Sword Health Expands Beyond MSK Care with New AI Assistant for Payers and Providers

Sword Health, a leader in virtual physical therapy and mental health, has launched a new AI assistant designed to help payers and providers manage operational and administrative tasks more efficiently. This new AI division, called Sword Intelligence, represents a significant expansion beyond the company's original focus on digital musculoskeletal (MSK) care.

A Pivotal Evolution in Healthcare AI

According to Virgilio "V" Bento, founder and CEO of Sword Health, Sword Intelligence marks a "pivotal evolution" in the company’s strategy. "Sword Intelligence allows us to move beyond delivering care to our own members to enabling the entire healthcare industry to scale it efficiently and effectively," Bento said. He added, "At Sword Health, we talk about our mission as making world-class care as accessible as running water. And we often say we’re only 5% done. Looking at the opportunity ahead—moving healthcare from a model that relies 100% on human labor to one where AI takes on a central role—that statement has never felt more true."

AI Solutions Battle-Tested Internally

Sword Health’s AI care manager agents were initially developed to optimize the company’s internal workflows. These AI tools streamline non-clinical tasks such as:

• Enrollment
• Triage
• Eligibility checks
• High-risk member outreach
These solutions have helped Sword efficiently manage care for over half a million members. Bento explained that the AI initiative began as an internal project to address operational challenges in scaling care delivery.

"We have more than 600,000 patient members. Managing and coordinating care across multiple programs, referrals, and customer support is labor-intensive and hard to scale using humans alone. We needed a better solution to keep scaling efficiently without breaking apart," Bento said.

Expanding AI Capabilities to External Organizations

Recognizing that payers, providers, and governments face similar challenges, Sword Health is now offering its AI capabilities externally. Sword Intelligence provides modular AI care managers that integrate with existing human teams and infrastructure, offering a flexible way to scale care, improve efficiency, and reduce costs.

Growth Beyond Musculoskeletal Care

Originally focused on virtual musculoskeletal care, Sword Health has expanded into pelvic health, movement health, and mental health. In June 2025, the company unveiled an AI-driven mental health care model alongside a $40 million funding round. Sword Health had previously raised $130 million in June 2024 and now holds a valuation of $4 billion. The company serves over 1,000 enterprise clients and reports that since 2020, more than 600,000 members across three continents have completed 7 million AI sessions. Sword claims its virtual care solutions have saved clients nearly $1 billion in unnecessary healthcare costs and are supported by over 40 clinical studies demonstrating improved outcomes.

Latest Technology and AI-Human Collaboration

Last year, Sword Health introduced Phoenix, a technology that combines AI with human clinicians to guide patients through sessions using natural conversation. Phoenix continues to support direct patient care.

Sword Intelligence: A Startup Within a Company

Sword Intelligence operates like a startup within Sword Health, with its own dedicated team, roadmap, and go-to-market strategy targeting healthcare areas beyond digital physical therapy. The AI solutions are modular, safety-first, and designed to integrate seamlessly with existing systems, complying with HIPAA, HITRUST, and SOC 2 standards.

Competitive Advantage in AI Healthcare

The healthcare AI market is crowded, but Bento believes Sword Health’s real-world experience sets it apart.

"Many vendors either understand AI but not healthcare, or know healthcare but lack deep AI expertise. Sword Health is uniquely positioned because we’ve been testing AI in healthcare with our own members for years, learning how to engage patients, coordinate care, and navigate complex workflows."

Sword Health customizes AI solutions alongside clients, embedding teams within organizations to tailor integrations and ensure the AI works effectively from day one.

IPO Prospects

With competitors like Hinge Health and Omada Health going public in 2025, Sword Health is considered a strong IPO candidate. Bento has indicated the company has been considering an IPO but does not expect it before the second half of 2025.

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Frequently Asked Questions (FAQ)

Sword Health's AI Expansion

Q: What is Sword Intelligence? A: Sword Intelligence is Sword Health's new AI division, focused on developing and deploying AI assistants for payers and providers to manage operational and administrative tasks. Q: How does Sword Health use AI? A: Sword Health uses AI care manager agents internally to streamline tasks like enrollment, triage, eligibility checks, and member outreach, and is now expanding these capabilities externally. Q: What kind of tasks can Sword Intelligence AI assistants handle? A: These AI assistants can manage operational and administrative tasks for payers and providers, including enrollment, triage, eligibility checks, and high-risk member outreach.

Sword Health's Service Offerings

Q: Beyond MSK care, what other areas has Sword Health expanded into? A: Sword Health has expanded its services into pelvic health, movement health, and mental health. Q: What is Phoenix? A: Phoenix is a technology developed by Sword Health that combines AI with human clinicians to guide patients through sessions via natural conversation.

Business and Financials

Q: What is the valuation of Sword Health? A: Sword Health currently holds a valuation of $4 billion. Q: Has Sword Health raised funding recently? A: Yes, Sword Health raised $40 million in June 2025 for its AI-driven mental health care model and previously raised $130 million in June 2024. Q: Is Sword Health planning an IPO? A: Sword Health is considered a strong IPO candidate and has been considering an IPO, with expectations it could occur in the second half of 2025.

Competitive Landscape

Q: What makes Sword Health's AI offering unique in the market? A: Sword Health's unique position stems from its extensive real-world experience applying AI in healthcare for its own members over several years, allowing them to understand patient engagement, care coordination, and complex workflows.

Crypto Market AI's Take

Sword Health's expansion into AI for healthcare operations mirrors the broader trend of AI integration across various industries, including finance and cryptocurrency. Just as Sword Health leverages AI to streamline administrative tasks and improve efficiency in healthcare, AI is increasingly being used in the crypto market for similar purposes. Our platform, for instance, utilizes AI-powered trading bots and market analysis tools to help users navigate the complexities of digital asset trading. This strategic move by Sword Health highlights the growing recognition of AI's potential to optimize workflows and enhance service delivery, a principle that is fundamental to our own mission of revolutionizing finance through innovative AI solutions.

More to Read:

• AI Agents: Capabilities, Risks, and Growing Role
• How to Use Google Gemini for Smarter Crypto Trading
• The AI Gig Economy is Here and It Pays in Crypto

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Source: Sword Health launches new AI assistant for payers, providers as it expands beyond MSK care by Heather Landi, Fierce Healthcare, July 29, 2025.