A startup aiming to simplify how patients obtain insurance-covered home medical equipment (HME) has raised $17 million in new funding.
New York-based Conduit Health announced Tuesday that it secured a $17 million Series A round led by Drive Capital, with participation from prior lead investors XYZ Ventures, Twelve Below, Eniac Ventures, and others, bringing the company’s total funding to $22 million.
Other companies associated with Drive Capital include Carrot Fertility, Sidecar Health, and Sondermind.
The new capital will help Conduit expand its technology infrastructure, operational footprint and partnerships as it works to address a persistent challenge in the durable medical equipment (DME) market: helping patients navigate the complex process required to obtain insurance-covered supplies.
“More broadly, the Series A will allow us to expand our team, technology and operations so we can reach significantly more patients across the country,” Natan Wise, co-founder and CEO of Conduit Health, told HME Business.
Many Americans qualify for insurance-covered home medical supplies through Medicare or Medicaid, but a large chunk of those individuals still struggle to successfully access those benefits due to paperwork, prior authorization requirements and coordination across multiple providers.
Those systemic hurdles were the starting point for building Conduit, Wise told HME Business.
“My co-founder, Rocky, and I go way back,” he recalled. “We became friends as teenagers during a gap year before college, and years later we reconnected and decided we wanted to build a company that makes a difference in peoples’ lives.”
That co-founder’s experience working closely with a medical supply company exposed the operational barriers patients often face when trying to obtain equipment through insurance, Wise explained.
“When we started digging into the system, it became clear the problem was much bigger than we initially realized,” he said.
Consolidating a fragmented workflow
Conduit Health’s model focuses on consolidating several steps of the traditional DME process into a single platform.
Instead of patients, caregivers or referral partners coordinating separately with physicians, payers and suppliers, the company integrates clinical evaluation, insurance authorization and supply fulfillment into one workflow. Ultimately, the goal is to shorten the time between a patient requesting equipment and receiving it at home.
“Success for us means removing the cognitive burden from patients and caregivers,” Wise said.
Under the company’s model, Conduit coordinates the clinical assessment, handles documentation required by insurers, verifies coverage and arranges delivery.
“When it works well, the patient doesn’t even notice the underlying complexity of DME procurement – they get what they need faster and with far less stress,” Wise said.
Conduit’s platform is built around a proprietary technology system called CareOS, an artificial intelligence-driven authorization and reimbursement engine designed to automate payer workflows.
The platform analyzes payer rules across Medicare, Medicaid and managed care plans, according to the company, predicting approval likelihood before claims are submitted.
“Navigating insurance rules and documentation requirements are the underlying bottlenecks in the DME industry,” Wise said.
CareOS has been trained on more than 50,000 patient interactions thus far, according to Conduit.
Rapid growth since launch
Conduit launched publicly in late 2024 and has scaled rapidly since then.
In roughly 16 months, it has delivered supplies to more than 50,000 patients, expanded its product catalog fourfold and built a payer network that includes more than 100 health plans representing nearly 90 million covered lives, according to the company.
A data point to drive home its momentum: Earlier this year, the company reported serving more patients in a single month than it did during the entire first half of 2025.
Conduit also works with referral partners including home care agencies, skilled nursing facilities (SNFs), case managers and managed long-term services and supports plans, which often play a central role in helping patients obtain HME.
For those partners, reducing administrative complexity can be as important as improving the patient experience, too.
Drive Capital, which led the funding round, views Conduit’s end-to-end approach to the DME process as a key differentiator.
“What stood out to us is that Conduit isn’t just improving one part of the workflow – they’re taking ownership of the entire process,” Molly Bonakdarpour, general partner at Drive Capital, told HME Business.
Other active Drive Capital health care portfolio companies include Circulo, Olive and Sondermind.
“Historically, patients and caregivers have had to coordinate between doctors, insurers and suppliers themselves,” Bonakdarpour said. “Conduit’s vertically-integrated model brings those steps into one system, which allows them to reduce delays and create a much more predictable, hands-off experience for patients.”
Bonakdarpour also pointed to broader shifts in health care delivery that could increase demand for solutions focused on home-based care.
“Health care is increasingly shifting into the home,” she told HME Business. “Aging demographics, earlier hospital discharges, and rising care costs are all pushing care delivery outside traditional facilities.”
Longer term, Conduit sees its platform extending beyond DME.
The company ultimately aims to build infrastructure that helps patients access a wider range of insurance-covered services delivered in the home, including transportation to medical appointments, medically tailored meals and home modifications, Wise said.
As care delivery continues to shift toward home-based settings, he said the opportunity extends well beyond medical equipment.
“We started in durable medical equipment because it’s historically been one of the most difficult benefits for patients to access,” Wise said. “But the broader opportunity is making it easier for people to receive care and services in the home.”
