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July 30, 2025
5 min read
Heather Landi
Sword Health launches AI assistant to streamline healthcare operations for payers and providers, expanding beyond musculoskeletal care.
Sword Health Expands Beyond MSK Care with New AI Assistant for Payers and Providers
Sword Health, a company renowned for its virtual physical therapy and mental health services, has unveiled a new AI assistant specifically engineered to address operational and administrative challenges for payers and providers. This strategic move marks a significant expansion for the company, venturing beyond its established digital musculoskeletal (MSK) care, pelvic health, and movement health offerings. Virgilio "V" Bento, the founder and CEO of Sword Health, heralded the launch as a "pivotal evolution" in the company's strategy. He reiterated the core mission of making world-class care as accessible as running water, emphasizing a transition from a human-labor-dependent healthcare model to one where AI plays a central, enabling role.AI Solutions Built on Real-World Experience
Sword Health's AI care manager agents have undergone extensive internal testing to refine non-clinical workflows such as member enrollment, triage, eligibility verification, and outreach to high-risk individuals. These AI tools are currently instrumental in efficiently managing care for over half a million members. Bento explained that the genesis of Sword Intelligence stemmed from addressing internal operational hurdles encountered while managing care for more than 600,000 patient members across diverse programs and support channels. Recognizing the widespread scalability challenges faced by many healthcare organizations, Sword Health decided to extend these AI capabilities externally.Modular and Flexible AI Care Management
Sword Intelligence offers modular AI care managers designed for seamless integration with existing human teams and infrastructure. This approach empowers healthcare organizations to scale care delivery, enhance operational efficiency, and reduce overall costs. The company's AI-driven care model, initially focused on virtual MSK care, has since expanded to encompass pelvic health, movement health, and mental health. This expansion is supported by significant funding, including $40 million for mental health solutions and a $130 million round in 2024, which propelled the company's valuation to $4 billion. Currently, Sword Health serves over 1,000 enterprise clients. Since 2020, more than 600,000 members across three continents have participated in 7 million AI-driven sessions. The company asserts that its virtual care solutions have already generated nearly $1 billion in savings by preventing unnecessary healthcare costs, with over 40 clinical studies validating improved patient outcomes.Innovative Technology and Safety Standards
In 2024, Sword Health introduced Phoenix, a technology that synergistically combines AI with human clinicians, guiding patients through sessions via natural conversation. Sword Intelligence operates akin to an internal startup within Sword Health, complete with its own dedicated team, product roadmap, and go-to-market strategy, targeting broader healthcare domains beyond digital physical therapy. The AI solutions are developed with a paramount focus on safety, adhering to stringent HIPAA, HITRUST, and SOC 2 compliance standards. Sword Health distinguishes itself in the competitive AI healthcare landscape by leveraging its profound AI expertise alongside extensive healthcare experience.Tailored AI Solutions for Healthcare Organizations
Bento emphasized that Sword Health’s AI offerings are not one-size-fits-all products. Instead, their engineering teams collaborate closely with clients to embed and customize solutions that precisely align with specific workflows and care processes, ensuring practical and effective AI integration from the outset.Looking Ahead: Potential IPO
With competitors like Hinge Health and Omada Health planning to go public in 2025, Sword Health is also considered a strong candidate for an IPO. While an IPO has been contemplated, Bento indicated last year that it would likely not occur before the latter half of 2025.Source: Sword Health launches new AI assistant for payers, providers as it expands beyond MSK care by Heather Landi, Fierce Healthcare, July 29, 2025.