Top health systems help balloon Rad AI’s fundraising round to $68M

Four top U.S. health systems have helped balloon imaging artificial intelligence vendor Rad AI’s Series C funding round to $68 million. 

Advocate Health, Memorial Hermann, Corewell Health, and Atlantic Health System are together contributing $8 million in “strategic” investments with the San Francisco-based company. This partnership aims to bring “critical insights” from these health systems as Rad AI seeks to “accelerate the next wave of AI-driven innovation.” 

Co-founded by Jeff Chang, MD, MBA, the “youngest U.S. radiologist in history,” in 2018, Rad AI is one of the fastest growing tech companies in America, according to Deloitte. It achieved revenue growth of 8,710% between 2020 and 2023 and is worth $525 million, Pitchbook estimates. 

"The impact of AI in healthcare is no longer theoretical—it's happening right now at scale," Doktor Gurson, co-founder and CEO of Rad AI, said in a statement May 20. "It's an honor to collaborate with these leading health systems to expand that impact even further, building solutions that improve care for millions of patients."

Altogether, the four health systems operate over 100 hospitals serving millions of patients throughout the U.S. Together they’re working to enable “systemwide adoption” of radiology AI, “accelerating progress in areas where health systems face the greatest clinical and operational pressure.” Rad AI estimates its solutions—which aid in reporting, generating impressions and ensuring continuity of care—now touch nearly half of all imaging volumes in the U.S. 

Rad AI previously announced the close of its Series C financing round in January, adding $60 million, with Boston private equity firm Transformation Capital the top contributor.