Health Care Startup Vitalize Raises $31M in Series A Funding

Vitalize, a San Francisco, CA-based provider of an AI-native healthcare labor and capacity management platform, has raised $31 million in a Series A funding round led by Oak HC/FT.

The round also saw participation from Norwest, .406 Ventures, Constellation Ventures, Y Combinator, Rock Health Capital, and MemorialCare Innovation Fund.

The company will use the funding to build its growth and deployment teams and invest in AI models designed to improve patient throughput and healthcare workforce management.

What is Vitalize?

Vitalize provides an AI-native labor and capacity management platform for hospitals and healthcare systems.

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The platform helps healthcare organizations coordinate staffing and capacity across their operations. Its AI automates manual scheduling tasks, forecasts demand and helps manage staff across hospital beds in real time.

As the platform manages shifts, it learns the specific operating rules of each healthcare system and improves its recommendations.

Vitalize also integrates with existing electronic medical record (EMR) and time-and-payroll systems. This is designed to replace the multiple tools healthcare teams use for staffing, scheduling and capacity planning.

How Much Funding Has Vitalize Raised?

Vitalize has raised $31 million in its Series A funding round.

The source does not provide details about previous funding rounds or the company’s total funding raised to date.

Who Invested in Vitalize’s Series A Round?

The $31 million Series A round was led by Oak HC/FT.

Other participating investors include:

• Norwest
• .406 Ventures
• Constellation Ventures
• Y Combinator
• Rock Health Capital
• MemorialCare Innovation Fund

Why the Funding Matters

Vitalize will use the new funding to expand its growth and deployment teams.

The company will also invest in its AI models for patient throughput optimization.

The funding comes as healthcare organizations face high labor costs, and operational challenges related to workforce management and capacity planning.

Who founded Vitalize?

Vitalize was founded in 2023 by Sanketh Andhavarapu and Veeraj Shah.

The company is headquartered in San Francisco, California.

“Health systems are still running their single largest cost center on spreadsheets and group texts. That drains the budget, burns out frontline teams, and hurts patients,” said Veeraj Shah, CEO and co-founder of Vitalize. “We built Vitalize to move labor and capacity from manual and reactive to automated and predictive.

“Within weeks of deploying Vitalize, our clinical leaders were spending 50% less time on manual staffing and scheduling,” said Dan Ireland, EVP and Chief Nurse Executive at Rochester Regional Health. “This partnership will build a stronger workforce, drive improved finances and better outcomes for the patients and communities we serve.”

Market and Business Growth

Labor accounts for 50% to 60% of hospital operating costs in the U.S., representing nearly $1 trillion in annual spending, according to the company.

Healthcare leaders can spend significant time managing schedules, handling HR compliance and adjusting staffing plans as patient demand changes.

Vitalize is designed to automate these processes across inpatient, ancillary and ambulatory care settings.

The company says a large health system can spend more than $100 million annually on premium overtime and agency labor when staffing cannot keep pace with demand.

What Happens Next?

Vitalize plans to expand its growth and deployment teams and continue investing in its AI models.

The company will focus on improving patient throughput and helping hospitals manage workforce and capacity planning through its integrated platform.

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