Summary:
Tennr raises $101M Series C at a $605M valuation to fix patient referrals
Founded in 2021, Tennr addresses delays and denials in the U.S. healthcare referral system
Uses a proprietary AI model trained on millions of medical documents
Focuses on eligibility checks, benefits verification, and payer rules interpretation
Plans to expand into new medical subverticals and insurance verification tools
Tennr, a New York-based health tech startup, has recently secured a $101 million Series C funding round, valuing the company at $605 million. This round was led by IVP, with participation from existing investors including Andreessen Horowitz, Lightspeed, and Iconiq. The startup, founded in 2021 by Diego Baugh, Trey Holterman, and Tyler Johnson, aims to tackle the patient referral process, a notorious bottleneck in the U.S. healthcare system.
The Problem: A Broken Referral System
Diego Baugh's personal experience with the referral system highlighted its inefficiencies. After being hospitalized with stomach issues, he waited six weeks for a specialist appointment, only to be hospitalized again due to the delay. This issue is widespread, with more than half of referred patients never making it to the next step in their care.
Tennr's Solution: AI-Powered Efficiency
Tennr has developed a proprietary AI model trained on tens of millions of medical documents to streamline the referral process. The system automates tasks like eligibility checks, benefits verification, and payer rules interpretation, ensuring patients receive timely care.
Why Tennr Stands Out
Unlike general AI models, Tennr's technology is hyper-specific to healthcare referrals, making it more effective for this use case. CEO Trey Holterman emphasizes that the focus is on solving problems, not just leveraging AI. The company complies with HIPAA regulations through de-identification of patient data.
Future Growth
IVP partner Zeya Yang sees potential for Tennr to expand into new subverticals within medical specialties and develop tools for insurance verification. The company is already working on a network feature to provide visibility into the referral and payment process for both physicians and patients.
Financial Success
While specific figures aren't disclosed, Tennr reports eight-figure revenue, tripling since its Series B round in October. Holterman believes Tennr's specialized approach will outperform generic AI solutions, ensuring patients actually receive the care they need.
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