Ethermed announced it has raised $8.5 million in a Series A funding round, bringing its total funding to more than $15 million, as it looks to expand its AI-powered platform for prior authorization and medical necessity workflows.
The round was led by Enfield Capital Partners and Blue Marlin Partners, with participation from Jumpstart Ventures, Healthliant Ventures, Woodard Family Office, and Gaingels. The new capital will support platform expansion, engineering growth, and deeper partnerships with health systems nationwide.
Ethermed is focused on addressing administrative inefficiencies in healthcare, particularly in prior authorization processes that often delay patient care and burden providers. Its platform uses advanced language models and clinical reasoning to review documentation, interpret payer requirements, and generate compliant submissions in seconds, reducing approval timelines from days to minutes.
The company has already integrated with leading electronic health record systems and processed millions of prior authorization transactions. Its growing customer base spans both providers and payers, with early results showing reduced denial rates and lower administrative workload for healthcare staff.
With nine health system customers already onboard, Ethermed plans to use the Series A funding to accelerate its go-to-market strategy, expand its data science and engineering teams, and strengthen partnerships across the healthcare ecosystem.
The investment reflects increasing demand for AI-driven solutions that can streamline complex healthcare workflows while improving speed, accuracy, and patient access to care.
KEY QUOTES:
“Prior authorization is one of those problems everyone in healthcare complains about, but very few companies actually solve in a practical way. What stood out to me about Ethermed is that the team understands how healthcare really works and built something that fits into it, rather than trying to replace it. That’s why I’m excited to support the company at this stage.”
Karenann Terrell, Board Member, Ethermed And Managing Director, Blue Marlin Partners
“Administrative complexity continues to drain billions from healthcare each year. Ethermed was built to eliminate the friction between payers and providers by amplifying clinical judgment through automation that truly understands medicine. This funding allows us to scale our AI engine and bring relief to care teams and patients across the country.”
Dan Friedman, CEO And Co-Founder, Ethermed
“Prior authorization is a constant headache for our teams. Ethermed caught our attention because they’ve built something that fits into how health systems actually operate, and the traction they’ve gained with customers speaks for itself. We’re excited to support what comes next.”
Steve West, Managing Director Of Healthliant Ventures, Tanner Health
“Ethermed’s technology directly addresses one of the most painful bottlenecks in healthcare. By combining deep clinical intelligence with scalable automation, Ethermed is redefining how prior authorization can work, fast, compliant, and patient-centered.”
Todd Stern, CEO, Enfield Capital Partners
