Third Way Health, a Los Angeles, CA-based AI-enabled services company for healthcare organizations, has raised $15 million in a Series A funding round led by Health Velocity Capital.
The round also saw participation from Kristin Torres Mowat.
The funding round brought the company’s total to $22.5 million.
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The company plans to use the funds to grow its customer base, expand operations, and advance its automation plans.
Third Way Health, Inc., a leading AI-powered services partner for healthcare organizations, helps practices with a hybrid human-AI solution. The company currently supports practices serving over 5 million patients annually. It offers full front-office services—from scheduling to prior authorization—through a hands-on implementation model that can transform operations in just 12 weeks. Dedicated teams work directly within clients’ workflows to provide smooth, scalable support.
Today’s healthcare practices face overwhelming administrative challenges due to outdated technology and fragmented processes. This leads to staff burnout and turnover, delays in patient care, and increasing financial pressure on providers and health systems.
So far, Third Way Health has helped clients lower front-office costs by up to 40%, increase patient visits by an average of 11%, and reduce phone wait times by half.
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.
“No patient should have to wait on the phone to get care,” says Timm Schneider, Co-Founder and COO of Third Way Health. “AI and automation can improve these interactions, but our clients choose us because we help them achieve better outcomes, from patient experience to revenue growth. This funding will let us scale what works and reach more healthcare practices.”
“Healthcare providers face heavy administrative and financial pressure, and front-office operations often cause challenges for patients and staff. AI can help, but it’s not enough on its own,” said Kristin Torres Mowat, Partner at Health Velocity Capital. “Third Way Health combines skilled operations with targeted automation to improve costs, reliability, and patient access. Their team also has deep practical experience running medical practices, making their people-plus-technology approach well-suited for a large, underserved market.”
“The future of healthcare includes AI, but it doesn’t replace humans,” says Frederik Mueller, Co-Founder and CEO of Third Way Health. “Intelligent automation can now optimize practices, letting providers focus on patients. Practices need solutions that drive sustainable growth, and we’re proud to lead the way. We act as an extension of our customers’ teams, adapting to their pace, managing operational challenges, and always advocating for what’s best for them. This funding will help us keep improving front-office operations and patient care.”
About Third Way
Founded in 2022 by CEO Frederik Mueller, Health Velocity Capital invests exclusively in innovative healthcare software and services companies. Its partners have over 90 years of combined experience as investors, entrepreneurs, and executives, helping build companies that created new healthcare markets and became leaders, including Teladoc, Livongo, Change Healthcare, MDLive, Contessa Health, Headspace Health, and many others. The firm’s limited partners include top healthcare organizations and senior executives representing networks that cover over 175 million Americans, operate more than 700 hospitals, provide nationwide pharmacy and PBM services, and sell software to every major US health system.
