Sunbound pairs a $24M Series A with a senior living RCM acquisition

Sunbound has closed a $24 million Series A led by TTV Capital and acquired Richter Healthcare Consultants, both announced on 15 October and reported by Senior Housing News and Pulse 2.0. Bling Capital, Fika Ventures, Live Oak Bank and the Ziegler Linkage Fund also invested, bringing total funding to $36 million. Terms of the acquisition were not disclosed.

Software meets services

Sunbound sells what it calls an AI-powered revenue operating system for senior living operators. According to Pulse 2.0, it covers revenue cycle management across Medicare, Medicaid and managed care, including flagging denial risks before claims go out, plus tools for digitising family payments and checking payer coverage at admission.

Richter has served post-acute and senior living operators for more than 25 years, including skilled nursing, senior living, home health and hospice providers. Its services include outsourced revenue cycle management, accounting, Medicaid eligibility and reimbursement, and clinical and financial consulting. Together, the businesses cover the revenue cycle from admission to payment and say they are on track to process $3 billion in annualised payment volume.

Who's behind it

Manny Cominsky is Sunbound's co-founder and CEO. Jennifer Richter, Richter's founder and CEO, stays with the combined company in a role focused on industry partnerships and product strategy. Cominsky told Senior Housing News that existing clients of both companies should see no disruption to service.

"Senior living is and will remain core to Sunbound," Manny Cominsky, Co-Founder and CEO, Sunbound

The numbers

Pulse 2.0 reports company figures of a 99% claims collection rate and a 96% first-pass acceptance rate for operators using the platform. Sunbound plans to put the new capital into business growth and product development, and to offer the combined product to both customer bases over time. No customer count was disclosed.

The bigger picture

Sunbound is not alone in mixing software with services. In the same month, Sustainable Medical Billing has been buying RCM services firms. Buying an established services team gives a software company domain experience, client relationships and people who can run complex billing, while the software is meant to take on the repetitive volume. For Sunbound, Richter also brings skilled nursing expertise, which Pulse 2.0 highlights as a key part of the deal.