Stitch Employment Services

What Stitch Employment Services does

Stitch Employment Services (operating as Stitch PEO) is a professional employer organization built exclusively for independent medical practices in the United States. Founded in 2023 in collaboration with healthcare venture studio Redesign Health, the company provides co-employment-based HR administration, payroll processing, employee benefits administration, and regulatory compliance management as a bundled service. Its target customers are small and mid-sized independent practices that lack dedicated HR infrastructure but face healthcare-specific workforce challenges such as HIPAA, OSHA, FMLA, and Stark Law compliance, on-call scheduling complexity, and difficulty competing with large health systems on employee benefits. Stitch's vertical focus spans OB/GYN, dermatology, musculoskeletal (orthopedics, physical therapy, pain management, sports medicine), and — as of February 2025 — dental practices.

Stitch's platform is delivered through cloud-based Employee and Manager self-service portals, a mobile application, biometric time-reporting, and a Human Resource Information System (HRIS) built on industry-leading infrastructure that the company states supports 80,000 companies, 2 million employees, and $80 billion in annual payroll processing. Add-on modules include PrismHR Hiring (an applicant tracking system launched November 2025), a Learning Management System, and a document management system with e-signature capabilities. Distribution runs through a direct enterprise sales motion with regional directors covering California, Illinois, and Tennessee, layered on top of an EHR channel-partner ecosystem that includes eClinicalWorks, Greenway Health, CureMD, athenahealth, and ModMed, supplemented by partnerships with recruiting (MindBody Talent), patient engagement (TeleVox), financial services (Flychain), and dental software (Practice By Numbers).

Stitch generates revenue as a managed-services PEO, with fees typically structured as a percentage of payroll or a per-employee rate across the co-employment relationship. The company is privately held, headquartered in Brentwood, California (San Francisco Bay Area) with a New York office, has 11–50 employees, and reports 50+ customers as of December 2024. It closed an $8.75 million seed round from Redesign Health in June 2024.

Name

Stitch Employment Services

Legal name

Stitch Employment Services

Website

https://stitchpeo.com

Company type

Private

Founded year

2023

Operating status

Operating

Headcount range

11–50 employees

Short description

Stitch PEO is a professional employer organization providing HR, payroll, benefits administration, and compliance services exclusively to independent U.S. medical practices — including OB/GYN, dermatology, musculoskeletal, and dental specialties — through a co-employment model.

Ownership category

akta.pro rank

Product category

Professional Employer Organization (PEO) Services

NAICS

Professional Employer Organizations (561330), Professional Employer Organizations (56133)

SIC

Services-Employment Agencies (7361)

akta.pro primary industry

Professional Employer Organization (PEO) / Co-Employment Services (BPACAHAB)

akta.pro secondary industries

Onboarding, Offboarding & Employee Lifecycle Administration (BPACAHAL), Workforce Compliance & Employment Law Risk Management (Local Labor Law, Tax, Statutory) (BPACAHAH), HR Operations Administration (HRIS Admin, Records, Employee Data Mgmt) (BPACAKAC), Workers’ Compensation Insurance for Staffing/PEO & Contingent Workforce (FSAJAEAE)

Keywords

• PEO services healthcare
• Medical practice HR outsourcing
• Healthcare payroll administration
• Employee benefits administration
• Compliance risk management

Headquarters

HQ city

Newyork

HQ country

United Kingdom

HQ region

Europe

Offices2 records

Markets served

GTM type

B2B

Offering type

Services

Cost components

Personnel, Operations, Technology or R&D, Marketing or Sales

Revenue model

1. PEO Co-Employment Services: Professional Employer Organization (PEO) services where Stitch becomes the co-employer of record for healthcare practice employees, providing HR, payroll, benefits, and compliance services. Revenue generated through service fees typically based on a percentage of payroll or per-employee pricing.

Go-to-market motion3 records

Distribution channels5 records

Marketing channels7 records

Core offering

Stitch Employment Services, operating as Stitch PEO, is a Professional Employer Organization (PEO) that provides co-employment HR outsourcing services to independent medical practices across the United States. The company bundles payroll administration, employee benefits administration, human resource management, and risk and compliance management into a single healthcare-specific platform, enabling independent practices to access enterprise-level workforce infrastructure while maintaining operational independence.

Product overview

Stitch PEO is a unified PEO (Professional Employer Organization) platform built exclusively for independent healthcare practices. The core offering is the Stitch PEO co-employment model, which bundles HR administration, payroll processing, benefits administration, and compliance management into a single service. These capabilities are delivered through the Employee Portal and Manager Portal — self-service web interfaces for employees and practice managers, respectively. Supporting modules include a Benefits Administration service (medical, dental, vision, 401K, EAP), a Payroll Administration service (tax withholding, direct deposit, time-tracking), a Human Resource Management module (certified HR expertise, HRIS, handbook guidance), and a Risk and Compliance Management module (workers' comp, EPLI, federal/state/local compliance). Additional add-on modules include PrismHR Hiring (an applicant tracking system launched in November 2025), a Learning Management System (LMS), and a Document Management System with eSign. The platform connects independent healthcare practices — including OB/GYN, dermatology, musculoskeletal, and dental specialties — to enterprise-level HR infrastructure and benefit packages through a co-employment model.

Differentiator

Problem solved

Functional benefit

Products and services

• Stitch PEO Co-Employment Services A Professional Employer Organization co-employment service that becomes the co-employer of record for healthcare practice employees, bundling HR administration, payroll processing, employee benefits, and compliance under a single vendor relationship for independent medical practices.
• Benefits Administration Service Administration of tiered medical, dental, and vision benefit plans, short- and long-term disability and life insurance, 401(K)/retirement plans, and Employee Assistance Programs (EAP) for independent healthcare practices.
• Payroll Administration Service Full-service payroll processing covering employee onboarding for payroll, schedule management, biometric time-reporting, federal and state tax withholding and filings, direct deposit, early wage access, and pay cards for healthcare practice employees.
• Human Resource Management Service Certified HR expertise, a Human Resource Information System (HRIS), employee handbook and policy guidance, talent management tools, and an HR resource library provided to healthcare practices through the PEO co-employment model.
• Risk and Compliance Management Service Workers' compensation policy plans, Employment Practices Liability Insurance (EPLI), workers' comp claims management, and support for federal, state, and local compliance requirements including I-9/immigration compliance, EEO-1 reporting, new hire reporting, and labor poster management.
• PrismHR Hiring (Applicant Tracking System) An applicant tracking system introduced to help independent healthcare practices streamline recruiting, attract talent faster, and manage hiring workflows with customizable careers pages.

Quantifiable outcome

• 35% savings on HR costs for OB/GYN practices
• +3 more outcomes

Named customers7 records

Segments6 records

Ideal customer profiles5 records

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Integration2 records

Feature7 records

Partnerships

Nine partnerships are on record, tiered core and minor.

• eClinicalWorkscoreTechnology or Integration · 3 December 2025Partnership with eClinicalWorks, one of the largest EHR and practice management solutions serving over 150,000 physicians. The partnership provides eClinicalWorks users access to specialized HR, benefits, payroll, and compliance support. This is the third EHR partnership Stitch PEO has signed in recent months.
• Greenway HealthcoreTechnology or Integration · 19 August 2025Partnership with Greenway Health, a provider of EHR, practice management, and revenue cycle management solutions. The partnership helps practices grow profitably, remain compliant, work more efficiently, and improve patient outcomes while accessing Stitch PEO's HR and payroll services.
• TeleVoxcoreStrategic or Co-development Partner · 15 April 2025Collaboration with TeleVox, an industry-leading provider of omnichannel patient relationship management platforms. TeleVox clients gain access to Stitch PEO's comprehensive workforce solutions including HR, payroll, and benefits administration to optimize administrative functions and enhance employee satisfaction.
• Practice By NumberscoreStrategic or Co-development Partner · 24 February 2025First dental partnership with Practice By Numbers, an all-in-one dental practice software. Stitch PEO provides Practice By Numbers' network of dental practices with access to streamlined HR infrastructure including payroll processing, compliance management, and tailored employee benefits. This marks Stitch PEO's entry into the dental sector.
• MindBody TalentcoreStrategic or Co-development Partner · 16 January 2025Partnership with MindBody Talent, a national healthcare recruiting company serving leaders in Functional, Integrative, Personalized, Aesthetic, and Regenerative Medicine. The partnership addresses talent acquisition and workforce optimization, combining recruitment expertise with Stitch PEO's HR and benefits solutions. MindBody Talent has served practices in 22 U.S. states.
• FlychaincoreStrategic or Co-development Partner · 15 October 2024First financial services partner providing enterprise-level financial tools for healthcare providers including accounting, capital, valuations, treasury management, savings, and revenue cycle intelligence. The partnership provides healthcare practices a streamlined, cost-effective approach to running a practice with integrated HR and financial management.
• CureMDcoreTechnology or Integration · 16 September 2024Strategic partnership with CureMD, a leader in cloud-based EHR, Practice Management, and Revenue Cycle Management solutions. CureMD offers clients access to Stitch's specialized outsourced HR services including payroll processing, employee benefits administration, workers compensation, and regulatory compliance assistance.
• athenahealthcoreTechnology or IntegrationListed on athenahealth's marketplace as a workforce solution for medical groups and health systems. Athenahealth is a leading provider of network-enabled software and services for medical groups nationwide.
• Optimax Consulting ServicesminorStrategic or Co-development PartnerPartnership with Optimax Consulting Services to support independent healthcare practices with comprehensive consulting services.

Scale indicators9 records

Recent moves6 records

Expansion highlights6 records

Broad incumbents

• TriNet: TriNet is a major PEO focused on small and mid-sized businesses, providing HR, payroll, benefits administration, and compliance support. It has built vertical expertise including healthcare-adjacent segments and competes for the same customer profile Stitch targets.
• ADP TotalSource: ADP TotalSource is the PEO division of ADP, providing co-employment, payroll, benefits, and HR outsourcing to small and mid-sized businesses across verticals. It is the most direct large-scale analog to Stitch's co-employment model but lacks Stitch's healthcare-specific specialization and EHR partnership distribution.
• Insperity: Insperity is one of the largest publicly traded PEOs in the U.S., offering co-employment HR, payroll, benefits, and compliance services to SMBs. While it serves healthcare practices, it does so as part of a broad horizontal portfolio rather than through the deep healthcare-specialized stack Stitch has built.
• Paychex: Paychex is a leading payroll, HR, and benefits administration provider serving SMBs including healthcare practices. While not strictly a PEO in all offerings, it provides overlapping HR/payroll/benefits technology for the same independent-practice buyer Stitch targets.
• Optum Workforce Solutions: Optum (UnitedHealth Group subsidiary) provides workforce, HR, and healthcare operations services across providers and practices. It is a healthcare-native incumbent with deep provider relationships, making it a relevant adjacent competitor for healthcare-specialized HR services.

Direct peers

• Justworks: Justworks provides PEO-style co-employment, payroll, benefits, and HR compliance services to SMBs through a tech-forward platform. It represents a comparable technology-enabled PEO model even though it is not healthcare-verticalized.
• Vensure Employer Services: Vensure is one of the largest privately held PEO/HR outsourcing providers in the U.S., offering co-employment, payroll, benefits, and risk management. It competes directly with Stitch for healthcare practice customers via its broad PEO offering.
• Sequoia One: Sequoia One is a tech-forward PEO serving SMBs with HR, payroll, benefits, and compliance delivered through its platform. Like Stitch, it bundles employer-of-record services with a unified technology experience, although it is horizontal rather than healthcare-specific.
• Workpartners: Workpartners is a healthcare-focused HR outsourcing, employee benefits, and risk management provider serving hospitals, physician groups, and dental practices. It is one of the closest direct peers to Stitch given its healthcare-specialized PEO/HR outsourcing focus.
• Employer Flexible: Employer Flexible is a PEO and HR outsourcing provider offering payroll, benefits, and compliance services to small and mid-sized businesses with vertical depth across healthcare and professional services. Comparable model and customer profile to Stitch.

Market position

Strengths5 records

Weaknesses5 records

Competitive moat6 records

Key risks7 records

Key highlights7 records

Customer concentration

• LinkedInlinkedin.com/company/stitchpeo

Revenue estimate

Valuation estimate

Number of profiles

Profiles10 records

Funding overview

Funding rounds1 record

Investors

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A

Investments

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about Stitch Employment Services