workflows without adding to our customers' administrative burdens. They can wake up to completed tasks instead of new ones piling up."

Since its launch in December, Honey Health has partnered with over a hundred medical groups and health systems. Clients are witnessing annual profit increases ranging from $50,000 to $65,000 per provider due to reduced backfill expenses for frequently vacated roles and the enhanced efficiency achievable through the platform. This allows organizations to expand their revenue-generating capabilities without a corresponding increase in back-office personnel, significantly improving operational scalability.

An endorsement from Dr. Kashif Latif, co-owner of AM Endocrinology in Memphis, highlights the efficacy of Honey Health: "Using Honey Health is like magic; our back-office tasks are handled seamlessly within our electronic health records (EHR), as if a dedicated staff member had completed them."

Specifically engineered for mid-market healthcare organizations, Honey Health addresses the typical challenges encountered by these entities, such as varied EHR systems and limited IT resources, compounded by a hodgepodge of tools that are often not well-integrated. Unlike copilot solutions that necessitate human oversight or external platforms that require extra management efforts, Honey's AI agents operate similarly to skilled staff members, capable of logging into systems, navigating software interfaces, and completing entire workflows autonomously.

Among the numerous functions that Honey's AI agents can perform are:

• - Data Fetching: Automating the retrieval of data from various external sources including lab results and devices.
• - Note Preparation: Drafting patient notes and charts in advance of visits.
• - Ordering and Refills: Managing post-visit orders and medication refills.
• - Fax Triage: Sorting, routing, and filing faxes while extracting significant information.
• - Prior Authorizations: Overseeing the complete process of obtaining necessary authorizations.

Honey's proprietary Loop Framework and Hive Protocol enable its AI agents to integrate with most EHR systems in under 30 days, tailoring themselves to the unique workflows of each healthcare team and performing tasks that historically required multiple point solutions. This represents a significant advantage for multi-service organizations (MSOs) and healthcare systems managing diverse platforms.

Founded by Faustman and Xiao Zhang, former leaders in AI, product, and engineering at LinkedIn, Honey Health emerges from a collective personal commitment to addressing chronic disease challenges tied to operational inefficiencies. Having dealt with such issues personally, both founders understand the critical need for streamlined administrative solutions.

Tyler Hogge, Partner at Pelion Ventures, speaks to the evolving landscape of healthcare technology, stating, "The market is fatigued with solitary solutions that complicate rather than resolve issues. The future lies with integrated platforms capable of autonomously orchestrating entire workflows across multiple systems. Honey signifies this next evolution where AI does not merely assist but completes tasks comprehensively. It’s not an incremental improvement; it’s a complete transformation."

The recent funding round will bolster Honey Health's capabilities, accelerate customer growth, and expand its team, ensuring that the company continues to set new standards in healthcare administration efficiency. Going forward, Honey Health not only aims to streamline operations but to redefine what is possible within healthcare technology.

To learn more about Honey Health and its innovative solutions, please visit www.honeyhealth.ai.