Michelle Carnahan, a seasoned executive with a 26-year tenure at Eli Lilly and former president of healthcare startup Thirty Madison, has embarked on a new venture by launching her own AI-driven healthcare startup, Arbiter. Unlike typical startups that rely on venture capital, Arbiter successfully secured $52 million in seed funding, reaching a valuation of $400 million, primarily from family offices rather than traditional VCs. TriEdge Investments and MFO Ventures led the funding round with participation from WindRose Health Investors.
Arbiter’s innovative platform is designed to streamline administrative tasks for healthcare providers and plans by automating processes like referrals and appointment scheduling. Despite being just six months old, Arbiter’s technology is already operational with over 1,000 clinicians, a feat Carnahan attributes to the strategic backing from family offices. This approach not only provided capital but also offered specialized healthcare insights and expedited market entry.
The startup has made significant strides by acquiring a data platform from SecondWave Delivery Systems, enhancing its capabilities in patient data management and clinical decision support. This acquisition has accelerated Arbiter’s market presence by 18 months and secured multi-year revenue contracts.
Arbiter is developing AI infrastructure to further automate interactions between payers and providers, with its first application focusing on patient engagement. The company aims to launch a comprehensive “operating spine” for healthcare next year, partnering with a major national payer and provider to automate referrals.
Looking ahead, Arbiter plans to pursue additional acquisitions to bolster its growth, focusing on solutions with robust data strategies. The goal is to shift healthcare from reactive to proactive, using predictive AI to anticipate medical events. Despite facing competition from other AI-driven healthcare startups, Arbiter is poised to stand out with its strong leadership and advisory team, including industry experts like Dr. Clive Fields and Dr. Ainsley MacLean.
Dr. MacLean, who recently founded a private equity firm to support healthcare AI innovations, sees Arbiter as a potential game-changer in the industry, likening it to the “Palantir of healthcare” due to its deep-rooted connections and understanding of the sector.
