Flagler Health Raises $50M to Scale Musculoskeletal AI

Flagler Health, a New York-based healthcare technology company, has raised $50 million in a Series B funding round. Led by Bessemer Venture Partners, the round also included participation from SignalFire, Alumni Ventures, Streamlined, 186 Ventures, Proof VC, Tribeca Ventures, and Offscript. This latest financing brings the startup's total capital raised to $63 million. Founded by CEO Albert Katz, Chief Medical Officer Dr. Leon Anijar, and Chief Technology Officer Will Hu, Flagler has expanded its reach to thousands of providers across more than 36 states in less than three years.

Unlike narrow AI tools that focus solely on medical transcription or clinical documentation, Flagler is building an AI-driven operational layer that integrates directly into existing electronic medical record systems. This integration allows clinics to deploy the platform without requiring staff to log into separate portals. The modular platform automates background tasks across the patient lifecycle, including referral processing, scheduling, patient engagement, care management, prior authorization, and billing. For example, its AI agents can automatically process inbound e-fax referrals and transition patients directly to scheduling.

For practitioners, this automation addresses the administrative bottlenecks of musculoskeletal care, which often involves complex handoffs between physical therapists, orthopedic surgeons, and pain specialists. Flagler reports that its platform generates an average of $164,000 in additional annual revenue per provider. Furthermore, the company claims that 87 percent of participating patients report improvements in areas such as pain, mobility, sleep, or mood.

With musculoskeletal conditions affecting approximately one in two American adults, the market represents a massive administrative burden. Flagler's expansion tests whether a unified AI operating layer can scale across a highly fragmented healthcare industry. By sitting on top of existing infrastructure rather than replacing it, the technology aims to reduce the time clinicians spend on non-clinical work, potentially shifting the industry toward more autonomous clinic operations.