Paradigm Acquires AI Startup Careswitch

NORTH MIAMI, Florida—Paradigm, a revenue cycle management and claims processing company for homecare businesses, has acquired Careswitch, the artificial intelligence (AI)-powered homecare operating system.

Through the acquisition, Paradigm will integrate Careswitch’s AI capabilities and agentic claims processing into its revenue cycle management platform. The companies said this will create an entirely new product category in the homecare industry, and the winners will be providers and their clients.

Nearly 4,000 homecare providers currently use Paradigm to provide automation to streamline billing, improve cash flow and strengthen audit readiness, with more than $1.6B in claims processed annually.

“The Careswitch team has the deepest AI expertise in homecare,” said Danny Shapiro, CEO of Paradigm. “We’ve been watching their team closely for a while, and they’re years ahead of the industry in how they ship products and use AI to make it easier to run a homecare agency. We are thrilled that we can build solutions that not only automate the most complex processes in billing and claims, eliminating errors before they occur, but also harness the power of AI to enhance the human side of care itself, empowering agencies to deliver higher-quality, more personalized support than ever before.”

The combined companies will focus on accelerate the use of AI in claims processing, fraud detection, and payment integrity to deliver greater speed, accuracy and transparency for providers and third-party payers, the companies said.

“Homecare is one of the most human, most important and most overburdened parts of the health care system,” said Ilya Vakhutinsky, CEO of Careswitch. “This agentic-first approach is the first of its kind in the industry and we are poised to be at the forefront of homecare, taking intelligent automations to an entirely new level with AI. Paradigm was the first to introduce revenue cycle management to homecare. We are confident that we can continue to lead the industry in building solutions that automate the hardest parts of billing and claims and prevent errors before they occur, so agencies can focus on providing the best care possible.”