Medallion raises $43M to automate back-office healthcare credentialing and network management

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Uh Ferro Logix in the chat says, "What up, brothers?" What's up, Ferro Logix? Thanks for tuning in. We have our next guest, Derek Low from Medallion coming in the studio. Derek, how you been?

Good. How are you?

What's happening? Welcome.

Uh, give us the news. I want to ring the gong and then I want to talk about uh some of the backstory and then some of the dynamics in the industry. Uh, but please introduce yourself, the company, and the news.

Yeah, for sure. Uh, my name is Derrick Low. I'm the founder and CEO at Medallion.

This is a chaotic stream, by the way. We're having we're having fun over here.

We're having a fun today. And what's the news?

Um, yeah. Yeah. So, we just raised uh $43 million led by

Wow, that's cool.

Incredible. Um, who did you raise it from?

Um, yeah, so a crew led the round um with participation from some of our existing insiders like Sequoia, Google Venture, Spark Capital. Um, so yeah, we were very happy with how the round came together.

Uh, yeah, explain the business as quickly as you can and then tell me about how the market's developing, what's going on. And a lot of people have been following like the Ompic news and the DTOC wave and just kind of get us up to speed on what's going on in the market broadly.

Yeah, for sure. Um, so we helped to automate back office processes for healthcare companies primarily around um managing a clinical network. So any healthcare company, right? Think like or Teddoc, they all have to hire a bunch of clinicians to be able to administer care. Um, so everything from a digital health company to a hospital to a primary care clinic. Um, and so that clinical workforce is really the most important component of a healthcare business to be able to actually deliver care and we essentially help with a lot of the healthcare specific operational tasks that have to happen behind the scenes to be able to manage that workforce.

Is there a world where you bundle this with like payroll or something like give the compliance stuff like it it feels like deeply linked in the in the in the core system of record. How deep do you want to sit in the system of record stack?

Yeah, it's a great question. I mean, we're very adjacent to um to payroll and some of those other Yeah. back office works, but we want to target uh workflows that are very specific to healthcare. Um and so we're applying AI and automation to like this very niche like vertical, which happens to be still super massive just given the the sky the the size and scale of US healthcare. Um, so yeah, we wouldn't really consider getting into payroll just because that's it's a super competitive space. It's very horizontal.

Yeah, I remember the initial thesis was like in the future there will be more doctors that will be uh you know seeing patients in different states and so licensing particularly will be important at the early stage. Um how has that played out? How common is that? Is that still growing like you know in line with your expectations? Yeah, Johnny, I think you were you were actually I was looking back, you were one of our first 10 angel investors, which is pretty it's pretty cool. Um,

when we when we started the company, yeah, we were very focused on digital health because it was right during co and so the expansion of tellahalth was obviously really relevant at that point. Yeah.

Um I think what we've seen is that postco that's leveled out quite a bit and um obviously the majority the vast majority of care is non um tellalth based and so typically here is delivered locally and so as a result um yeah where we've seen most of our growth is actually expanding beyond um helping with um those type of yeah essentially like cross-state teleaalth use cases operationally and more on um actually helping providers get um in network within insurance payers is that's something that's ubiquitous is like 99% plus of care is delivered right through insurance. Um so that's where we really focus today. where in the healthc care tech stack is proving to be AI resistant in the sense that like the best frontier reasoning models they just aren't satisfying people in the way that maybe people were thinking oh let's throw automation at this but turns out we want to keep a human in the loop for maybe compliance reasons that we didn't p we didn't perceive like where where where are the where are the last jobs in back office healthcare going to live

yeah it's a great question Um Parker Connor actually has a had a really great um podcast recently a few weeks ago where he talked a little bit about this and how for rippling like um yeah AI hasn't really they haven't really deployed it in any major ways at least in payroll because it's it's a really critical workflow like h things have to go right it's very rule based it's a really good analogy to medallion where we're working with um an extremely fine margin for error um things have to essentially be like perfect And um and what we've seen is like current models are not capable at I think doing perfection. Um I think that they'll get there pretty quickly. Um but yeah, we found is that essentially executing on these type of workflows deterministically is proving to be better for now. I think that will change. Build the software using the old tools. Hopefully some AI code gen in the mix to speed up software development, but ultimately just a a

Yeah. And we're using it in places where the the margin for error is wider. So things like um you know calling a provider to say hey like you need to give us some this you know some piece of data. It's like the margin for error there is a lot wider than

if you're filling out a you know form that requires data elements and like yeah get one one little one character wrong. It can like screw up the whole process. Yeah

that's crazy. Uh Jordy, anything else or