Entropy

What do they actually do

Entropy builds software that automates referral intake and revenue cycle work for specialty outpatient clinics. It ingests faxes, emails and portal submissions, classifies documents, and extracts structured patient and clinical data so staff don’t retype information (withentropy.ai; YC profile).

The product verifies insurance eligibility across payers via APIs and portals, prepares and submits prior authorizations with clinical triage, tracks status, and pushes updates to referrers and the clinic. It also runs denial‑management flows that assemble appeals and can challenge or resubmit claims (withentropy.ai).

Entropy integrates with existing EHRs and billing systems using APIs plus browser/voice agents so clinics don’t need to migrate. It operates with human‑in‑the‑loop review and practice‑specific knowledge bases, and publishes a trust center describing HIPAA and SOC 2 Type 2 controls. The company says clinics can be live in days and that it’s supporting thousands of patient interactions each month (withentropy.ai; trust.withentropy.ai).

Who are their target customer(s)

• Small specialty clinic owner / medical director: Loses time and revenue to slow referral handling and delayed or unpaid claims; wants faster patient starts and fewer no‑shows without replacing the EHR.
• Front‑desk / intake coordinator: Manages constant faxes/emails/portal messages and re‑enters data by hand while checking insurance, which delays scheduling.
• Billing manager / revenue‑cycle specialist: Deals with messy claims and frequent denials; appeals take time and push up days‑in‑A/R and lower collections.
• Referral / prior‑authorization specialist: Spends most time preparing and submitting prior auths and chasing payers; slow or rejected approvals delay care and waste staff hours.
• Clinic IT or operations lead: Needs tools that plug into current EHR/billing systems without long migrations and meet HIPAA/SOC 2 requirements while automating back‑office work.

How would they acquire their first 10, 50, and 100 customers

• First 10: Founder‑led, no‑risk pilots with local specialty clinics; hands‑on outreach, onboarding, and support so clinics see immediate intake, eligibility, and prior‑auth wins using EHR‑agnostic connectors and browser/voice agents to go live in days (withentropy.ai).
• First 50: Codify a 1–2 week implementation playbook, hire a small implementations team, and use measured ROI and case studies to drive referrals and targeted outbound in the same specialties; use published HIPAA/SOC 2 controls to streamline procurement (withentropy.ai; trust.withentropy.ai).
• First 100: Add targeted inbound (content/SEO on referrals, prior auth, denials), build marketplace/integration partnerships with common EHR/billing platforms and partner ecosystems, and stand up a small sales team; productize onboarding and billing so smaller clinics can self‑deploy while sales pursues higher‑touch accounts (withentropy.ai; trust.withentropy.ai; Stedi partners).

What is the rough total addressable market

Top-down context:

The U.S. revenue cycle management market is roughly $140B as of 2023 and projected to grow at low double digits, spanning eligibility, prior authorization, denials, and collections across hospitals and physician practices (Harris Williams). This provides headroom for a focused slice serving ambulatory specialty clinics.

Bottom-up calculation:

BLS data show about 3.0 million employees in Offices of Physicians (NAICS 6211) in 2024 (FRED/BLS). Assuming ~12 staff per clinic implies ~250k physician offices; if ~50% are specialty‑focused, that’s ~125k target clinics. If 100k clinics purchase intake/RCM automation at $8k–$12k per year, TAM is roughly $0.8–$1.2B.

Assumptions:

• Average specialty clinic has ~12 staff across clinical and admin roles.
• About half of physician offices are specialty‑focused and in scope for prior‑auth/denials‑heavy workflows.
• Average annual spend per clinic on intake + RCM automation is $8k–$12k.

Who are some of their notable competitors

• Waystar: Large RCM platform used by clinics and health systems; offers eligibility, prior authorization, claims, and denials tools that overlap with Entropy’s payer‑facing workflows.
• Experian Health: Provides eligibility and coverage discovery, prior authorization, and denials products widely used by provider organizations, competing for front‑end RCM automation.
• Infinx Healthcare: RCM and prior authorization automation for specialty practices; positions directly on automating complex auth and denials work for outpatient specialties.
• Myndshft: Automation platform focused on prior authorization and benefits verification for providers and payers; overlaps on auth workflows clinics need.
• Candid Health: API‑first RCM for medical groups and digital health companies; automates coding, claims, and denials, positioning against parts of Entropy’s RCM stack.