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YC-backed Taxo raises $5M to slash healthcare admin with its AI ‘reasoning engine’


YC-backed startup Taxo has raised a $5m seed round to save doctors time and money on admin work.

What sets Taxo apart, Kerwan says, is its AI “reasoning engine,” which transparently explains the process behind its decisions to users, helping it build trust with doctors. At Taxo, the tech helps reduce hallucinations while increasing prior authorization approval rates to 98%, compared to an industry average of about 80%, according to Kerwan. When ChatGPT was released, doctors were understandably cautious about using it because they couldn’t trace why and how it was making specific recommendations, Kerwan told TechCrunch.

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