Category: Startups

Abridge Moves Upstream With $300M Series E

Posted on by Jason Barry

The ambient AI segment is turning into a bigger spectacle than the NBA Finals, and Abridge just dunked on it with $300M of Series E funding.

Big-time startups have big-time valuations. The latest round doubled Abridge’s valuation to $5.3B, up from a paltry $2.5B when it closed its last nine-figure round four short months ago.

  • We’ll leave it to the VCs to decide whether Abridge is worth twice as much as it was in February, but it’s now deployed at 50% more health systems – over 150 in total.
  • Abridge also reportedly hit $117M in contracted annual recurring revenue as of Q1, and is on pace to support upwards of 50M medical conversations this year alone.

Abridge is aiming upstream. The new capital was earmarked for “automating more of what happens behind the scenes and enabling revenue cycle management teams to operate with unparalleled efficiency.” 

  • That means embedding revenue cycle intelligence earlier in the clinical conversation, and eliminating unnecessary back-and-forth between clinicians and billing teams.
  • In Abridge’s own words, the ultimate aim is to “help achieve faster reimbursement cycles and minimize the risk of denials.”

The ambient AI race needs a rebrand. As Abridge and its competitors start lunging toward every workflow within arms reach of the clinical conversation, their platforms are quickly pushing past documentation. Within just the last week:

  • Ambience Healthcare announced that its coding-aware ambient AI platform saves St. Luke’s Health System $13k+ per clinician annually, then followed that up by launching Patient Recap for pre-visit chart summaries.
  • Commure raised $200M and rounded out its RCM and documentation capabilities with AI agents that handle scheduling, referrals, and prior auths. 
  • Nabla closed $70M to build out an Adaptic Agentic Platform that enables real-time coding assistance, direct EHR commands, and new capabilities for nurses.
  • There’s also the 1,000 pound gorilla formerly known as Nuance, but the incumbent scribing champ hasn’t been too vocal since rolling out Microsoft Dragon Copilot earlier this year.

The Takeaway

The hottest segment in digital health is boiling over into revenue cycle management, and Abridge is cranking up the heat with its Series E funding. Topping off the warchest comes with golden strings attached, so expect the pace to only accelerate from here as Abridge looks to live up to its valuation by coming out on top in the RCM landgrab.

Tennr Raises $101M Series C for AI-Powered Referrals 

Posted on by Jason Barry

Tennr just raised $101M of Series C funding to have AI help solve one of healthcare’s most timeless challenges: fax machines. 

Tennr got its start in 2021 improving the patient intake and documentation review process, but has quickly expanded its capabilities to make sure that patients don’t get lost in a “black hole” during the referral process.

  • More than one-third of Americans receive a medical referral each year, half of which aren’t completed due to miscommunication, misdirected referrals, or missing information.
  • Tennr’s orchestration platform and proprietary language models automate these workflows to help providers convert more patients, cut denials, and deliver care without growing their teams.

The secret sauce is Tennr’s specialized language models (RaeLM), optimized to understand the nuanced data in medical determinations and evaluate it against strict payor criteria.

  • Tennr integrates with over 50 types of e-faxes, phone lines, emails, and portals to collect patient information, then leverages RaeLM to structure the data into usable information that can be shared with EHRs and pharmacy management systems.
  • The thesis was that if Tennr could read the documents and structure the data, it would be in a good spot to bolt-on more services – such as its eligibility benefits product, patient communication solution, and referral management suite. 

The fresh funds will fuel the launch of the Tennr Network, designed to equip referring providers, receiving providers, and patients with real-time visibility into the referral status.

  • Referring providers can see the status of every patient they’ve sent out, eliminating phone tag and guesswork.
  • Receiving providers can track the status of every referral, see which need more documentation, and identify which sources are driving the most conversions.
  • Patients can see when their referral was accepted, when it’s scheduled, and what to expect to pay – matching the “transparency we take for granted in food delivery or e-commerce.”

The Takeaway

Faxes are here to stay, and Tennr has $101M to make sure that they’re actually serving the practices using them. The plan isn’t to give healthcare a new AI tool, but to use AI to help the industry get more out of the tools it already has.

Nabla Series C Brings Agentic AI to the Heart of Healthcare

Posted on by Jason Barry

Healthcare’s “zero-screen future” is looking closer than ever after Nabla locked in $70M of Series C funding to put AI agents to work restoring the human connections at the heart of the industry.

Ambient AI is hot, but Agentic AI is hotter. The round follows a wave of adoption across U.S. health systems as Nabla sets its sights on growing beyond its roots in ambient documentation.

  • Nabla’s AI assistant is now used by 85k clinicians across 130+ healthcare orgs, ranging from FQHCs and rural hospitals to academic medical centers and national providers.
  • In the past six months, Nabla’s grown its Live ARR by over 5X (meaning its annual recurring revenue from clients that have already gone-live, not “contracted” revenue, and definitely not annual run rate).

The key to Nabla’s success has been its ability to deliver highly personalized AI experiences without compromising on reliability, and the fresh funds will help build out an Adaptive Agentic Platform that brings that same ethos to new use cases:

  • Proactive Coding Agent – a real-time coding assistant that flags billing issues and surfaces compliance nudges.
  • Context-Aware Agent – strengthens existing support for patient summaries and pre-charting with direct EHR commands and the ability to initiate orders.
  • Custom Care Setting Agent – adds new capabilities for nurses and inpatient teams to bring tailored support to frontline workers.

The Agent Era has arrived. The days when every ambient scribe demo got a standing ovation are long gone, and health systems are looking for AI that can automate increasingly complex workflows (or better yet, generate revenue that justifies its cost).

  • Nabla clearly got the memo, but so did competitors like Abridge, Ambience, and Suki – all of which are actively working to add coding and other new features to their platforms.
  • The race is on, and the entire healthcare industry – patients and providers alike – should be better off because of it.

The Takeaway

Nabla’s been making quick progress toward some ambitious goals, and agentic AI just raised the goalpost even higher. In the words of CEO Alex LeBrun, “Our mission: bring agentic AI to clinicians in a safe, compliant, and ethical framework. The journey?‍ 1% done.”

Ellipsis Health Closes Series A, Unveils Sage AI Care Manager

Posted on by Jason Barry

Care management gaps are becoming a pressing problem as the provider shortage deepens, and Ellipsis Health just raised $45M of Series A funding to show why empathy is the answer. 

Ellipsis put Sage front and center in the announcement, unveiling its emotionally intelligent AI care manager that expands staffing capacity through proactive patient engagement.

  • Sage’s Empathy Engine leverages Ellipsis’ patented vocal biomarker tech and training from millions of real clinical conversations to support the patients driving a majority of healthcare costs: those with complex physical, behavioral, and social needs.
  • Unlike traditional AI agents, Sage adjusts its tone and approach based on a patient’s emotional state, exactly how a human care manager would when conducting health risk assessments, post-discharge follow-ups, or care transitions.

The Series A investor roster suggests that Ellipsis has some strong tailwinds working for it.

  • The round was led by Salesforce (workflow integration through Salesforce Health Cloud), Khosla Ventures (tech validation from an AI fund and early investor in OpenAI), and CVS Health Ventures (plenty of Aetna members to reach meaningful scale).
  • Those investors will only help Ellipsis land and expand across more enterprises as it continues building evidence that Sage moves the needle with patient outcomes.

Competition is heating up. Companies like Hippocratic and Innovaccer have been rolling out fleets of AI agents that can handle routine tasks like appointment scheduling, but Ellipsis is setting out to prove that empathy is a difference maker in actual case management.

  • It’s the little things between visits that can decide whether a patient gets their hypertension under control, like walking them through lab results or making sure they take their medication.
  • It’s also the same little things that slip through the cracks when you have a staff shortage or burned out clinicians, and a little empathy could go a long way toward filling these gaps and driving the behavior change that leads to better outcomes.

The Takeaway

Ellipsis envisions a future for healthcare where AI can “extend human capabilities while preserving the empathy and clinical judgment that defines great care.” Sage is the tool that Ellipsis built to carve that future, and it now has $45M to put it in the hands of more providers.

Cohere Raises $90M for AI Prior Authorizations

Posted on by Jason Barry

Cohere Health just locked in $90M of Series C funding to keep doing what it does best, offloading painful prior authorization processes from humans to AI.

Cohere works with health plans and risk-bearing providers to automate prior auth workflows and accelerate time to care… or at least quicker denials.

  • The platform’s “precision clinical insights” mean up to 90% of requests can be auto-approved, slashing administrative burden and opening up bandwidth for more collaboration between physicians and payors on critical cases.
  • Cohere’s been moving quickly. It’s raised 200M since launching in 2019, and now processes over 12M prior auths for 600k+ providers annually.

As an early mover in the booming segment, Cohere is doing more than digitizing an outdated prior auth system.

  • Its AI facilitates new ways for plans and providers to collaborate while incorporating the best clinical evidence / guidelines, an approach that seems to be working.
  • Cohere boasts a 93% provider satisfaction rating, and is now setting its sights on other areas of the healthcare ecosystem.

The Series C funds will accelerate Cohere’s next phase of growth, which involves scaling up its Cohere Unify platform and adding a thick layer of AI paint to the entire portfolio.

  • Cohere Unify not only streamlines payor-provider collaboration, but also modernizes utilization management by personalizing provider workflows and optimizing engagement with real-time performance data.
  • These capabilities are the foundation for Cohere’s broader vision of transforming clinical decision-making, and it sounds like we won’t have to wait long to see them expand to new use cases like synthesizing records when multiple departments are involved.

The Takeaway

Prior authorizations are a pain, full stop. If Cohere can use its Series C to give clinicians more time practicing at the top of their license instead of going back and forth with payors, that seems like a great outcome all around.

Chronic Care Startup Omada Files for IPO

Posted on by Jason Barry

The IPO winter might finally be over after chronic care startup Omada Health filed to go public just a few short weeks after Hinge broke the ice.

The digital health darling is best known for its virtual diabetes management programs, but has grown into a comprehensive offering for hypertension, MSK (courtesy of its 2020 Physera acquisition), and a GLP-1 Care Track that drives sustainable results through behavior change.

The S-1 vital signs are mostly encouraging:

  • Omada generated $55M in Q1 revenue, up 57% YoY.
  • Gross margin is strong and getting stronger at 60%.
  • 2024 revenue climbed 38% to $170M.
  • Profitability remains elusive with a $47M loss last year.

Omada has more than 2,000 customers, primarily employers and health plans, with 679k members enrolled in at least one of its programs.

  • Members engage an average of 30 times per month, and over half are still active at the one-year mark.

A key part of Omada’s growth story is its partnership with Cigna, which made the GLP-1 Care Track a core component of Evernorth’s EncircleRx program for employers looking to manage the explosion of interest in the drugs.

  • Most of Omada’s 2024 revenue came directly from Cigna (55%), a double-edged sword considering that investors don’t exactly love having that many eggs in one basket.

Looking ahead, Omada plans to keep producing more evidence that its behavior change interventions make a meaningful impact on long-term success with GLP-1s.

  • The first wave of digital health IPOs – think Teladoc and Amwell – banked on convenience over outcomes and eventually got burned.
  • Omada is setting out to prove that the second wave can truly move the needle on outcomes and costs, making them non-negotiables rather than nice-to-haves.

The Takeaway

There’s a lot riding on these IPOs. If Omada and Hinge can stick the landing, it could be the spark that reignites investor confidence in digital health. No pressure, we’re all rooting for you.

Carta Healthcare Closes $18.25M for Data Abstraction AI

Posted on by Jason Barry

Manual clinical data abstraction is a prime target for AI automation, and Carta Healthcare is looking to hit the center of the bullseye after raising $18.25M of Series B1 funding.

Carta’s data abstraction platform leverages AI and a team of expert abstractors to automate the collection of clinical data and surface actionable insights.

  • The platform converts both structured and unstructured data into standardized datasets, giving healthcare orgs a foundation of high-quality data to build on. 

Although AI’s potential in the data abstraction arena has attracted an army of new competitors, Carta’s been duking it out against manual workflows since 2017.

  • That gave it a big head start to refine its tech and build trust with partners, many of which participated in the round, including MemorialCare, Memorial Hermann, and MGB.
  • Carta plans to put the new capital toward expanding its customer footprint, particularly in the life sciences market where it can help match patients to clinical trials using AI it acquired from Realyze.

The Takeaway

Traditional methods of data abstraction are about as labor-intensive and time-consuming as you can imagine, which makes them ideal targets for AI solutions and startups like Carta that are bringing them to market.

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hellocare.ai Growth Round Fuels Smart Hospital Transformation

Posted on by Jason Barry

The shift from point solutions to platform approaches has been one of the defining trends of the past few years, and hellocare.ai is positioning itself to capitalize on the transition with $47M of growth funding from prominent health system backers.

hellocare.ai’s unified virtual care platform transforms any hospital room into a connected care environment, enabling a wide range of use cases seamlessly embedded into existing EHRs, infrastructure, and care delivery models. That includes:

  • Virtual Nursing
  • Virtual Sitting
  • Virtual Consultation
  • Ambient Documentation
  • Hospital-at-Home

By keeping its full technology stack in-house, hellocare.ai aims to differentiate itself through speed, customization, and continuous innovation.

  • Everything from the hardware and software to the EHR-integration engine is baked into the platform to make it as enterprise-ready as possible for smart hospitals.
  • By pairing the platform with a flexible hybrid clinical care team model, hellocare.ai enables health systems to quickly scale AI-enabled hybrid care across their entire organization.

Over 70 health systems are already using hellocare.ai to consolidate various telehealth solutions – many of which were adopted out of pandemic-driven necessity – into a unified experience for both patients and clinicians.

  • AdventHealth not only participated in the round, but also announced that it’s rolling out hellocare.ai across more than 50 hospitals and 13k patient rooms as part of an enterprise-wide implementation.
  • Both Bon Secours Mercy Health and UCHealth also came on as investors and are actively deploying the platform across their systems. Votes of confidence don’t get much stronger than that.

The Takeaway

Health systems have been vocal about needing a unified virtual care platform to simplify care delivery and increase patient engagement – and that’s exactly what hellocare.ai designed its platform to do. Meeting those needs while demonstrating a measurable ROI is another challenge entirely, but hellocare.ai’s investor roster is a clear sign that some major players believe in its roadmap.

Thatch Raises Series B to Dislodge Health Coverage From Employment 

Posted on by Jason Barry

Help is on the way for employers grappling with rising healthcare costs after Thatch locked in $40M of Series B funding to help tailor benefits to the needs of employees.

Thatch is dislodging health coverage from employment by providing individual coverage health reimbursement arrangements (ICHRA) that let employees choose their own benefits.

  • By blending fin-tech and health-tech tools, Thatch gives employers a way to “abstract away the complexity” of the ICHRA law that passed in 2020, which enabled them to provide a monthly budget to employees for selecting their own health benefits.
  • The Thatch platform streamlines budget setting, plan selection, and lowers costs through pooled purchasing power. If employees spend less than their budget, they receive a Thatch debit card to use for things like prescriptions, copays, and therapy.

Thatch CEO Chris Ellis shared on LinkedIn that one of the reasons why health coverage feels so broken is because it wasn’t designed for humans, it was designed for HR departments. 

  • Ellis has a different vision, and it’s being met with open arms: “Imagine choosing your health plan like you choose your car. Imagine keeping it when you switch jobs.”
  • Although Thatch hasn’t revealed any official revenue numbers, it’s reportedly onboarded over a thousand companies in the last 18 months – including big names like Jersey Mike’s and Dave’s Hot Chicken – and grown revenue by 8X year-over-year.

The Series B funding will allow Thatch to “double down” on its vision to make health benefits  accessible for every American through deeper integrations with carriers and payroll systems.

  • That includes an API service that allows partners to embed ICHRA directly within their own product, which already has QuickBooks signed on as a marquee client.
  • Thatch is also bringing on Gary Daniels, the former CEO for UnitedHealthcare’s Pacific Northwest division, as its new Chief Growth Officer to help make it all happen.

The Takeaway

Most current health benefits solutions were designed for a workforce that stayed with a single company for most of their careers, and have had a tough time keeping up with today’s dynamic labor market. Thatch is among a new pack of startups building the infrastructure for a modern experience, and it seems like both employers and employees have a lot to look forward to.

Layer Health Takes AI to Chart Review With Series A

Posted on by Jason Barry

The healthcare AI momentum isn’t showing any signs of letting up, and chart review automation startup Layer Health just added another $21M to the segment’s quickly growing venture total.

Layer’s AI platform leverages LLMs trained on longitudinal patient data to automate data abstraction for the medical chart reviews that underpin a wide range of clinical and administrative workflows, including: 

  • Quality Reporting & Clinical Registries – extracting data from clinical registries and quality measurement programs to improve accuracy and ensure compliance
  • Hospital Operations & Revenue Cycle – enhancing clinical documentation integrity and coding processes to optimize reimbursement and reduce denials
  • Clinical Decision-Making & Patient Care – providing physicians with real-time insights that synthesize a patient’s full medical history to support personalized treatments
  • Clinical Research & Real-World Data – accelerating patient cohort identification for research studies and improving real-world evidence generation 

Chart review has been a longstanding challenge for most health systems, which can spend upwards of $6M per hospital on personnel costs for care quality data reporting.

  • At the same time, this data represents an invaluable resource for unifying care data with clinical and financial outcomes, enabling treatment decisions to be mapped to their real-world impact.

Flare Capital Partners’ investment memo for Layer laid out how the clinical registries that map chart information to direct outcomes have historically been hamstrung by their unstructured source data.

  • Abstracting this data into a usable format is a time-consuming manual process, and most technological fixes have usually only involved automating small parts of it.
  • By combining the reasoning ability of large language models with the cost-efficiency of small language models, Flare believes that Layer can capture a major slice of the multi-billion dollar care quality reporting market (plus another chunk of the life sciences sector’s growing appetite for real-world data).

The Takeaway

Surfacing insights from medical charts requires peeling back countless layers of structured and unstructured data, which makes it particularly well-suited for both AI solutions and ambitious startups like Layer that are bringing them to market.

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