UPDATE: Former Eli Lilly executive Michelle Carnahan has successfully raised $52 million in seed funding for her new healthcare AI startup, Arbiter. The company, which aims to streamline healthcare operations through advanced technology, has a valuation of $400 million, according to Business Insider.
In a bold move, Carnahan has opted out of traditional venture capital funding, instead securing investments from multiple family offices, including TriEdge Investments and MFO Ventures. This funding strategy reflects her desire for more than mere capital; she seeks partners who can accelerate Arbiter’s market entry and enhance its technological capabilities.
Arbiter, which launched only six months ago, already boasts a platform active with over 1,000 clinicians. The startup enables healthcare providers to automate essential administrative tasks, such as referrals and appointment scheduling, thereby improving efficiency and patient care.
Carnahan’s extensive background includes a 26-year career at Eli Lilly and leadership at the VC-backed healthcare startup Thirty Madison, where she witnessed the highs and lows of venture funding. She stated, “This gives us not only a knowledge advantage but a distribution advantage in partnerships that would take years to develop.”
The acquisition of a data platform from SecondWave Delivery Systems has further expedited Arbiter’s progress, allowing the company to integrate patient data from various medical records. This software aids healthcare providers in evaluating patient health risks, facilitating better treatment decisions.
Arbiter’s first application leverages AI agents to proactively engage with patients, scheduling appointments and following up post-visits. This technology is now live with several health plans, marking a significant step in enhancing patient engagement.
Carnahan has ambitious plans for Arbiter’s future, aiming to launch a unified “operating spine” for healthcare in collaboration with a major national payer and provider network next year. “Everyone keeps building new instruments for the orchestra. There’s a prior auth tool here, an analytics dashboard there, but no one’s building the conductor. Arbiter is that conductor,” she emphasized.
As the startup looks ahead, it is also considering further acquisitions to bolster its growth, targeting solutions with a robust data strategy. With aspirations to transition healthcare from reactive to proactive, Arbiter plans to utilize predictive AI modeling to forecast critical health events.
Facing competition from various AI-powered startups, including Hippocratic AI and DexCare, Arbiter has assembled a formidable team of advisors. Notable figures include Dr. Clive Fields, cofounder of VillageMD, and Dr. Ainsley MacLean, a former chief medical information officer at Kaiser Permanente.
As the healthcare landscape continues to evolve, Arbiter’s innovative approach and strategic funding could position it for significant impact in the industry. Keep an eye on this developing story as Carnahan and her team aim to reshape the future of healthcare operations.
