Humata Health, a company focused on simplifying the prior authorization process in healthcare, has secured $25 million in a funding round. The investment, led by Blue Venture Fund (the VC arm of many Blue Cross Blue Shield companies) and LRVHealth, along with participation from Optum Ventures, .406 Ventures, Highmark Ventures, and VentureforGood, will fuel further development of Humata’s AI-powered solutions.
Prior authorization, a process requiring healthcare providers to obtain approval from insurers before certain treatments or procedures are performed, can be a complex and time-consuming burden for both providers and patients. Humata’s technology uses machine learning to streamline this process. Their products recommend necessary documents for prior authorization submissions and identify potential reasons for claim denials, aiming to improve efficiency and accuracy.
“As a physician executive at Mayo Clinic, I learned both the challenging complexities and importance of the prior authorization process,” said Dr. Jeremy Friese, founder and CEO of Humata Health. Friese, a veteran in the healthcare AI space, previously led Olive, another healthcare AI company, before founding Humata.
“That’s why I founded Verata Health and now Humata Health to deliver a solution that combines the power of AI, automation and connectivity between payers and providers to create a frictionless process,” Friese continued in a statement. “Raising this investment from strategic investors that represent some of the nation’s largest and most innovative providers and payers is a testament to our approach and rapidly accelerates our trajectory to have a positive impact for patients and the healthcare system.”
The funding round highlights the growing interest in AI solutions to address inefficiencies in healthcare administration. Humata believes recent regulations from the Centers for Medicare and Medicaid Services (CMS) requiring faster turnaround times for prior authorization decisions will further increase demand for their services. These regulations aim to reduce administrative burdens on providers and ensure patients receive timely care.
With over 225 hospitals already using Humata’s products, the company is well-positioned to capitalize on the growing need for streamlined prior authorization processes. The $25 million investment will allow Humata to further develop their AI technology and expand their reach within the healthcare system.
