Phare Health, a startup situated in London, has raised £2.5M (around €2.87M) in a seed funding round, with General Catalyst taking the lead in the investment.
The company receives strategic backing from KHP Ventures and Bertelsmann Investments, offering valuable industry know-how, broad European networks, and a wealth of healthcare resources.
Specializing in sophisticated AI solutions, Phare Health focuses on aiding hospitals with financial management and cash flow monitoring.
Phare Health plans to allocate the funding towards advancing AI innovation, further development, and forging partnerships both with the UK’s National Health Service (NHS) and on a global scale.
The company’s goal is to develop a real-time, proactive intelligence engine for healthcare systems, utilizing structured data. This initiative is aimed at bolstering financial stability, ultimately benefiting patients, healthcare staff, and the healthcare system as a whole.
Additionally, the investment will facilitate team growth, enabling Phare Health to hire AI and healthcare specialists in crucial markets.
Revolutionizing Healthcare Back-Office Operations
In recent years, healthcare systems have been under financial strain, leading hospitals to enact significant cost cuts. The UK’s National Health Service (NHS) faces a multitude of challenges, such as a backlog worsened by the pandemic, strikes by medical staff, and aging infrastructure.
By 2023, it’s anticipated that over a third of NHS integrated care systems will face deficits, possibly causing cutbacks in recruitment and service improvement initiatives, adversely impacting patients and furthering operational inefficiencies.
Phare Health’s mission is to enhance global healthcare systems by utilizing AI for non-clinical tasks. This is particularly relevant in the UK, where the NHS annually spends £2.7B on administrative costs, and in the US, where administrative staff outnumber clinical personnel by a 10-to-1 ratio.
The company’s initial product leverages large language models to extract high-quality data from clinical documentation, assisting hospitals in resource management and cost recuperation.
Phare Health’s primary goal is to ensure precise reimbursements for NHS Trusts by improving visibility and transparency in hospital processes.
The startup’s AI solution processes clinician notes, transforming them into structured data that can be used by administrative, operational, and financial teams. This strategy is designed to close the gap between clinical care and hospital management, providing hospital leaders with greater insight and transparency.
Such an approach not only enables more effective resource distribution across healthcare systems but also fosters a clearer understanding of patient treatments, leading to enhancements in care standards.
Overview of Phare Health’s Leadership Team
The leadership of Phare Health includes co-founders and co-CEOs Dr. Martin Seneviratne and Lee Kupferman, as well as CTO Tymor Hamamsy. This team combines in-depth knowledge of large language models with practical clinical experience.
Both Dr. Seneviratne and Kupferman have worked on projects with DeepMind Health and Google Health, partnering with the NHS on ventures such as AI screening for breast cancer and the development of MedPalm, a medical AI assistant.
Before his involvement with DeepMind Health, Dr. Seneviratne practiced medicine in Australia, bringing essential healthcare insights to the team.
CTO Tymor Hamamsy has been at the forefront of AI research at institutions like Stanford and NYU.
Integrating AI and Deeptech into Healthcare Solutions
Phare Health, established by veterans from DeepMind, Google Health, and Stanford, is at the forefront of merging hospital administration and revenue cycle management with GPT-era technology.
The venture’s initial focus is an AI assistant to improve the accuracy and efficiency of medical coding. This innovation aims to reduce hospital expenses, enhance reimbursements, and transform unstructured clinical notes into a structured, accurate health data repository.
Co-founder Tymor Hamamsy remarks, “The buzz around large language models (LLMs) has soared with ChatGPT’s public emergence, but these tools offer more than just advanced search capabilities.”
Hamamsy points out, “The administrative sector of healthcare is rife with unstructured data that’s hard to navigate. AI has the potential to revolutionize healthcare management by illuminating and making this data accessible to health system leaders.”
“We’re just beginning this transformation, and the NHS has the potential to lead the way,” Hamamsy adds.
Phare Health is also looking to expand its influence into other administrative and revenue management aspects, aiming to uncover more cost-saving opportunities and maximize the benefits of structured data.
Co-founder Dr. Seneviratne shares, “During my early medical career in Sydney and London, the most disheartening aspect was the time spent on administrative tasks at the expense of patient care.”
“While AI’s clinical applications are widely discussed, the immediate need for AI in administrative tasks is more pressing. It can undertake low-risk, manual tasks, freeing clinicians to focus more on patient care.”
Dr. Seneviratne concludes, “AI in healthcare should operate discreetly, enhancing efficiency and safety without interfering with the work of doctors and nurses.”