Cofactor AI, a developer of an AI-driven platform designed to assist hospitals in managing insurance claim denials, secured $4 million in seed funding.
Drive Capital led the investment round.
Cofactor AI, led by CEO Adi Tantravahi and CTO Juan Sebastian Lozano, has developed a platform called – Cofactor Denial Suite that integrates with EHR systems and clearinghouses and instantly finds the exact contextual information required to generate winning appeals. Using its proprietary medical-native foundation model, the platform reviews clinical evidence, coding guidelines, standard of care guidelines, and peer-reviewed studies, and identifies discrepancies between claims, medical documentation, payer policies, and facility contracts.
In the official press announcement, Adi Tantravahi, Cofactor AI’s co-founder and CEO, stated: “Fighting claims denials is an overwhelming challenge for hospitals.” “Cofactor AI puts powerful, AI-driven tools directly into the hands of providers to ensure they are compensated fairly for the care they deliver to patients. We are leveling the playing field in the AI arms race between payers and providers.”
Cofactor AI intends to use fresh funds to support the development and deployment of their AI-powered platform, the Cofactor Denial Suite, which assists hospitals in efficiently appealing insurance claim denials. By automating the complex appeals process, Cofactor AI seeks to reduce administrative burdens, improve financial performance, and enhance patient care within healthcare organizations.