Third Way Health (TWH), an AI-enabled services partner for healthcare organizations, announced it has raised an oversubscribed $15 million Series A funding round led by Health Velocity Capital, with Partner Kristin Torres Mowat leading the investment. With the new capital, the company’s total funding now stands at $22.5 million, supporting continued product investment and operational scale.
Based in Los Angeles, Third Way Health is focused on modernizing healthcare front-office operations amid growing administrative complexity, outdated technology, and fragmented workflows. These pressures have contributed to staff burnout, delayed patient care, and mounting financial strain across healthcare practices and health systems.
The company delivers a hybrid human-and-AI operating solution that supports healthcare practices collectively serving more than 5 million patients annually. Third Way Health provides end-to-end front-office services, including scheduling and prior authorization, through a white-glove implementation model that can transform operations in as little as 12 weeks. Dedicated teams are embedded directly within client workflows to create seamless and scalable operational support.
To date, the company reports that it has helped clients reduce front-office administrative costs by up to 40 percent, increase patient visits by an average of 11 percent, and cut phone wait times in half. The platform integrates targeted automation with hands-on operational expertise, aiming to improve both financial performance and patient experience.
The new funding will be used to accelerate customer growth, expand the company’s operational footprint, and further advance its automation roadmap. Third Way Health plans to scale its sales and implementation teams, deepen its AI capabilities, and enhance its platform to support a growing customer base.
This marks the company’s first public funding round and follows a strategic investment in 2025 from Astrana Health, Inc. (ASTH) and MedPOINT Management, Inc. (MPM).
Health Velocity Capital invests exclusively in healthcare software and services companies and brings decades of experience backing category-defining healthcare businesses.
KEY QUOTES:
“No patient should have to wait on the phone when they need care. Automation, including AI, can make a real difference in facilitating those interactions, but our clients choose our solution not just for the sake of having better technology, but because we are helping them improve outcomes, including the patient experience and top-line growth. This funding will give us the resources to scale what we know already works and expand our reach.”
Timm Schneider, Co-Founder And Chief Operating Officer, Third Way Health
“Healthcare providers are under significant administrative and financial pressure, and front-office operations are often a source of friction for both patients and clinicians. While AI will play an important role in improving these workflows, it is not a standalone solution. Third Way Health has built a scalable operating model that integrates high-quality operations with targeted automation to improve cost, reliability, and patient access. Just as importantly, the team brings deep operational experience and a practical understanding of the day-to-day realities medical practices face. We believe this pragmatic integration of people and technology positions the company well in a large and underserved market.”
Kristin Torres Mowat, Partner, Health Velocity Capital
“The future of healthcare includes AI, but AI does not replace humans. We are at an inflection point where intelligent automation can truly optimize practices, freeing healthcare providers to focus on patients. Healthcare practices are ready for solutions that offer sustainable growth, and we are excited to lead the charge. We operate as a true extension of our customers’ teams, moving at their pace, absorbing operational volatility, and advocating relentlessly for what’s best for the practice so that every partnership delivers a genuine win-win. With this funding, we can continue redefining front-office operations and patient care.”
Frederik Mueller, Co-Founder And CEO, Third Way Health
