The New Funding from Health Velocity Capital Will Accelerate Commercial Expansion, Operational Scale, and Advance AI Capabilities
LOS ANGELES–(BUSINESS WIRE)–Third Way Health, Inc. (TWH), a leading AI-enabled services partner for healthcare organizations, announced today that it has raised an oversubscribed $15 million in Series A funding by Health Velocity Capital, with partner Kristin Torres Mowat leading the round. With this additional capital, the company’s total funding now sits at $22.5 million, supporting continued product investment and operational scale.
Today’s healthcare practices are overwhelmed by unprecedented administrative complexity, driven by outdated technology and fragmented processes. The result is widespread staff burnout and subsequent turnover, delayed patient care, and mounting financial pressure for providers and health systems.
Third Way Health addresses these challenges with a hybrid human and AI operating solution for healthcare practices, currently supporting practices that collectively serve more than 5 million patients each year. The company provides comprehensive front office services, from scheduling to prior authorization, through a white-glove implementation model that transforms operations in as little as 12 weeks. Fully dedicated teams are embedded in clients’ workflows, creating seamless, scalable operational support. To date, Third Way Health has helped clients reduce front-office administrative costs by up to 40 percent, increase patient visits by 11 percent on average, and cut phone wait times in half.
“No patient should have to wait on the phone when they need care,” says Third Way Health Co-Founder and Chief Operating Officer, Timm Schneider. “Automation, including AI, can make a real difference in facilitating those interactions, but our clients choose our solution not just for the sake of having better technology, but because we are helping them improve outcomes, including the patient experience and top-line growth. This funding will give us the resources to scale what we know already works and expand our reach.”
Third Way Health will use the funding to accelerate customer growth, expand its operational footprint, and further advance its automation roadmap. The company plans to invest in scaling its sales and implementation teams, deepening its AI capabilities, and enhancing its platform to support a growing base of customers.
“Healthcare providers are under significant administrative and financial pressure, and front-office operations are often a source of friction for both patients and clinicians. While AI will play an important role in improving these workflows, it is not a standalone solution,” said Kristin Torres Mowat, Partner at Health Velocity Capital. “Third Way Health has built a scalable operating model that integrates high-quality operations with targeted automation to improve cost, reliability, and patient access. Just as importantly, the team brings deep operational experience and a practical understanding of the day-to-day realities medical practices face. We believe this pragmatic integration of people and technology positions the company well in a large and underserved market.”
“The future of healthcare includes AI, but AI does not replace humans,” says Frederik Mueller, Co-Founder and CEO of Third Way Health. “We are at an inflection point where intelligent automation can truly optimize practices, freeing healthcare providers to focus on patients. Healthcare practices are ready for solutions that offer sustainable growth, and we are excited to lead the charge. We operate as a true extension of our customers’ teams, moving at their pace, absorbing operational volatility, and advocating relentlessly for what’s best for the practice so that every partnership delivers a genuine win-win. With this funding, we can continue redefining front-office operations and patient care.”
This is Third Way Health’s first public funding round, following a strategic investment from Astrana Health, Inc. (ASTH), a leading physician-centric and technology-powered healthcare company, and MedPOINT Management, Inc. (MPM), one of California’s largest management service organizations, in 2025.
About Third Way Health
Third Way Health is a cutting-edge AI powered healthcare services partner focused on revolutionizing the front office of medical practices and business operations for payers, MSOs, and beyond. We ensure best in class service quality through our AI-enabled end-to-end operating platform, a meticulous implementation process, and top tier personnel. For more information, please visit www.thirdway.health.
About Health Velocity
Health Velocity Capital invests exclusively in innovative healthcare software and services companies. The firm’s partners have more than 90 collective years as investors, entrepreneurs, and executives, helping to finance and build innovative companies that created important new healthcare markets and that became market leaders, including successful companies such as Teladoc, Livongo, Change Healthcare, MDLive, Contessa Health, Headspace Health, Aspire Health, Zipari, IVX Health, Artera, Compassus, Aperio, The Advisory Board Company, Healthways (Tivity Health), US Renal Care, Spero Health, OnShift, and many others. The firm counts among its limited partners many of the largest and most influential healthcare organizations in the country and current and former senior healthcare executives who collectively represent organizations that insure more than 175 million Americans, operate more than 700 hospitals, provide pharmacy and PBM services to everyone in the United States, and sell software to every major US health system.
Contacts
Hannah Melillo
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