ModMed Strengthens Vision For The “AI-Powered Practice” With Acquisition of Bonsai Health
ModMed, a leading provider of cloud-based software and services for specialty medical practices, has announced the acquisition of Bonsai Health, a fast-growing developer of agentic AI solutions designed to automate patient engagement workflows.
The acquisition represents a significant milestone in ModMed’s ongoing effort to build what it calls the AI-Powered Practice™, a vision centered on streamlining operations, improving patient outcomes, and reducing administrative burdens through automation and data-driven workflows.
“We are thrilled to welcome the incredible team at Bonsai Health into the ModMed family,” said Daniel Cane, co-founder and co-CEO of ModMed. “Bonsai was built on a simple but powerful mission: to ensure the right care happens at the right time. Their agentic AI platform and approach to patient reactivation are a perfect fit for our vision of the AI-Powered Practice.”
A Proactive Engine for Practice Growth
At the heart of the acquisition is Bonsai Health’s agentic AI platform, designed to operate behind the scenes to automate time-consuming front-office tasks, traditionally handled manually by clinic staff.
The platform works by identifying care gaps in patient histories alongside openings in provider schedules, then proactively reconnecting patients with providers through automated outreach. Using multi-channel communication, including SMS and email, the system enables seamless patient reactivation and self-scheduling without requiring staff intervention.
This capability builds on ModMed’s existing patient engagement tools, including its communication platform powered by Klara. While Klara functions as a centralized hub for staff-managed patient messaging, Bonsai introduces an additional layer of proactive automation, designed to fill unused appointment slots and improve continuity of care.
Together, these technologies aim to reduce staff workload while improving operational efficiency and patient access to care, two of the most pressing challenges facing specialty practices today.
Scaling Innovation Across Nearly 50,000 Providers
ModMed plans to accelerate Bonsai Health’s growth by integrating its capabilities across the company’s expansive network of nearly 50,000 specialty healthcare providers.
These providers span a wide range of specialties, including:
Dermatology
Ophthalmology
Orthopedics
Gastroenterology
Ear, Nose, and Throat (ENT)
And additional specialty practices nationwide
The acquisition also brings experienced leadership into the ModMed ecosystem. Bonsai Health was founded by Travis Schneider and Luke Kervin, entrepreneurs with deep experience in healthcare technology and patient engagement.
Notably, the founders previously co-founded PatientPop, a widely recognized practice growth platform used by thousands of healthcare providers.
“Joining the ModMed family provides us with the scale and resources of an industry leader to bring our AI technology to nearly 50,000 providers,” said Kervin. “ModMed’s deep clinical datasets and industry-leading infrastructure provide the perfect environment to advance our agentic AI innovation faster than ever before.”
Investor Confidence and the Future of the AI-Powered Practice
The acquisition of Bonsai Health aligns with the broader investment strategy of Clearlake Capital Group, the global alternative asset manager backing ModMed. Clearlake has identified agentic AI as one of the most transformative forces shaping healthcare operations, particularly within front-office functions that have traditionally relied on manual, staff-driven workflows.
“Agentic AI is transforming the front office in healthcare—shifting from reactive, staff-driven workflows to proactive, automated patient engagement at scale,” said Paul Huber. “Bonsai Health is a best-in-class example of where this technology is headed.”
With more than $185 billion in assets under management, Clearlake continues to prioritize long-term investments in companies driving digital transformation across industries, with healthcare emerging as a key focus area.
Within this context, the integration of Bonsai Health into ModMed marks a significant step toward the evolution of the AI-Powered Practice™. The combined platform reflects a broader shift in healthcare operations—from reactive scheduling and communication to predictive, automated patient engagement that operates in real time.
For specialty medical practices, this transformation directly addresses persistent operational challenges, including staffing shortages, patient appointment gaps, administrative overload, and patient retention and follow-up compliance. By automating outreach and proactively identifying care opportunities, the integrated solution aims to reduce manual workload while improving both clinical efficiency and patient outcomes.
As healthcare continues to evolve, this acquisition underscores the accelerating role of artificial intelligence in redefining medical practice management, positioning ModMed at the forefront of a new model where intelligent automation supports healthier patients, more efficient staff, and stronger-performing practices.
Why This Matters: Healthcare Innovation in South Florida
For South Florida’s rapidly expanding healthcare and biosciences ecosystem, this acquisition reflects a broader shift toward AI-driven healthcare infrastructure taking shape across the region. Companies like ModMed have played a foundational role in establishing South Florida as more than a regional tech hub, positioning it as an emerging center for specialty healthcare software, clinical innovation, and digital patient engagement at scale.
Today, the region is increasingly defined by the convergence of health-tech and life sciences, with growth fueled by healthcare software companies, research institutions, private capital investment, and a strong pipeline of clinical and technical talent. This ecosystem is not only supporting the digitization of care delivery but is also accelerating the adoption of AI-powered tools that improve how patients are connected to providers and how practices operate day to day.
According to the Business Development Board of Palm Beach County (BDB), there are just under 7,000 healthcare and life science companies in the county, underscoring the depth and density of the regional ecosystem. The Palm Beaches have become a premier destination for healthcare, life sciences, and research, home to world-renowned institutes and one of Florida’s most robust, rapidly expanding healthcare systems.
Within this context, ModMed’s acquisition of Bonsai Health reinforces South Florida’s position at the forefront of specialty care technology and intelligent patient engagement systems. The integration of Bonsai’s proactive, agentic AI capabilities strengthens the region’s growing reputation for building scalable healthcare solutions that move beyond traditional software systems into automation-first platforms.
As ModMed continues to expand its AI-Powered Practice™ vision, the company is helping shape a broader regional narrative, one where South Florida is not just participating in healthcare innovation, but actively contributing to the next generation of AI-enabled clinical infrastructure. This evolution reflects a maturing ecosystem where healthcare delivery, biosciences, and wellness innovation are increasingly interconnected, with technology serving as the bridge between improved provider efficiency and better patient outcomes.
