What You Should Know:
– Opmed.ai, the AI optimization platform for healthcare, announced today the successful raise of $15M in series A funding.
– The round was co-led by NFX and Grove Ventures, with Secret Chord Ventures, the Impact investor Sir Ronald Cohen, and Unbox Ventures also participating
Revolutionizing Healthcare Efficiency: Opmed.ai’s AI-Powered OR Optimization Solutions
The funding announcement arrives amidst a critical shortage in healthcare labor, with projections indicating a deficit of 3.2 million healthcare professionals by 2026. Meanwhile, hospitals grapple with escalating labor costs, which surged beyond 20% last year. Operating Rooms (ORs) constitute a substantial portion, accounting for 40% of a hospital’s expenses while generating 60-70% of its revenue, often serving as the primary driver of profitability. Nonetheless, the inefficiencies in OR scheduling, facilitated through archaic spreadsheets or predominantly manual methods, compound these challenges.
Enter Opmed.ai, specializing in optimizing healthcare operations, with a primary focus on OR efficiency, leveraging advanced AI technology. The company’s optimization engine rapidly assesses billions of permutations, customized to forecast based on industry-specific variables, automatically generating alternative schedules that vastly enhance resource utilization. Considering that each idle minute potentially translates to revenue losses ranging from $50 to $150, with empty ORs incurring costs of $1,000 per unused hour, the impact of this technology is profound. By adopting Opmed.ai, hospitals stand to gain over $1 million per OR in additional revenue annually, while concurrently slashing costs by $500,000 and fortifying resilience against unforeseen disruptions.
Despite the intricate nature of ORs and healthcare environments at large, Opmed.ai boasts an implementation timeframe of merely two to four weeks. Once deployed, it identifies over and underestimations, addresses gaps, anesthesia durations, turnover times, and other pertinent factors, subsequently generating optimized alternative plans. These plans account for staffing, equipment, preferences, add-ons, and various other considerations, streamlining the process for scheduling professionals with just a few clicks. Moreover, the platform facilitates the creation of longer-term quarterly and yearly block allocation plans, driving OR utilization up by 10% and yielding compounded savings and revenue. Remarkably, the return on investment for hospitals typically materializes within a mere 3-4 months.
Founded by Dr. Mor Brokman Meltzer, Avi Paz, and Prof. Baruch Barzel, Opmed.ai presents an innovative healthcare optimization engine, harnessing AI and network science to revolutionize healthcare scheduling and resource allocation, commencing with operating rooms.
“Opmed.ai is a perfect representation of the next generation of great AI platforms. They solve a complex issue with a highly specialized vertical solution that has no alternative that comes close,” said Renana Ashkenazi, General Partner of Grove Ventures. “Adding to the attractiveness of the investment is the fact that the ROI is so clear and significant, even from an early stage. We’ve seen the millions of dollars it has saved and generated in hospitals where it’s already deployed, and as impressed as we were, the hospitals’ enthusiasm has been even greater. We look forward to helping the Opmed.ai team rapidly expand in both the hospitals and use cases they serve.”
