Sift Healthcare, a medical billing analytics and data science platform powered by artificial intelligence, closed a $2.8 million new funding round.
The funding round was led by Rock River Capital Partners, with existing seed investor Winnebago Seed Fund.
Sift Healthcare says a third of all medical bills go unpaid because of the out-of-pocket burden for the patient, putting more risk on providers. The company has developed an analytics platform that provides meaningful insight to healthcare providers on which patients are at high risk for paying their bills, which would allow them to predetermine what a patient can pay for.
Further, using its analytics platform, healthcare providers and insurance companies can decrease the number of denials for claims while increasing patient payment rates.
The Milwaukee-based startup was launched in 2018, with an initial seed investment of $665,000, which was led by the Winnebago Seed Fund, with additional investment from Jeff DeAngelis, president of Northwest Passage Capital.
With the latest round, the startup has raised over $4 million to date. It plans to use the new funds to expand its data science and data engineering teams to meet the growing sales demand and to further develop its AI-based solutions for the revenue cycle.
Sift has also partnered with State Collection, which is a leading healthcare receivables company.
“State has run rigorous tests with Sift, and the results we’ve seen have been significant. We’re excited to add the power of Sift’s data science and analytics to our tech stack,” said Tim Haag, President of State Collection Service,
He continued: “State has a long history of bringing best-in-class technology to the receivables industry, and Sift’s solutions will help further this commitment to innovation.”
Digital health analytics is one of the top investment areas for venture capitalists. According to Mercom Digital Health Funding Report, healthcare analytics companies raised over $800 million in the first half of 2020. Early, this year Komodo Health, a provider of AI-enabled data analytics software platform for healthcare providers, raised $50 million in Series C funding. Andreessen Horowitz led the round with participation from Oak HC/FT and existing investors: IA Ventures and Felicis Ventures.