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AI Metrics, DocGo Steady, and Optum Leaves UK
October 30, 2025
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Together with
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“We don’t have to accept the status quo. What’s so powerful about this moment in AI and technology overall is that everybody feels like they have agency and that they have a vision for what things can be.”
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Abridge COO Julia Chou
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Of all the AI market overviews that have hit the wire recently, none have generated more buzz than Menlo Venture’s State of AI in Healthcare. One look at the report and it’s easy to see why.
First things first. Here’s a couple high-level callouts before we zoom in on the details:
- Healthcare AI spending has already topped $1.4B in 2025 – 22% of healthcare orgs have now implemented domain-specific AI tools, a 7x increase over last year [Chart 1].
- 85% of all healthcare AI spend is currently flowing into startups (faster cycles, clearer ROI), rather than incumbents (often layering AI on legacy platforms) [Chart 2].
Providers accelerate, payors deliberate. Providers dominate AI adoption in healthcare, especially health systems – supplying $1B of the $1.4B total spending.
- Outpatient providers represent $280M, while payors surprisingly contribute just $50M.
The song remains the same. Menlo found that leading health systems are choosing AI based on themes we’ve covered plenty of times before. They prioritize:
- Tech maturity – providers prioritize production-ready solutions that perform at scale.
- Risk level – tools that don’t directly interface with patients see less scrutiny.
- Quick value – a 2025 favorite, rapid ROI and organizational confidence are essential.
What solutions check all the boxes? Two categories account for the lion’s share of AI budgets, in large part because they quickly address acute operational pain points.
- Ambient documentation ($600M), no surprise here. This puts it in perspective [Chart 3].
- Coding and billing automation ($450M), hard to think of a quicker ROI.
Bonus chart. Here’s the closest we’ll ever get to official ambient AI market share [Chart 4].
IT is good, services are great. Total U.S. healthcare administration spending reaches $740B annually, yet IT spend represents <10% of that. The report has a top tier breakdown [Chart 5].
- AI’s frontrunners found success carving into existing IT budgets, but the future victors could be the teams that convert services dollars into software dollars for the first time.
- AI offers the ability to automate workflows that have always been “people-intensive” – prior auth, patient engagement, front-office RCM – and Menlo believes 80% of this market is still completely untapped.
The Takeaway
Healthcare’s AI moment is here, and most of its potential has hardly been touched.
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10 Strategies to Expedite Provider Credentialing
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Measuring Real ROI From Ambient AI
In a groundbreaking report, Abridge shares a new methodology for measuring the ROI impact of ambient AI at a more granular level than ever before. Abridge partners are now getting a precise look at changes in wRVUs, HCC capture, time spent in notes, and much more. Four health systems also share their results across many of these metrics. To learn more about the technology behind this breakthrough and to see some of the data, download the report here.
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- DocGo Acquires SteadyMD: DocGo is expanding its telehealth services nationwide by acquiring SteadyMD for $12.5M upfront and another $12.5M in incentives. SteadyMD’s virtual care platform is backed by a roster of 600+ clinicians and is on track to serve over 3M patients in 2025, setting it up for ~$25M in full-year revenue. That should pair nicely with DocGo’s last mile care delivery capabilities, although the publicly traded company has been looking for any buoy to help it stay afloat after losing a nine-figure contract with New York City and seeing its market cap plummet 90% since its SPAC debut in 2020.
- Optum Pulls Out of U.K.: Optum is reportedly offloading its U.K. business, with private equity firm Blackstone emerging as the most likely suitor. The most eyecatching asset of Optum U.K. is the EHR it acquired in 2023 for about $1.5B. Sky News got the scoop on the motive behind the decision: UnitedHealth Group investors have been seeing uncharacteristically rough returns (or lack thereof), and they’re looking to recoup the funds.
- Patient Experience Tops C-Suite Priorities: A health system executive survey from Sage Growth Partners showed that patient experience has been on a steady climb up the C-suite agenda. Half of execs now rank patient experience as their system’s top strategic initiative, up from just 36% in 2023. AI has reached a tipping point where it can actually move the needle on PX, and 81% of orgs think it’s ready to make a meaningful impact. Honorable mentions in execs’ top five digital health priorities include telehealth platforms (50%) and RPM programs (47%).
- Redox Engine Enhancements: Redox followed up its data exchange partnership with Kno2 by announcing major upgrades to its core Redox Engine integration platform. Redox Engine now includes a range of data enrichment and orchestration capabilities, allowing users to create interoperability workflows tailored to their needs. The new enrichment layer dynamically improves information as it moves across systems, while the orchestration enhancements empower IT teams to design their own workflows with conditional routing instead of waiting around for in-house dev resources.
- Sage Care Launch: Sage Care emerged from stealth armed with $20M to fuel the expansion of its AI-powered care navigation system. The Sage platform has apparently helped health systems achieve a 15-20% revenue increase through optimized care coordination, matching patients to the right providers based on clinical context and operational needs. The levers it pulls include call triage, scheduling, and provider search.
- Virtual Therapy for College Students: A new study provided the first large-scale evidence that virtual therapy can reliably help college students with anxiety and depression, regardless of demographic factors. The analysis of 7k+ students (270 U.S. colleges) who participated in virtual therapy with TimelyCare from 2023 to 2025 found that 76% saw significant improvement in their mental health symptoms after three or more sessions. Black students were notably 23-29% more likely to improve than white peers, challenging “long-held assumptions about equity in access and outcomes.”
- Laudio Performance Insights: Laudio launched Performance Insights to give frontline managers the time and visibility they need to better support their teams and improve care quality. The AI-driven insights turn daily performance patterns into real-time coaching and mentorship, which seems like a natural improvement given that Laudio was just acquired by a company that offers workforce coaching and mentorship, Ascend Learning.
- MSK + ALIGNMT: Memorial Sloan Kettering is leveraging ALIGNMT AI’s governance platform to support the operationalization of its responsible oncology AI processes. ALIGNMT monitors and flags risky AI behavior to help healthcare orgs keep compliant with shifting regulations, an area that CEO Andreea Bodnari knows well after spearheading medical AI development for Google and UnitedHealth. The partnership arrives in the wake of ALIGNMT landing $6.5M of seed funding.
- Nudges Boost Lung Screening: A digital outreach program that scanned the EHR for patients that were eligible for lung cancer screenings then allowed them to book their own appointments significantly boosted screening rates. A new paper in JAMA tested the mPATH-Lung program on 1.3k patients, finding that the initiative – which also showed patients short videos about lung screening – lifted screening completion from 17% to 25%. That said, the mPATH-Lung patients also had higher false-positive rates (13% vs. 8.4%).
- Arya With an A: Arya Health closed $18.2M of Series A funding to tackle one of healthcare’s most costly challenges: the administrative burden in post-acute care. Administrative costs make up almost 25% of U.S. healthcare spending, and Arya’s AI agents automate the operational work driving them up. Core use cases currently include non-clinical admin work such as scheduling, compliance, and onboarding.
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- Under the Hood of Navina’s AI: Navina’s AI engine harnesses over 600 proprietary algorithms to transform fragmented patient data into actionable clinical intelligence at the point of care. It’s shaped with the expertise of physicians to turn multiple data sources (EHR, HIE, claims, care gap files, etc.) into contextualized insights like suspected conditions or evidence for care gap closures – each linked back to the original source. Download the whitepaper to see examples of Navina’s AI in action.
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