Flagler Health has raised US$50m in Series B funding to expand its AI software for musculoskeletal (MSK) care clinics across the US.
The software covers triage, care management, billing and patient communications and now serves thousands of providers across more than 36 states.
The Series B was led by Bessemer Venture Partners, with SignalFire, Alumni Ventures, Streamlined, 186 Ventures, Proof VC, Tribeca Ventures and Offscript also participating.
The round brings Flagler’s total funding to US$63m.
Albert Katz, chief executive of Flagler Health, said: “Shrinking reimbursements, administrative overload, inefficient triage, I watched it destroy clinician morale and clinic margins at the same time.
“This isn’t a workflow problem. It’s structural.
“The cost of running these clinics keeps climbing, and that cost is a major reason American healthcare is so expensive. It’s unsustainable, and we’re the only platform built to fix it at the root.”
Musculoskeletal conditions affect more than half of adults in the US and account for more than US$400bn in annual healthcare spending.
Flagler says physicians in MSK practices spend nearly 75 per cent of their time on work that does not generate revenue, including documentation and administrative tasks.
The platform connects directly to existing electronic medical records and workflows rather than requiring clinicians to use separate systems.
Flagler says it was trained on one of the largest MSK patient datasets and manages the full patient lifecycle without requiring new logins, additional training or changes to existing clinical workflows.
The company reports that 87 per cent of patients show improvements in pain, mood, sleep or mobility, while the platform generates an average of US$164,000 in additional annual revenue per provider.
Steve Kraus, a partner at Bessemer Venture Partners, said: “What drew us to Flagler was rare: a founding team with exactly the right combination of healthcare operations experience, clinical authority, and AI expertise, all applied to one of the largest and most underserved markets in healthcare.
“The traction and ROI they’ve built in under three years reflects that.
“Flagler is the only full-stack platform purpose-built for MSK, and we believe it’s on its way to becoming the AI-native operating system for every clinic in this space.”
Flagler said it will use the Series B funding to accelerate expansion across MSK practices nationwide.
