Texas Health Resources Among Investors in ArcheHealth

Texas Health Resources is investing in a process improvement startup called ArcheHealth and is also the company's first customer. 

ArcheHealth has secured a $6.7 million seed round funded by LRVHealth, Martin Ventures, and Texas Health Resources to launch its AI-powered platform to reduce healthcare costs and drive operational performance improvement.

“Texas Health has been looking for a technology-driven approach to process improvement,” said John Whiteley, senior vice president, financial planning analysis and ambulatory operations for Texas Health, in a statement. “ArcheHealth presented a solution that we feel strongly will be developed into a tool that will meet our needs as a health system. As an investor as well as a client, we are committed to helping make this tool improve operational and clinical efficiency.”

Birmingham, Ala.-based ArcheHealth said that it offers an AI-based platform that provides hospitals with detailed insights into the actual costs of delivering patient-level care. The platform analyzes de-identified clinical, financial, and operational data from multiple sources to highlight process inefficiencies and reduce costs, such as in labor, supplies and drugs and thereby creating sustainable margin growth.

The company said its approach enables hospitals to enhance patient processes and shift from reactive to proactive performance management.

ArcheHealth was founded and is led by CEO Ralph Keiser, a healthcare IT veteran who founded multiple software and service businesses and led them through rapid growth, expansion and exit including EPSi and @Outcome, as well as the leadership and launch of Cerner’s PowerInsight and Deloitte’s ConvergeHEALTH platforms.

“Hospitals today are under pressure from rising labor and supply costs and shrinking margins that compromise operational quality — the rate of change isn't fast enough,” said Keiser in a statement. “ArcheHealth delivers operational intelligence faster, empowering hospitals to cut costs, optimize resource utilization, and elevate patient care — all without disrupting existing systems.”

“The healthcare industry’s traditional approach to cost management has been largely retrospective, resulting in missed opportunities and limited impact,” said Keith Figlioli, managing partner at LRVHealth, in a statement. “This remains an omnipresent challenge across our network, where executives are under constant pressure to reduce costs but lack the tools to generate timely, actionable insights into what’s driving them. I’ve worked with Ralph for more than two decades, and I’m confident that ArcheHealth’s combination of deep domain expertise and purpose-built technology can help health systems finally make meaningful progress on long-standing cost-containment and performance improvement goals.”