Flagler Health Raises $50M To Transform MSK Care With AI

Flagler Health has secured $50 million in Series B funding to enhance its AI-powered platform for musculoskeletal healthcare. The funding, led by Bessemer Venture Partners, will be utilized to expand the platform across United States musculoskeletal practices. Flagler's technology aims to streamline various processes, ranging from triage and care management to billing and patient communications, within the patient lifecycle.

Founded by healthcare professionals who encountered operational challenges firsthand, Flagler's platform integrates clinical and administrative workflows with existing electronic medical record systems. Musculoskeletal conditions affect over half of U.S. adults and contribute to more than $400 billion in annual healthcare spending.

Despite the market's size, these practices continue to grapple with fragmented systems and significant administrative workloads, with physicians often spending nearly 75% of their time on revenue-generating tasks. Flagler seeks to address these issues through an AI layer that operates within current healthcare infrastructure, requiring no additional logins, training, or workflow alterations.

The company's platform features AI-assisted revenue cycle management, prior authorization, billing, patient engagement, care management, and automated referral processing. An AI agent can process inbound electronic referrals to facilitate patient scheduling. Flagler Health has scaled its AI-powered infrastructure to serve thousands of providers across more than 36 states in less than three years.

The technology has been trained using a vast dataset of musculoskeletal patients and supports workflows in triage, care management, billing, and patient communications. By addressing the infrastructure supporting musculoskeletal care, Flagler aims to automate multiple connected processes, leading to an average of $164,000 in additional annual revenue per provider and improved patient outcomes, as reported by 87% of patients.

This strategy enables Flagler to automate various processes instead of focusing on a single administrative task. Albert Katz, CEO of Flagler Health, highlighted the company's experience operating MSK clinics, which revealed structural problems affecting clinicians and practice margins. He emphasized that the challenge extends beyond individual workflows to encompass the entire healthcare system.

The new capital enables Flagler to expand its platform across the fragmented U.S. healthcare market and develop AI capabilities to cover broader operational processes. Steve Kraus, a partner at Bessemer Venture Partners, noted that Flagler combines healthcare operations experience, clinical expertise, and AI capabilities, with early traction demonstrating its potential across the MSK market.

With healthcare providers increasingly exploring AI beyond documentation and transcription, many platforms are targeting administrative workloads that consume clinician time and increase operating costs. Flagler's broader approach, connecting multiple processes around the patient, could allow practices to automate referrals, communications, authorizations, billing, and follow-ups through a unified operational layer.

The company will now concentrate on expanding deployments while ensuring consistent financial and clinical outcomes at a larger scale.