Keebler Health Raises $16M in Series A for AI Risk Adjustment

Keebler Health LLM-native platform targets unstructured clinical data to close chronic gaps in HCC coding accuracy for value-based care organizations.

Keebler Health raised $16 million in a Series A round on April 15 to expand its large language model-based risk adjustment platform, bringing total funding to $23 million since the company’s founding in 2023. 

Flare Capital Partners led the round, with Sands Capital and Tau Ventures participating alongside existing backers Freestyle Capital, Underdog Labs, and MBX Capital. Aviano Ventures, Everywhere Ventures, Hustle Fund, New Stack Ventures, and Tweener Fund also joined the round, per the company’s press release. 

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The company processes unstructured clinical documentation, provider notes, discharge summaries, and imaging reports to surface missed Hierarchical Condition Category codes used in Medicare Advantage and other value-based reimbursement models. It’s unclear how many health systems currently use the platform; Keebler Health did not disclose client counts in the release.

The move comes as payers and health systems face mounting pressure on risk adjustment accuracy. Roughly 80% of healthcare information is unstructured and resides outside coded fields, according to the company. A study cited in its press release, published in the Journal of the American Medical Informatics Association, found that only 59.4% of chronic conditions are consistently captured across electronic health record sources. 

Risk adjustment doesn’t just have an awareness problem; it has an approach problem. We built Keebler to bring that medical story forward so decisions about risk and reimbursement reflect the holistic view of each patient’s health.  
Isaac Park, CEO and co-founder, Keebler Health.

Keebler was founded by Park, Andrew Stickney, and Kevin Hill, Ph.D., with Terrell Bacchus, M.D., serving as the founding chief medical officer. The company previously raised $1.8 million in a pre-seed round led by New Stack Ventures and $6 million in a seed round led by Freestyle Capital, per CEO Park’s comments to Fierce Healthcare. 

Ian Chiang, partner at Flare Capital Partners, said in a statement that the platform “aligns with how clinical information is actually documented” and is “already demonstrating the ability to turn that into meaningful, measurable results.” Christy Steele, partner at Sands Capital, said in the same release that Keebler addresses “a system-level constraint in how patient documentation is used across healthcare.” 

Keebler plans to use the funds to expand its team, drive commercial growth, and invest in infrastructure for value-based care organizations. That includes expansion into compliance and audit workflows, specifically AI-enabled readiness for Risk Adjustment Data Validation audits, as federal scrutiny of Medicare Advantage risk coding practices continues. 

Longer term, the company said it aims to extend its infrastructure into population health and next-best-diagnostic-action use cases, applying the same unstructured-data processing to proactive risk management across a provider’s full patient population.

Disclaimer: This news is based on publicly available Information. NervNow has not independently verified any claims.

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