Onos Health has raised $6.3 million for its artificial intelligence (AI) platform designed to help payers manage behavioral health.
Haystack and Pathlight Ventures led the round with participation from Bertelsmann Healthcare Investments and Nebular.
The startup aims to streamline workflow and reduce paperwork in behavioral health. For example, the company offers an AI product aimed at improving quality oversight by flagging unnecessary or improper care practices. The tool was also designed to pinpoint waste and improve operational efficiency.
The company created a product for applied behavior analysis (ABA) and substance use disorders (SUDs).
The startup pitches its technology as a way to help improve care and provider adherence to evidence-based standards.
“”Since the pandemic, behavioral health has become the fastest-growing driver of cost for health plans. Managing that growth while ensuring people get timely, appropriate care is one of the biggest challenges in the industry,” Martin Rosenzweig, former CMO of Optum Behavioral Health and Onos adviser, said in a statement. “What excites me about Onos Health is their clinically aligned, responsible use of AI to help payers and providers truly work together to guide members toward the right support at the right time.”
This new funding round comes as payers are increasingly seeing their behavioral health spend increase. For example, in June, Centene Corp. (NYSE: CNC) noted its facing mounting cost pressure in its Medicaid business, with behavioral health utilization rising, particularly for ABA services.
But Cenetne is not unique in this area.
“Utilization of inpatient and outpatient behavioral health services is soaring,” according to a PwC report. “Claims for inpatient services were up nearly 80% between January 2023 and December 2024. For outpatient services, claims were up nearly 40% over that same period. One out of three health plan actuaries we surveyed named behavioral health services as a top three inflator and said they expect a 10% to 20% trend for behavioral health next year.”
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