Opmed.ai Secures $15M to bring AI optimization to healthcare operations
The company says its AI technology is the first and only to proactively optimise healthcare operations, unlocking capacity, creating savings, additional revenue, and reduce wait time.
Opmed.ai, "the AI optimisation platform for healthcare", has announced the successful raise of 15 million USD in series A funding. The round was co-led by NFX and Grove Ventures, with Secret Chord Ventures, the Impact investor Sir Ronald Cohen, and Unbox Ventures also participating.
The funding announcement comes amidst a healthcare labor shortage, projected to be 3.2 million healthcare professionals by 2026 according to the company, and rising labor cost in hospitals. Operating Rooms (ORs) account for 40% of a hospital's costs, generate 60-70% of its revenue, and often serve as a primary source of profitability. However, inefficient OR scheduling carried out via dated spreadsheets or largely manual solutions exacerbate the issues.
Opmed.ai specialises in optimising healthcare operations, starting with ORs, through the application of advanced AI technology. The company’s optimisation engine runs billions of permutations in seconds and is tailored to make predictions based on industry-specific factors, automatically generating alternative schedules to improve resource allocation.
The company says that given that the potential revenue of each unused minute is 50-150 USD and that empty ORs carry a cost of 1,000 USD for each unused hour, the technology’s impact is enormous. By implementing Opmed.ai, hospitals generate an additional 1M+ USD per OR while reducing costs by 500,000 USD annually and remaining resilient in the face of unforeseen delays or events says the company.
Once implemented, it detects over and under-estimations and accounts for gaps, anesthesia time, and turnover time, among other factors. Subsequently, it generates optimized alternative plans taking into account staff, equipment, preferences, add-ons, and additional factors that a scheduling professional can choose from and implement in only a few clicks. The platform also allows planners to generate longer-term quarterly and yearly block allocation plans to increase OR utilisation by 10% and generate cascading savings and revenue. The ROI for hospitals typically takes 3-4 months.
“Opmed.ai is a perfect representation of the next generation of great AI platforms. They solve a complex issue with a highly specialized vertical solution that has no alternative that comes close,” said Renana Ashkenazi, General Partner of Grove Ventures. “Adding to the attractiveness of the investment is the fact that the ROI is so clear and significant, even from an early stage. We’ve seen the millions of dollars it has saved and generated in hospitals where it’s already deployed, and as impressed as we were, the hospitals' enthusiasm has been even greater. We look forward to helping the Opmed.ai team rapidly expand in both the hospitals and use cases they serve.”
“Opmed.ai’s team is applying their deep knowledge and expertise in health tech to solve critical inefficiencies and serious staffing shortages,” said Gigi Levy-Weiss, a founding partner at NFX. “We’re excited to support Opmed.ai as they improve OR experiences for doctors and patients alike and continue to improve modern healthcare.”
This round marks a significant milestone in that it provides us with the ability to rapidly scale an innovative technology, which has demonstrated success since 2021 and meet the demand that we’re already seeing from hospitals across the US," added Dr. Mor Brokman Meltzer, Co-Founder & CEO of Opmed.ai. "Our mission is to support hospitals grappling with staff shortages and other critical issues by providing them a less labor-intensive, more effective way to perform at their best, and that’s exactly what this round will enable us to accomplish.."
"For Opmed.ai, this funding is more than a financial milestone; it's a validation of our vision to revolutionize healthcare operations with cutting-edge AI and optimization technology. Our commitment remains firm: to empower healthcare professionals with solutions that not only address today's challenges but pave the way for a more efficient and effective future," said Avi Paz, Co-Founder & CTO, Opmed.ai.
Opmed.ai is already deployed by leading hospitals and healthcare centers in the US and Israel and is collaborating with leading Health Systems such as Mayo Clinic.