7.4 Overall
ALAFFIA HEALTH

Alaffia Health

Recommend Scored Oct 2026

Alaffia Health is a New York City company whose AI software and team of nurses and certified coders review high-cost hospital claims for health plans, catching billing errors before payment and supporting utilization management and appeals work.

alaffiahealth.com

Strong fit

  • Health plans and third-party administrators that pay large volumes of high-cost facility claims
  • Payment integrity teams that want AI findings checked by clinicians and tied to the medical record
  • Plans that want to choose between running reviews in house, a hybrid setup, or handing the work to Alaffia

Weak fit

  • Hospitals and physician groups looking for billing software of their own
  • Plans whose main need is fraud investigation and case management
  • Buyers who want published prices before a sales call
Alaffia Health homepage

Bottom line

Alaffia Health is a claims review company for health plans that pairs AI, which reads medical records, with nurses and coders who check its findings. It suits payers that want savings on expensive inpatient and facility claims, backed by evidence that holds up when a hospital appeals. Plans looking mainly for fraud investigation tools should look at other vendors.

Score breakdown

7.8
Savings on reviewed claims
7.8
Claims review product
7.6
Getting live
5.6
Knowing what you will pay

Weights: Outcomes 35% · Product 30% · Implementation 20% · Pricing clarity 15%.

Alaffia Health is bought by health plans of all sizes and by the third-party administrators that pay claims for self-insured employers. Their payment integrity and clinical review teams use it to check expensive hospital bills before payment: diagnosis-related group (DRG) coding, readmissions, emergency department visits, implants, and surgeries. The same platform supports utilization management and appeals work. Plans can license the software for their own reviewers, use Alaffia's clinicians as a managed service, or mix the two.

Alaffia sells enterprise contracts and does not publish prices. It is a younger, venture-backed vendor with an estimated $15 million in annual revenue, and in 2022 it told TechCrunch that its main rivals were older firms that review claims by hand. Among companies we review, Codoxo covers fraud, waste, and abuse detection for payers, Certilytics builds predictive analytics for health plans, and Anterior and Hindsait use clinical AI for plans' prior authorization and utilization reviews.

Siblings TJ Ademiluyi, the chief executive, and Adun Akanni, the chief operating officer, founded Alaffia in 2020. Their parents run a medical billing company, and the founders set out to rebuild that kind of claims work with software, Business Insider reported. The name is a greeting that stands for peace, health, and wellness, according to the company's about page.

On its platform page, Alaffia describes a sequence of steps. It turns each medical record into a list of clinical facts, annotated by clinicians, and checks the documentation against the bill. It sends the claims most likely to need review to the front of the queue, and a human reviewer confirms each finding, with citations back to the record. Separate AI agents handle readmission, DRG, emergency department, appeals, and prior authorization reviews. The platform connects to claims systems, EHR data feeds, and clinical criteria tools, and Alaffia holds HITRUST and SOC 2 Type 2 certifications.

In its February 2026 Series B announcement, Alaffia said its reviews save plans more than 20% on average on high-cost facility claims, return more than five times their cost, and have saved health plans $120 million. The $55 million round was led by Transformation Capital, bringing total funding past $73 million. One case study on the platform page reports $21 million in realized savings with an appeal rate under 2%, and Alaffia says customers can go from contract to production in 30 days.

What customers say

What people like

"We send our expensive inpatient claims through Alaffia, and every finding comes back with the page in the medical record that supports it, which makes hospital disputes much easier to settle."

"We started with their reviewers doing the work and planned to bring it in house later. That flexibility is what got our finance team to sign."

What people don't like

"There is no price on the website, so it took several calls before we understood how the fees would be set."

"It is focused on high-cost facility claims, so we still use a separate vendor for fraud investigations."

Where customer reviews couldn't be found, our analysts attempted to give a voice to buyer sentiment, drawing on real information from review sites, forums, and product documentation.

Based on: Alaffia platform overview, Alaffia Series B announcement, and TechCrunch coverage.

Competitor landscape

VendorOverallEase of implementation
Anterior8.18.1
Codoxo7.67.2
Alaffia Health7.47.6
Certilytics7.37.0
Hindsait7.06.7

Pricing

ItemDetail
ModelSoftware licenses for plans that run reviews in house, or managed services where Alaffia's nurses and coders perform the reviews. Plans can also combine the two.
What usually drives costClaim volume, which review types are licensed (DRG, readmissions, emergency department, appeals, prior authorization), and how much of the review work Alaffia's staff handle.
What to ask before you buyAsk Alaffia how fees differ between software and managed services, whether any fees depend on savings, and how savings are counted.
Published pricingNot published.

Prerequisites for purchase

NeedWhy it matters
What you need to get Alaffia Health to function
Claims data feedAlaffia connects to your claims system to pick claims for review.
Medical record accessReviews depend on records from EHR feeds or provider submissions.
Clinical criteria toolsThe platform works alongside the criteria your reviewers use.
Security reviewHITRUST and SOC 2 Type 2 documentation to check.
What will maximize your value
Start with one review typeDRG or readmission reviews show savings early.
Decide who does the reviewsSets staffing needs and fees.
Track appeal outcomesShows whether findings hold up.
Deal-breakers
No access to medical records
Provider-side billing needs
Fraud investigation as the main need

Value creation time frame

#StageTypical range
1Contract to first reviews in productionAbout 1 month
2First realized savings1-3 months
3Additional review types live3-6 months

Leadership

Methodology
WeightFactorWhat it measures
35%Customer outcomesWhether buyers get measurable operational or clinical-workflow results after go-live
30%ProductCapability depth, reliability, and fit for the job the category buys
20%ImplementationHow hard it is to stand up, integrate, train, and stabilize
15%Pricing clarityWhether a buyer can model total cost without a mystery quote
LabelMeaning
Highly recommendStrong outcomes and product with manageable caveats
RecommendSolid fit for the right buyer; know the tradeoffs
ConditionalOnly with a specific use case or heavy caveats
Not recommendedAvoid for most buyers in this category

Read our full methodology for how we weight scores and assign recommend labels.