CommonSpirit Health is expanding its AI strategy through a new partnership with Midstream Health, a San Francisco-based financial technology company backed by Andreessen Horowitz and CommonSpirit Ventures.
Chicago-based CommonSpirit will implement Midstream’s AI-powered financial operations platform, beginning with integration into its supply chain operations. The health system is also an initial investor in the company.
The platform uses AI agents to analyze financial and contract data in real time, identifying missed rebates, pricing discrepancies, payer underpayments and policy-driven denials. Midstream said the goal is to help health systems address mounting margin pressure tied to rising costs and shrinking revenue streams.
Daniel Barchi, executive vice president and CIO of CommonSpirit Health, said in a Feb. 10 news release that the system builds on the organization’s broader effort to scale AI across its financial operations.
“Upon implementation, Midstream’s AI agents provided measurable gains within days, surfacing opportunities like missed rebates and underpayments,” Mr. Barchi said.
He described the technology as a closed-loop AI system that translates financial intelligence into real-time action.
Midstream said its platform consolidates fragmented financial and contract data into a continuously validated data foundation and prioritizes cost-saving and margin improvement opportunities for operational teams.
