ArcheHealth™ Secures $6.7 Million Seed Round for Healthcare Cost Reduction Solution

 ArcheHealth, which is positioned to be the healthcare operational intelligence leader, announced today that it has secured a $6.7 million round of seed funding to launch its transformative AI-powered platform to reduce healthcare costs and drive operational performance improvement.

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The seed round was funded by LRVHealth, Martin Ventures, and Texas Health Resources.

ArcheHealth offers an AI-based platform that provides hospitals with detailed insights into the actual costs of delivering patient-level care. The platform analyzes de-identified clinical, financial, and operational data from multiple sources to highlight process inefficiencies and reduce costs, such as in labor, supplies and drugs – thereby creating sustainable margin growth. ArcheHealth’s approach enables hospitals to enhance patient processes and shift from reactive to proactive performance management.

ArcheHealth is founded and led by Chief Executive Officer Ralph Keiser, a healthcare IT veteran whose track record includes building and managing high-growth technology companies ranging from the start-up phase to operating divisions of large public companies.

A serial entrepreneur by background, Keiser founded multiple software and service businesses and led them through rapid growth, expansion and exit including EPSi and @Outcome, as well as the leadership and launch of Cerner’s PowerInsight and Deloitte’s ConvergeHEALTH platforms.

“Hospitals today are under pressure from rising labor and supply costs and shrinking margins that compromise operational quality — the rate of change isn’t fast enough,” said Keiser. “ArcheHealth delivers operational intelligence faster, empowering hospitals to cut costs, optimize resource utilization, and elevate patient care — all without disrupting existing systems.”

ArcheHealth will use the funding to scale operations and further the development of its AI-based platform technology.

“The healthcare industry’s traditional approach to cost management has been largely retrospective, resulting in missed opportunities and limited impact,” said Keith Figlioli, Managing Partner at LRVHealth. “This remains an omnipresent challenge across our network, where executives are under constant pressure to reduce costs but lack the tools to generate timely, actionable insights into what’s driving them. I’ve worked with Ralph for more than two decades, and I’m confident that ArcheHealth’s combination of deep domain expertise and purpose-built technology can help health systems finally make meaningful progress on long-standing cost-containment and performance improvement goals.”

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“ArcheHealth is tackling some of today’s most significant healthcare challenges — shrinking margins driven by rising labor and supply chain costs — with real process-level insight into costs and performance,” said Jordan Lipson, Principal, Martin Ventures. “Our investment in ArcheHealth fits squarely within our thesis of driving operational transformation for providers without disrupting clinical workflows. We view ArcheHealth as one of the technology leaders that will turn healthcare operations into measurable outcomes and best-equip hospital financial leaders to convert those insights into scalable margin improvements.”

“Texas Health has been looking for a technology driven approach to process improvement,” said John Whiteley, senior vice president, financial planning analysis and ambulatory operations for Texas Health. “ArcheHealth presented a solution that we feel strongly will be developed into a tool that will meet our needs as a health system. As an investor as well as a client, we are committed to helping make this tool improve operational and clinical efficiency.”

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