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Doximity Acquisition, GPT-5, and AI Gets Banned for Therapy
August 11, 2025
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Together with
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“The challenge for any entrepreneur is to understand what the future possibilities are. You have to build a company in a way that works now, but also when you’re 10x or 20x your current size.”
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Aledade CEO Dr. Farzad Mostashari
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Doximity is setting out to prove that it’s more than “LinkedIn for doctors” after snapping up clinical reference AI startup Pathway for $63M.
Clinical workflows are the new social media… or at least that’s the plot of Doximity’s growth story.
- Act 1: Doximity’s newsfeed and networking features set the stage for pharma advertising by attracting physicians to the platform.
- Act 2: Complementary workflow tools like scheduling, telehealth, and Doximity Dialer gave physicians a reason to stick around longer than their news sweep.
- Act 3: The AI suite took engagement a step further with Doximity GPT and Doximity Scribe, which helped drive quarterly active users to a record 1M physicians in Q1.
Enter Pathway. The Montreal-based startup’s AI helps physicians answer questions at the bedside using information from Pathway Corpus, “one of the largest structured datasets in medicine” that spans nearly every guideline, journal, and landmark trial.
- Pathway’s cross-linked structure reportedly allows it to understand complex drug interactions and score the strength of medical evidence, such as weighing validated clinical trials more than case studies.
- The acquisition will bring that same “robustness” to the back-end of Doximity GPT, and the integration is already live for thousands of physician beta testers.
If you can’t beat ‘em, buy ‘em. It’s tough for physicians to see your pharma ads if they’re not using your platform, so Doximity is acquiring its own workflow solutions to keep users from venturing off to use competing products from OpenEvidence or Wolters Kluwer.
- Clinicians have also apparently been using Doximity GPT outside of office hours more than Doximity’s other tools, which helps with serving ads around the clock.
- Doximity’s AI suite and workflow modules already account for over 20% of its ad revenue, and it now expects that share to overtake its newsfeed in the next few years.
The Takeaway
Doximity is looking to make AI the star of its next act, and if OpenEvidence doesn’t want to share its script, then Pathway will have to steal the show.
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- GPT-5 Makes Medical Moves: GPT-5 has landed, and OpenAI put healthcare front and center throughout the launch day festivities. CEO Sam Altman revealed that medical questions are “one of the top reasons” people use ChatGPT, and said that GPT-5 boasts the best performance yet on the new HealthBench benchmark (46%). Apparently the latest model places a newfound importance on factual accuracy, which was on full display when OpenAI invited a cancer patient on stage to share how GPT-5 helped her understand her diagnosis. There definitely didn’t seem to be much regulatory red tape holding back the messaging in the demo.
- Omada Reports Strong Q2: Not to let Hinge have all the fun, Omada continued the hot start to earnings season by reporting a 49% jump in Q2 revenue to $61M. Membership growth climbed 52% to 752k due to strength in both GLP-1 companion programs and core cardiometabolic offerings, with CEO Sean Duffy highlighting the company’s AI momentum in supporting its own care teams and members – including real-time nutrition guidance from its new OmadaSpark agent. Hat tip to Omada for putting its IPO funds to good work by wiping out its entire $31M debt load.
- Illinois Bans AI for Therapy: Illinois just became the first state to ban the use of AI in mental healthcare, citing concerns about chatbots enabling dangerous behaviors. The new law prohibits anyone from using AI to provide therapy or psychotherapy services, while still allowing the use of AI for administrative support for licensed behavioral health professionals. This will reportedly protect patients from unregulated AI products, while also “protecting the jobs of Illinois’ thousands of qualified behavioral health providers.”
- What Motivates Hospital Reviews? A large analysis of over a million online reviews for 128k healthcare facilities uncovered some interesting takeaways for providers. There was a nearly even split between the positive reviews (50%; 4 or 5 stars) and negative reviews (46%; 1 or 2 stars), but the factors motivating the ratings were further apart than you might expect. The strongest positive correlations involved staff kindness (r = 0.32) and anxiety relief (r = 0.32), while the strongest negative correlations involved payment issues (r = 0.25) and poor treatment (r = 0.24).
- Elion Lands Seeds to Scale: Elion locked in $9.3M of seed funding to help healthcare orgs navigate the endless barrage of digital health solutions launching on a daily basis. The research and intelligence platform is basically a giant filter for all the noise in the market, helping leaders discover, evaluate, and adopt new technologies. It’s still not entirely clear how Elion generates revenue considering how much valuable intel they give away on their website, but it’s great to hear that 60% of U.S. health systems now lean on their marketplace to compare vendors.
- Bunkerhill Debuts Carebricks Chat: Bunkerhill just rounded out its Carebricks clinical reasoning platform with Carebricks Chat, allowing clinicians to engage with a patient’s entire medical history using natural language. Carebricks leverages FDA-cleared AI algorithms to help health systems analyze patient data, surface risks, and automate appropriate next steps across populations. Carebricks Chat brings the same reasoning engine to the individual patient level, providing on-demand access to the platform’s insights.
- Specialty Spending: A McKinsey report showed that specialty care accounts for a skyrocketing share of healthcare spending. Spending on six specialties has been climbing 35% faster than the rest of the pack (orthopedics, oncology, cardiology, women’s health, behavioral health, nephrology), with these patients accounting for 68% of total commercial and Medicare spending in 2023. McKinsey points to VBC as a potential fix. Over half of traditional Medicare beneficiaries are under a value-based contract for primary care, yet the same is true for only 28% in nephrology, 20% in orthopedics, and under 5% in the other four specialties.
- Former X CEO Pivots to Healthcare: Linda Yaccarino is settling into a new role at the helm of a GLP-1 telehealth company just weeks after her exit as the CEO of X, formerly known as Twitter. Yaccarino was brought on to lead eMed Population Health’s expansion into new employer and government partnerships, with the hiring board undeterred by a complete lack of healthcare experience due to her ability to “navigate complex markets.” Probably a safe move given that slinging blockbuster drugs is probably easier than covering for Elon to hold onto advertisers.
- AI of Malpractice Risk: Another novel non-clinical use case for AI could be in predicting malpractice risk from specific medical procedures. Researchers at South Korea’s Asan Medical Center developed Dr. Lawn, an AI algorithm that analyzes and summarizes medico-legal risk based on data from over 15k previous legal rulings. Users can input a patient’s symptoms, diagnosis, and medical procedures and receive a summary of relevant legal precedents, as well as the guidelines courts used for legal verdicts – and how to avoid such judgments.
- UnitedHealth + Amedisys: UnitedHealth Group and Amedisys are finally set to complete their $3.3B merger after agreeing to a DOJ settlement that’ll see them divest 164 home health and hospice locations. The tentative greenlight has been hard fought, with the merger originally announced in mid-2023 before getting tied up in antitrust litigation. Under the terms of the agreement, BrightSpring will acquire 115 divested sites, while Pennant will grab 49.
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