Vitalize, an AI-native platform that helps health systems manage labor and capacity in real time, has closed a US$31 million Series A round led by Oak HC/FT. The round included participation from Norwest, .406 Ventures, Constellation Ventures, Y Combinator, Rock Health Capital, and MemorialCare Innovation Fund. The company said the capital will accelerate growth, expand deployment teams, and advance its AI models for patient throughput optimization.
The Operational Burden on Health Systems
Labor represents the largest expense category in American healthcare, accounting for 50% to 60% of hospital operating costs and approaching US$1 trillion in annual spend nationwide. Hundreds of billions of dollars are lost each year to two core operational inefficiencies: workforce management and capacity planning. Clinical leaders can spend up to half of their day on manual scheduling, HR compliance, and rebuilding plans based on changing departmental capacity.
Without a way to forecast demand or automate responses, a large health system can spend more than US$100 million a year on premium overtime and agency labor. On the capacity side, hospital revenue depends on matching patient demand to available beds and staff, yet most systems still manage beds and staffing in separate silos. This disconnect can increase length of stay, leave beds unused, and cause emergency room patients to board for hours and stay roughly 30% longer than needed.
An AI-Native Approach to Real-Time Management
Vitalize functions as an always-on air traffic control system for the healthcare workforce, coordinating staffing and capacity across an entire enterprise. Its AI automates the most manual scheduling tasks for clinical leaders while forecasting demand and orchestrating staff across thousands of beds in real time. The platform learns system-specific rules with every shift it manages and integrates natively with leading EMR and time-and-payroll systems, replacing more than 10 patchwork tools.
Rapid Results for Health Systems
Today, Vitalize manages millions of shifts a week across dozens of enterprise health systems and saves clinical leaders more than 2,000 hours daily. Dan Ireland, EVP and Chief Nurse Executive at Rochester Regional Health, said that clinical leaders spent 50% less time on manual staffing and scheduling within weeks of deployment. David Pereles, Chief Information Officer at St. Luke's Health, reported a 54% reduction in premium labor spend across overtime and agency costs in just 12 weeks.
Brant Heise, Managing Partner of the MemorialCare Innovation Fund, noted that financial pressure, paper-based operations, and frontline burnout make labor and capacity solutions essential for keeping healthcare systems running. Vig Chandramouli, Partner at Oak HC/FT, described labor as a nearly trillion-dollar line item and one of the largest underpenetrated software markets in healthcare. He added that Vitalize stands out because it drives action and delivers fast ROI.
Scaling a High-Impact Platform
Vitalize will use the new capital to build its growth and deployment teams and invest in AI models focused on patient throughput optimization. The company was founded by CEO Veeraj Shah and Sanketh Andhavarapu, with a team that brings clinical, operational, and technical depth to health systems. Shah said the platform moves labor and capacity from manual and reactive to automated and predictive, helping systems save tens of millions of dollars.
The Series A round reflects growing investor confidence in AI-driven operational tools that address healthcare's largest cost center. By automating workforce management and aligning capacity with demand, Vitalize aims to reduce waste, improve finances, and return clinical leaders to patient care. As health systems face mounting financial strain, the company's rapid implementation and measurable results position it as a meaningful partner in unlocking healthcare's full capacity.