SpendRule raises $2M, emerges from stealth to help hospitals track spending

Chris Heckler, fresh off a five-year non-compete following the sale of his previous healthcare startup, found himself itching to return to the entrepreneurial scene. "I was doing angel investing but realized I was too young to step back completely," he shared with TechCrunch. Meanwhile, Joseph Akintolayo, who had just parted ways with his fintech venture, was also on the lookout for new opportunities. Having previously collaborated, the two decided to join forces, leveraging Heckler's extensive network and Akintolayo's expertise in AI and supply chain management. Their collaboration birthed SpendRule, an innovative platform designed to assist healthcare systems in monitoring their expenditures. Officially launched last summer, SpendRule made waves this week by announcing it has emerged from stealth mode, backed by $2 million in funding led by Abundant Venture Partners, with participation from MemorialCare Innovation Fund and Zeal Capital Partners. In the current landscape, healthcare systems often rely on a three-way match for items with barcodes, linking purchases to invoices. However, many essential services—such as maintenance, janitorial, and translation—lack such straightforward tracking, leading to frequent overspending. SpendRule addresses this issue by ensuring hospitals only pay what they have negotiated in their contracts. The platform seamlessly integrates with existing hospital systems, including enterprise resource planning software and accounts payable workflows. It pulls data from contracts, invoices, and vendor information to validate payments, flagging discrepancies and guiding teams on when to execute payments. Typically, hospitals engage auditors every two years to handle such tasks, but with the rise of AI, this labor-intensive process is ripe for automation. Major healthcare providers like Kettering Health, MemorialCare, and MUSC Health are already utilizing SpendRule's services. Despite being a startup from just last summer, Heckler and Akintolayo successfully closed their funding round by Halloween, largely thanks to Heckler's industry connections. With the new investment, they plan to expand their team and enhance the company’s AI capabilities. While they recognize competitors like SpendMend and GHX, Akintolayo emphasizes SpendRule's unique focus on purchasing services that do not have barcodes. "Our goal is to foster a more resilient healthcare system," he stated. "We aim to safeguard everyone's bottom line by connecting their data and empowering better decision-making."