Sohar Health Lands $3.8M to Open the Front Door to Faster, Fairer Care

• Kindred Capital backs Sohar Health's mission to remove one of care's biggest hidden barriers and create a seamless entry point for patients and providers
  
  
• Sohar's flagship Verification product is already powering millions of real-time insurance checks, helping leading providers reduce denials and get paid faster
  
  
• The funding fuels growth for Sohar's AI-first approach to eligibility and benefits verification, a long-overlooked gap in the revenue cycle that delays care and drains resources

NEW YORK, March 28, 2025 /PRNewswire/ -- Sohar Health, an AI-driven eligibility determination and Verification of Benefits (VoB) provider, today announced a $3.8 million seed funding round led by Kindred Capital, with participation from Y Combinator, Rebel Fund, and Concept Ventures. The funding will accelerate Sohar's mission to break down insurance barriers that delay care, overwhelm providers, and leave patients stuck in limbo.

Many patients run into roadblocks before they ever set foot in a clinic. For example, a parent might try to book a therapy appointment for their child, but the provider can't confirm coverage. Or a patient with chronic pain might spend hours researching in-network specialists, only to be blindsided by a denial. These breakdowns, often the result of outdated directories or paperwork errors, are far from rare. In fact, 45% of insured, working-age adults report receiving medical bills for care they thought was covered. Six in ten delay treatment after a denial. A stronger, more accurate onboarding process could have prevented many of these issues before care was even delivered.

The ripple effects are measurable and costly. When insurance verification fails, patients delay or abandon care, contributing to the estimated $140 billion in unpaid medical debt in the U.S. Providers lose revenue and waste hours on rework: the average denial costs $118 to reprocess, and nearly one in five claims is denied at first submission. Delayed treatment can lead to worsening conditions and higher downstream costs, from avoidable ER visits to hospitalizations. On a broader scale, these failures fuel frustration and distrust, especially among vulnerable patients navigating chronic conditions or mental health concerns, eroding confidence in a system that already feels too complex to navigate.

To tackle these challenges,  Sohar Health is rebuilding healthcare's "front door" with real-time, AI-powered eligibility and benefits verification. Instead of wrestling with manual workflows and outdated systems, providers using Sohar can instantly confirm coverage, reduce administrative overhead, and see more patients. For patients, that means fewer delays, fewer denials, and a faster, clearer path to care.

Sohar's flagship Verification product offers:

• Real-Time Eligibility Checks: With a median response time of 6 seconds, 90% of eligibility verifications are completed within 30 seconds, seamlessly integrating into providers' patient intake workflows.
• High Accuracy: Achieves a 96% accuracy rate in benefits data, including copay and coinsurance information, reducing claim denials and administrative errors.
• Bulk API Capabilities: Allows up to 1,000 verification checks per API call, ensuring patients maintain coverage from appointment scheduling to consultation.

"At Sohar Health, we believe the future of healthcare is seamless, efficient, and patient-focused," said Ashish Mandavia, M.D., co-founder and CEO of Sohar Health. "With this funding, we are developing a product suite to help healthcare organizations streamline insurance workflows, allowing providers to focus on patient care rather than paperwork. The launch of Verification further strengthens access to care by eliminating administrative friction and improving the patient experience."

By automating insurance eligibility verification, Sohar Health's AI-powered solutions ensure patients get connected with the in-network care they need while increasing revenue capture for providers. The company's solutions currently support leading behavioral health providers, primary care organizations, and telehealth platforms, ensuring that insurance verification no longer stands in the way of care.

"Fixing healthcare isn't just about new treatments — it's about modernizing the infrastructure that enables care to happen in the first place. Insurance verification is one of the most overlooked choke points in the revenue cycle, creating delays, denials, and massive inefficiencies for providers and patients alike," said Leila Zegna, Founding Partner of Kindred Capital. "The founders of Sohar Health have the deep domain experience to tackle this space head-on, and their AI-powered solution has already earned the trust of leading healthcare providers and powering millions of verifications a year. We believe they're building critical infrastructure for a more accessible, efficient healthcare system."

To learn more about Sohar Health, visit https://www.soharhealth.com/

About Sohar Health

Founded by a physician and an engineer in 2023, Sohar Health is an AI-driven eligibility determination and Verification of Benefits (VoB) provider that's redefining how healthcare organizations navigate the complex world of insurance claims. The team develops specialty-specific APIs to help providers reduce insurance claims denials, improve pricing transparency, and increase access to care for patients across the U.S. By harnessing the power of technology and uniquely understanding patients' benefits coverage, Sohar Health's eligibility service achieves above 90% accuracy, with around 95% of checks being returned within seconds. Learn more at www.soharhealth.com and follow us on LinkedIn and X.

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SOURCE Sohar Health