Opmed.ai, the AI optimization platform for healthcare, announced the successful funding of $15 million in Series A funding. The funding round was co-led by NFX and Grove Ventures, with Secret Chord Ventures, the Impact investor Sir Ronald Cohen, and Unbox Ventures also participating.
This funding announcement comes amid a healthcare labor shortage and rising hospital labor costs. Operating rooms (ORs) account for a large percentage of hospital costs and generate a majority of revenue. However, OR scheduling tends to be inefficiently produced using data spreadsheets or other manual solutions.
Using advanced AI technology, Opmed.ai optimizes healthcare operations (starting with ORs). And the company’s optimization engine runs billions of permutations in seconds and is tailored to make predictions based on industry-specific factors, automatically generating alternative schedules that significantly improve resource allocation. Given that the potential revenue of each unused minute is $50 to $150 and that empty ORs carry a cost of $1,000 for each unused hour, the impact of technology goes a long way. By implementing Opmed.ai, hospitals generate over $1 million more per OR while reducing costs by $500,000 annually.
Despite OR and healthcare settings complexities, the Opmed.ai platform carries an implementation of only two to four weeks. After implementation, it detects over and under-estimations and accounts for gaps, anesthesia time, turnover time, and more factors. Subsequently, it generates optimized alternative plans taking into account staff, equipment, preferences, add-ons, and more factors that a scheduling professional can choose from and implement in only a few clicks. This platform enables planners to generate longer-term quarterly and yearly block allocation plans to increase OR utilization by 10% and generate cascading savings and revenue. The ROI for hospitals typically takes only 3-4 months.
Opmed.ai is already deployed by leading hospitals and healthcare centers in the US and Israel, and it collaborates with leading health systems such as the Mayo Clinic.
KEY QUOTES:
“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. 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.”
– Renana Ashkenazi, General Partner of Grove Ventures
“Opmed.ai’s team is applying their deep knowledge and expertise in health tech to solve critical inefficiencies and serious staffing shortages. We’re excited to support Opmed.ai as they improve OR experiences for doctors and patients alike and continue to improve modern healthcare.”
– Gigi Levy-Weiss, a founding partner at NFX
“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. 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.”
– Dr. Mor Brokman Meltzer, Co-Founder & CEO of Opmed.ai
“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,” explained
– Avi Paz, Co-Founder & CTO, Opmed.ai
