Flagler Health, a developer of an AI-driven medical practice management system for musculoskeletal (MSK) care providers, has raised a $50 million Series B, bringing total funding raised to $63 million.
This is the largest funding round for a healthcare practice management software startup focusing on musculoskeletal care.
The Series B round was led by Bessemer Venture Partners, with participation from SignalFire, Alumni Ventures, Streamlined, 186 Ventures, Proof VC, Tribeca Ventures, and Offscript.
According to data provided by Flagler Health, musculoskeletal conditions affect more than half of adults in the U.S. and account for over $400 billion in annual healthcare spend. Despite that $44 billion spent, the musculoskeletal care delivery system remains inefficient.
Physicians spend nearly 75 percent of their time on non-revenue-generating work, from documentation to administrative tasks.
With fresh Series B funds, Flagler Health plans to automate that non-revenue-generating work, from documentation to administrative tasks. So that physicians can spend more time on caring for their patients.
The startup is building and deploying an AI-native operating system for musculoskeletal care – the largest and most underserved specialty in healthcare in the U.S. Its AI-driven operating system for musculoskeletal care, trained on one of the largest MSK patient data sets, integrates directly into existing EMRs and workflows, orchestrating the full patient lifecycle, across triage, care management, billing and patient communications, turning manual, reactive clinics into coordinated, data-driven operations.
Flagler Health already operates in 36 states in the U.S. and is planning to scale its business operations across all states. Flagler Health, in the official press statement, said: “The new funding accelerates its expansion across every MSK practice in America.”
Digital health startups, including musculoskeletal practice management solutions providers, have raised $200 billion in funding to date. More recently, Commure, a developer of AI software agents to automate repetitive healthcare workflows, raised $70 million in a new funding round at a post-money valuation of $7 billion.
In another deal, Luminai, a provider of an AI- powered healthcare workflow automation platform, raised $38 million in a Series B funding round, bringing its total funding to date to $60 million.