Honey Health Secures $7.8M to Advance AI-Powered Back Office Automation in Healthcare

The company’s AI agents automate administrative workflows, including data retrieval, patient notes, post-visit orders, refills, faxes, and prior authorizations.

AI back-office platform Honey Health has raised $7.8 million in seed funding, led by Pelion Ventures with participation from Streamlined, Burst Capital, and 8-Bit Capital. The company’s AI agents automate administrative workflows, including data retrieval, patient notes, post-visit orders, refills, faxes, and prior authorizations.

Founder and CEO Matt Faustman said the new funding will be used to support existing customers, including large independent practices, hospitals, and smaller health systems.

“Our customers really have the middle of the market. These are large independent practices, hospitals, and smaller health systems. Helping them give or hand off more of the back office to Honey Health. Today, we have five of what we call agents or AI staff members available working across the back office for our customers, and we intend to add a lot more to really build into our vision of handling the entire back office,” Faustman said.

He noted a growing trend among healthcare providers looking to delegate more administrative tasks to AI systems. “I have customers who are rapidly trying to give more and more of this work to AI or our AI staff member,” he said, adding that Honey Health aims to strengthen its presence within the mid-market segment.

“So, we really want to establish our footprint there as the AI back office for that market,” Faustman said.

Reflecting on AI’s trajectory in healthcare, Faustman noted that early adoption focused on testing and building trust in the technology. “That was the early testing of the water phase. I think as we go into 2026 and beyond, what you are going to see is organizations looking for an operational platform rather than narrow point solutions. One they can quickly operationalize and scale,” he said.

Faustman emphasized that many healthcare organizations are seeking to consolidate fragmented systems. “They are drowning in point solutions, legacy, and even AI point solutions. This is also what is helping our momentum. You are seeing organizations wanting to invest in platforms. Whether that be for the front office or for certain aspects of the clinical work or patient experience. And certainly the back office,” he added.

“They are looking for platforms that can handle multiple big workflows. I think Honey is really well positioned for that,” Faustman said.

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