Vitalize Raises $31M to Revolutionize Hospital Labor and Capacity Management

Vitalize, an AI‑powered platform that helps hospitals manage labor and capacity, announced Tuesday that it has secured $31 million in Series A funding.

The solution functions as an “air‑traffic control” system for the healthcare workforce, coordinating scheduling, staffing, and patient capacity across inpatient, ancillary, and ambulatory care settings.

“Labor accounts for 50‑60% of hospital operating costs, yet many health systems still manage staffing and capacity through manual, disconnected processes,” said Veeraj Shah, co‑founder and CEO of Vitalize. “Our platform moves these operations from manual and reactive to automated and predictive, reducing administrative burden and unnecessary labor costs while improving patient flow.”

The Series A round was led by Oak HC/FT, with participation from Norwest, .406 Ventures, Constellation Ventures, Y Combinator, Rock Health Capital, and MemorialCare Innovation Fund. Vitalize declined to share its total funding to date.

“Labor is a nearly trillion‑dollar line item for U.S. health systems, making it one of the largest and most underpenetrated software markets in healthcare,” said Vig Chandramouli, partner at Oak HC/FT. “What sets Vitalize apart is that it doesn’t just surface insight – it drives action, and the ROI shows up fast. We’re thrilled to back co‑founders Veeraj Shah and Sanketh Andhavarapu, and a founding team with the clinical, operational, and technical depth to capture a market this size.”

The financing will be used to build Vitalize’s growth and deployment teams, as well as to invest in its AI models, Shah said.

Clients report measurable results: St. Luke’s Chief Information Officer David Pereles noted a 54% reduction in premium labor spend—including overtime and agency costs—in just 12 weeks. Rochester Regional Health’s Chief Nurse Executive Dan Ireland said clinical leaders are spending 50% less time on manual staffing and scheduling.

Shah stated the company’s ultimate goal is to “unlock healthcare’s full capacity.” He added, “Our thesis is that the workforce is the key to unlocking the hardest operational challenges in healthcare delivery and enabling our system to see more patients. After labor operations, Vitalize will move to capacity management and supply chain optimization to serve as an intelligence layer for healthcare operations.”

Photo: Richard Drury, Getty Images

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