Verata Health
AI-powered platform automating healthcare prior authorization processes.
| Date | Investors | Amount | Round |
|---|---|---|---|
| investor investor investor investor | €0.0 | round | |
$120m Valuation: $120m | Acquisition | ||
| Total Funding | 000k | ||
Verata Health was a Minneapolis-based healthcare technology company that developed an artificial intelligence platform to automate the prior authorization process for both healthcare providers and payers. Founded in 2017 by Dr. Jeremy Friese, a former Mayo Clinic physician executive, and Brent Backhaus, the company aimed to solve one of the most significant administrative challenges in healthcare. Dr. Friese's experience at the Mayo Clinic informed the company's mission to reduce the burdens and delays in patient care caused by inefficient prior authorization workflows.
The company's core product, the "Frictionless Prior Authorization" platform, integrated with electronic health record (EHR) systems to automatically initiate authorization requests, retrieve payer-specific rules, and submit the necessary clinical documentation. This AI-driven solution was designed to replace manual processes involving phone calls and faxes, thereby reducing administrative costs, minimizing claim denials and write-offs, and accelerating patient access to care. Verata Health served hospitals, health systems, and payers by streamlining both simple and clinically complex authorizations. The business model was based on providing this technology to clients to help them increase revenue and reduce administrative overhead.
In December 2020, Verata Health was acquired by Olive AI, a Columbus-based healthcare AI company, for a reported $120 million. The acquisition was part of Olive's strategy to create a comprehensive, end-to-end AI solution for prior authorizations. Following the acquisition, Verata's technology and its more than 60 employees were integrated into Olive. Dr. Jeremy Friese joined Olive as President, Payer Market. However, after a period of rapid growth and subsequent challenges, Olive AI ceased operations in October 2023, selling its assets to multiple companies, including Humata Health, a new prior authorization startup also founded by Dr. Friese.
Keywords: prior authorization automation, healthcare AI, revenue cycle management, EHR integration, physician-led, medical billing, patient access, clinical documentation, payer solutions, provider solutions, health administration, healthcare workflow, claims management, claims denial, Verata Health, Olive AI, Jeremy Friese, Frictionless Prior Authorization, medical authorization software, health tech