Funding advances mission to achieve 1 billion hours of automation by 2025 to streamline healthcare administration
Today, veda, an artificial intelligence (AI) and machine learning platform that can save healthcare payers and providers up to 90 percent in administrative costs by enhancing the processing speed and accuracy of information, announced the close of $45 million in Series B funding led by Oak HC/FT.
The funding will enable veda to accelerate its growth and further its mission to help health plans focus on the health and well-being of its members, rather than burdensome administrative processes. To date, veda has supported some of the country’s largest health insurance companies in their efforts to automate administrative processes. In 2021, the company is expected to save health plans 500,000 hours in provider data processing time. For example, veda’s leading technology enabled a Medicaid health plan to automate file processing, which reduced manual entry by 90 percent and reduced time spent on processing from four weeks to 24 hours.
“There’s an urgent need for automation in healthcare to reduce inefficiencies and upwards of $1 trillion in unnecessary costs,” said Meghan Gaffney, veda’s co-founder and CEO. “The acceleration of health technology this past year, combined with legislative imperatives such as the No Surprises Act, are positioning veda as an indispensable partner for payers. With this new funding, we’ll be better positioned to seize new opportunities through our range of solutions and address a host of critical industry needs.”
The funding will allow veda to scale immediately and rapidly to address imminent regulatory requirements of the No Surprises Act. The bipartisan legislation restricts excessive out-of-pocket costs to consumers from surprise billing and balance billing. Starting January 1, 2022, the law will require that all provider directory updates be processed in under 48 hours. Veda offers the only AI platform where payers can transform and ingest provider rosters rapidly, reducing turnaround times from weeks to just 24 hours.
“Veda's technology will fundamentally change how the healthcare system operates by automating processes, increasing accuracy, and reducing costs that have existed for decades,” said Andrew Adams, managing partner and co-founder at Oak HC/FT, who will join veda’s Board of Directors. “We’re thrilled to partner with the veda team in their effort to modernize the largest sector of the U.S. economy at such a critical time.”
The announcement comes on the heels of record growth for the company over the past 1.5 years. Veda’s customer base of health plans and partners is expected to increase 7-fold by Q4 of 2022. The funding will immediately impact product innovation, customer success, and go- to-market efforts.
Veda saves healthcare companies millions annually by automating complex data processes. Our systems enable customers and partners to harness the power of their own data—process, validate and generate meaningful answers that make healthcare more efficient and accessible. Veda enables organizations to dramatically reduce overhead costs by automating complex business rules for data extraction, transformation, and loading (ETL); creating a simplified and streamlined experience for everyone—from the data entry specialist to the end customer. The company is headquartered in Madison, WI. To learn more about veda, visit vedadata.com and follow us on LinkedIn and Twitter.
About Oak HC/FT
Founded in 2014, Oak HC/FT is the premier venture growth-equity fund investing in Healthcare Information & Services("HC") and Financial Services Technology ("FT"). With $3.3billion in assets under management, we are focused on driving transformation in these industries by providing entrepreneurs and companies with strategic counsel, board-level participation, business plan execution and access to our extensivenetwork of industry leaders. Oak HC/FT is headquartered in Greenwich, CT, with offices in Boston and San Francisco. Follow Oak HC/FT on Twitter, LinkedIn, and Medium.