Chris Heckler, after completing a five-year non-compete period following the sale of his healthcare startup, felt the urge to dive back into the entrepreneurial world. "I realized I was too young to retire," he shared. Meanwhile, Joseph Akintolayo, fresh from selling his fintech venture, was brainstorming new ideas while also under a non-compete clause. Their paths crossed, and they decided to collaborate.
This partnership led to the creation of SpendRule, an innovative AI-driven platform designed to assist healthcare systems in monitoring their expenditures. Officially launched last summer, SpendRule has now emerged from stealth mode with $2 million in funding, primarily from Abundant Venture Partners, along with contributions from MemorialCare Innovation Fund and Zeal Capital Partners.
In the current landscape, health systems often rely on a three-way match for items with barcodes, linking purchases to invoices. However, many services, such as maintenance or laundry, lack clear identifiers, complicating the tracking process. This complexity can lead to overspending, a challenge SpendRule aims to address by ensuring hospitals adhere to their negotiated contracts.
SpendRule seamlessly integrates with existing hospital systems, enhancing enterprise resource planning and accounts payable workflows. It meticulously validates invoices against contracts and internal databases before payment, thereby flagging discrepancies and guiding teams on payment decisions. Traditionally, hospitals would hire auditors for this task every two years, but SpendRule automates the process, making it more efficient.
Prominent healthcare providers like Kettering Health and MUSC Health are already leveraging the platform, demonstrating its effectiveness. Heckler and Akintolayo established SpendRule last summer and swiftly secured funding by Halloween, largely thanks to Heckler's extensive industry network. The new funding will facilitate team expansion and further development of their AI capabilities.
While existing invoice auditing firms like SpendMend and GHX are competitors, SpendRule distinguishes itself with a focus on service purchases that typically lack barcodes. "Our vision is to enhance the resilience of hospital systems," Akintolayo stated. "We aim to safeguard the financial health of our clients by optimizing their data and enabling informed decision-making."