The company closed on a $4.6 million seed investment led by Maverick Ventures to build an AI-powered healthcare pricing and management platform.
SAN FRANCISCO, May 16, 2024–(BUSINESS WIRE)–Daffodil Health, an AI-powered healthcare pricing and management solution, today announced seed funding led by Maverick Ventures with participation from Epic Ventures. It announced that it had raised $4.6 million in a round. .
This funding announcement comes at a time when more than $1 trillion is being spent on healthcare administration, much of it wasted and with limited or no benefit to patients. Technologies such as AI and large-scale language models make it possible to hyper-automate healthcare processes and eliminate intermediaries.
The company was founded by a group of healthcare and technology experts with over 100 years of healthcare and software integration experience at companies such as MultiPlan, Google, and McKinsey. They believe that change in the way healthcare organizations price and bill is not only possible, but urgently necessary.
“We are no doubt that truly reducing healthcare administrative spending is difficult, and that many well-funded companies and entrepreneurs have so far had limited success in this area. We also recognize that,” said Navin Nagia, CEO of Daffodil Health. “We also strongly believe that what we do needs to be done. Our first application, a SaaS-based, AI-enabled OON/RBP re-pricing tool, This is an important first step in our mission.”
The company's first goal is to fully automate and enable AI for out-of-network (OON) and reference-based pricing (RBP) processes for payers and third-party administrators (TPAs). Daffodil is specifically focused on enabling automation and AI for re-pricing, benchmarking, and defending plans' out-of-network claims.
Daffodil's SaaS-based, AI-powered solutions enable you to:
Real-time claim repricing based on payer or TPA preferred pricing methodology
Easily set up complex pricing rules
Auto-benchmarking re-pricing and
Generate detailed and defensible pricing rationale using AI/LLM models
The company offers the above as a cloud-native SaaS solution, which is extremely easy to use and provides increased productivity and significant cost savings. Through early and close collaboration with digitally forward-thinking and innovative payers and TPAs, this application is expected to go live in multiple implementations in the coming months.
“The complex challenges of out-of-network repricing require innovative solutions that combine simplicity and efficiency,” said Personphi Health, a provider of health insurance plan management and cost containment solutions. said Andrew Boyd, the company's executive vice president and general manager of healthcare solutions. “With his end-to-end, AI-driven approach, there is an opportunity to streamline these processes and deliver significant cost savings and operational efficiencies for TPAs and payers.”
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“The out-of-network billing dilemma has reached a fever pitch in recent years, with everyone from payers to TPAs to employers recognizing it as an oligopoly with no winners,” Maverick Ventures said. Managing Director Pratyesh Maheshwari said. “Daffodil is boldly tackling this problem through cutting-edge AI, transforming claims adjudication and reducing administrative costs. The opportunity to revolutionize claims processing and communications is here.”
For more information, please visit www.daffodilhealth.co.
About the health of daffodils
Daffodil was founded by a group of passionate healthcare and technology professionals with the noble mission of using technology, data, and AI to automate healthcare pricing processes and reduce administrative spending. The company's first application, his AI/LLM-enabled SaaS Repricer, was released in 2024. The application focuses on automating the out-of-network (OON) and Reference Based Pricing (RBP) re-pricing process end-to-end.
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