In a healthcare landscape increasingly strained by administrative bottlenecks, Honey Health has closed a $7.8 million seed round led by Pelion Ventures, with participation from Streamlined, Burst Capital, and 8-Bit Capital. The Mountain View-based startup is deploying autonomous AI agent teams that handle complex back-office workflows across electronic health records (EHRs), reducing the operational burden on care teams.
“Healthcare organizations are stuck between two broken models: point solutions that only solve narrow tasks and a constant struggle to hire and retain back-office staff,” said Matt Faustman, co-founder and CEO of Honey Health. “We’re offering something fundamentally different: AI agent teams that work autonomously in the background to complete entire workflows. Our customers wake up to finished work, not more tasks to manage.”
Founded by Matt Faustman and Xiao Zhang, former AI and product leaders at LinkedIn, Honey Health has partnered with over 100 medical groups and health systems since its launch in December. Customers report annual profit gains of $50,000–$65,000 per provider, driven by reduced backfill costs and more efficient scaling. As Dr. Kashif Latif of AM Endocrinology observes, “Our back-office work just gets done inside our EHR as if a staff member had completed it.”
The platform addresses a critical pain point for mid-market healthcare organizations managing mixed EHR systems and fragmented IT tools. Honey’s AI agents perform end-to-end workflows, from fetching lab data and preparing patient notes to managing prior authorizations and fax triage, all without human oversight. Its proprietary Loop Framework and Hive Protocol enable onboarding in under 30 days, integrating seamlessly into existing systems.
Tyler Hogge, Partner at Pelion Ventures, frames Honey as emblematic of a next-generation healthcare automation trend: “The market has grown exhausted with patchwork point solutions that create more complexity than they solve. Honey represents a platform where AI doesn’t just assist, but completes tasks end-to-end.”
From a market perspective, Honey Health is entering healthcare at a pivotal juncture. Administrative overhead in US healthcare systems accounts for nearly a third of total spending, and staff turnover in non-clinical roles hovers around 35%. Solutions that can reduce operational friction while scaling efficiently are likely to see strong adoption, particularly among mid-sized medical groups and multi-specialty organizations.
Strategically, Honey Health could evolve from a back-office automation provider into a central nervous system for healthcare operations. Its ability to navigate heterogeneous EHR environments and execute workflows autonomously positions it uniquely against legacy RPA tools and “copilot” AI solutions. If the company sustains adoption momentum and continues to expand its AI capabilities, it could redefine how healthcare organizations manage administrative labor altogether.
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