Funding will fuel platform expansion, engineering growth, and health-system partnerships to reduce administrative waste and speed access to care.
PHILADELPHIA, PA, UNITED STATES, April 16, 2026 /EINPresswire.com/ — Ethermed, a healthcare technology company building AI-driven automation for prior authorization and medical-necessity workflows, has raised $8.5 million in Series A funding to expand its enterprise platform and scale its growing network of health-system partners. The round was led by Enfield Capital Partners and Blue Marlin Partners, with participation from Jumpstart Ventures, Healthliant Ventures, Woodard Family Office and Gaingels, and follows a previous Seed round of over $6.5 million.
“Prior authorization is one of those problems everyone in healthcare complains about, but very few companies actually solve in a practical way,” said Karenann Terrell, Board Member at Ethermed and Managing Director at Blue Marlin Partners. “What stood out to me about Ethermed is that the team understands how healthcare really works and built something that fits into it, rather than trying to replace it. That’s why I’m excited to support the company at this stage.”
Ethermed’s intelligent automation platform uses advanced language models and clinical reasoning to review documentation, interpret payer rules, and generate compliant prior-authorization submissions in seconds, reducing approval turnaround from days to minutes and helping both payers and providers regain valuable time for patient care.
“Administrative complexity continues to drain billions from healthcare each year,” said Dan Friedman, CEO and Co-Founder of Ethermed. “Ethermed was built to eliminate the friction between payers and providers by amplifying clinical judgment through automation that truly understands medicine. This funding allows us to scale our AI engine and bring relief to care teams and patients across the country.”
Since its inception, Ethermed has integrated with leading EHR systems and processed millions of prior-authorization transactions, building a growing customer base across both providers and payers and demonstrating measurable reductions in denials and staff workload. Building on the nine customers who have already chosen the Ethermed platform, the Series A financing will accelerate the company’s go-to-market strategy, deepen partnerships with national health systems, and expand its data science and engineering teams.
“Prior authorization is a constant headache for our teams,” said Steve West, Managing Director of Healthliant Ventures at Tanner Health. “Ethermed caught our attention because they’ve built something that fits into how health systems actually operate, and the traction they’ve gained with customers speaks for itself. We’re excited to support what comes next.”
“Ethermed’s technology directly addresses one of the most painful bottlenecks in healthcare,” said Todd Stern, CEO at Enfield Capital Partners. “By combining deep clinical intelligence with scalable automation, Ethermed is redefining how prior authorization can work—fast, compliant, and patient-centered.”
About Ethermed
Ethermed is a healthcare technology company transforming administrative processes through AI-powered clinical automation. The Ethermed platform integrates with EHRs and payer systems to streamline prior authorization, documentation, and compliance workflows, reducing administrative burden, improving accuracy, and enabling faster access to care. Learn more at www.ethermed.ai.
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