Red Sky Health Secures $3M in Seed Funding to Revolutionize Healthcare Claims Management

Led by Trevor Burgess and Charles River Data Alumni, Gleb Drobkov and Mike Dezube, RSH Aims to Combat $262 Billion in Annual Insurance Claim Denials

BOSTON, Jan. 13, 2025 /PRNewswire/ -- Red Sky Health (RSH), an AI-driven platform designed to optimize healthcare claims management, has raised $3 million in seed funding. The round was led by serial entrepreneur and investor Trevor Burgess, alongside notable alumni from Charles River Data, Gleb Drobkov and Mike Dezube, now key figures in Neptune Flood's data science leadership.

Under the leadership of CEO Dean Margolis, a seasoned technology innovator, RSH is tackling a critical issue in the U.S. healthcare system: the staggering 15% of insurance claims that are denied annually, costing providers an estimated $262 billion in lost revenue. RSH's flagship technology, Daniel, leverages machine learning to analyze historical claims data, identify errors, and streamline resubmission processes, enabling providers to recover lost revenue with unprecedented efficiency.

"This funding marks a significant milestone for Red Sky Health as we advance our mission to reduce the financial burden of claim denials on healthcare providers," said Margolis. "With Daniel, we're not just addressing a problem — we're redefining how the industry approaches claims optimization.  Red Sky Health uses machine learning to identify denied health insurance claims issues, implement real time fixes in line with high precision and programmatically submit claims on behalf of the provider.  Additionally, our Population Health Model provides targeted opportunities for improved health care resulting in enhanced revenue generation, and our analytics allows for data driven negotiations with Managed Care Companies."

The funds will be used to expand RSH's footprint across the U.S., deepen partnerships with healthcare providers, and enhance the engineering team to further integrate Daniel's capabilities into existing healthcare workflows.

"Dean and his team are addressing a critical pain point with an innovative solution," said Trevor Burgess. "Their technology has the potential to deliver transformative results for healthcare providers and patients alike."

Red Sky Health is poised to become a pivotal player in the healthcare technology space, driving operational and financial efficiency for providers while empowering patients through improved resource allocation.

For further questions or to learn more, please reach out to [email protected] or go to https://www.redskyhealth.com/.

About Trevor Burgess

Trevor is the President & CEO of Neptune Flood, the largest private flood insurance provider in the United States. He is the former American Banker of the Year and an EY Entrepreneur of the Year. In 2016 Trevor became the first openly gay CEO of a NYSE listed bank and was a former Morgan Stanley Managing Director. Trevor is a graduate of Dartmouth College.

About Dean Margolis

Dean is the CEO of Red Sky Health, a healthcare and technology startup with a mission to ensure that healthcare providers are properly paid for their services. Previously, Dean was the President and COO of LivePerson, a customer service software company which he led through a successful IPO.  Dean has a BA in Economics from Columbia University, an MS in Computer Science from Harvard's Griffin Graduate School of Arts and Sciences, and an MBA from Harvard Business School.

SOURCE Charles River Data