Flax Health Raises $3.5M Pre-Seed to Bring AI-Powered Automation to Tackle Administrative Burden in Skilled Nursing Facilities

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SALT LAKE CITY--(BUSINESS WIRE)--Sep 4, 2025--

Flax Health, the AI-powered platform for skilled nursing facilities, today announced it has raised $3.5 million in Pre-Seed funding. The round was co-led by Sorenson Capital and Pear VC, with participation from healthcare executives and skilled nursing operators.

Flax Health helps skilled nursing facilities reclaim time and revenue by automating critical and error-prone administrative workflows like referral processing, patient intake, and claims. Designed around the unique challenges of post-acute care, the platform ingests clinical data from source systems, extracts and organizes key insights, and kicks off automated workflows that improve care and downstream reimbursement.

The company’s first product which assesses hospital referrals for admissions, is already in use across high-performing facilities in multiple states. Flax pulls referral packets, instantly summarizes patient cases, and flags potential risks, such as costly medications, insurance, or behavioral factors.

“Skilled nursing facilities are under enormous pressure. Rising costs, staffing shortages, and growing regulatory complexity make it harder to deliver quality care,” said Trent Hazy, CEO and Co-Founder of Flax. “We built Flax to reduce the administrative burden pulling staff away from patients and to help facilities make smarter, faster decisions. Our customers are already seeing material results in both time savings and revenue recovery.”

Current customers save nearly 50 hours per month on administrative tasks while boosting weekly reimbursements by thousands of dollars. The platform also enables referral decisions to be made 40% faster, all while meeting industry privacy and security standards with robust audit trails.

“Flax Health is tackling real operational pain points with a solution that’s easy to adopt and delivers immediate impact,” said Eric Hilton, Partner at Sorenson Capital. “The team’s mix of healthcare domain knowledge and AI expertise, paired with strong early traction, makes them well-positioned to lead in this space. We’re excited to support their next phase of growth.”

“We’re proud to partner with Trent and David, experienced second-time founders who bring an enterprise-grade product and deep healthcare research expertise to improving administrative workflows,” said Mar Hershenson, Founding Managing Partner at Pear VC. “Skilled Nursing Facilities play a critical role in caring for patients after hospital discharge or surgery, yet have historically been underserved when it comes to modern technology. Equipping these facilities with AI can meaningfully improve patient outcomes while strengthening operational sustainability - both essential to the health of our system. We’re excited for Flax to bring cutting-edge generative AI to the workflows of these vital care providers.”

About Flax Health

Flax Health is an AI-powered workflow automation platform purpose-built for skilled nursing facilities. The company improves referral processing, streamlines intake, and enhances billing processes, helping facilities boost operational efficiency and profitability while maintaining compliance. Founded by repeat entrepreneurs Trent Hazy, a Stanford GSB alum, and David Kartchner, a Georgia Tech PhD in AI for healthcare, Flax Health is backed by Sorenson Capital and Pear VC.

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CONTACT: Flax Health Marketing

[email protected] Halbrecht

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KEYWORD: UNITED STATES NORTH AMERICA UTAH

INDUSTRY KEYWORD: SOFTWARE PRACTICE MANAGEMENT NURSING MANAGED CARE HEALTH ARTIFICIAL INTELLIGENCE HEALTH TECHNOLOGY TECHNOLOGY

SOURCE: Flax Health

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PUB: 09/04/2025 11:00 AM/DISC: 09/04/2025 11:00 AM

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