Investing in Medallion: accelerating back office automation in healthcare

By Vishal Lugani, Kendra Ragatz, Tom Porter, and Maitree Mervana Parekh

We are proud to be leading Medallion’s latest funding round. Immediately upon meeting Derek Lo, we were struck by Derek & the team’s ambition to transform healthcare by tackling one of its most persistent pain points: administrative burden. Medallion operates an AI-powered workflow automation platform for the healthcare back-office, helping providers get onboarded and in-network with insurance up to 10× faster, automating credential verification, and serving as the system of record for provider data.

Medallion unveiled its newest initiative: CredAlliance, a national credentialing clearinghouse. Credentialing — the process by which payers verify that providers are licensed and qualified — is necessary, but incredibly duplicative. Each of the ~4M credentialed providers in the U.S. contracts with an average of 19 payers, leading to ~25M credentialing events annually and an estimated $1.25B in costs.

CredAlliance enables payers to verify providers once and share those results across networks while maintaining their own quality standards. The potential impact is enormous: millions of redundant credentialing events eliminated, ~10M provider hours saved, and far less friction for providers and patients alike. CredAlliance has already signed up a few dozen payers, with five of the nation’s top 10 health plans considering joining. The network is growing fast.

This is exactly one of the themes we set out to pursue in Acrew Capital’s healthcare investing. Medallion is an exemplar of a company that uses the latest in technology to reduce administrative waste while improving the efficiency and trustworthiness of the healthcare system.