Heidi Health Secures $65M Series B Funding - Point72 Leads

Heidi Health Secures $65 Million to Alleviate Administrative Burden on Clinicians

Dr. Tom Kelly, a trauma surgeon, observed a pervasive issue within the medical field: physicians overwhelmed by administrative tasks. Recognizing the need for a solution, he embarked on a mission to create one.

“Our goal was to develop an AI-powered care assistant designed to work in collaboration with clinicians, handling administrative duties so that healthcare providers, such as myself, could focus on delivering the patient care we are dedicated to,” he explained to TechCrunch.

Company Founding and Early Growth

Dr. Kelly partnered with Waleed Mussa, a former colleague from a previous venture, and together they established Heidi Health in 2021. The company initiated product launches in early 2024.

Within a span of just 18 months, the company reports having restored over “18 million hours to healthcare professionals through more than 70 million patient interactions across 116 nations.”

The AI Medical Scribe Solution

The core offering of Heidi Health is an AI medical scribe, engineered to manage the administrative workload that often burdens doctors. It facilitates both transcription and dictation of notes.

Furthermore, the system generates individualized patient summaries and maintains task tracking, eliminating the reliance on traditional methods like sticky notes.

Heidi Health employs a flexible approach, developing its own AI models while also integrating with existing ones, such as Gemini. “This adaptability allows us to optimize for accuracy, speed, and cost-effectiveness,” Dr. Kelly stated.

Series B Funding and New AI Agent

On Monday, the company announced a $65 million Series B funding round, spearheaded by Point72 Private Investments, led by Steve Cohen.

Alongside this announcement came the unveiling of a new feature: an AI agent capable of contacting patients on behalf of physicians.

Joining the team are Dr. Simon Kos, formerly the chief medical officer at Microsoft, and Paul Williamson, previously the head of revenue at Plaid.

To date, Heidi Health has raised a total of $96.6 million. Additional investors in this round include Headline, Blackbird VC, Possible Ventures, and Archangel.

Investor Confidence and Future Development

“They had evaluated numerous scribing solutions previously,” Dr. Kelly noted regarding Point72 Private Investments. “However, they had not encountered product adoption and usage statistics comparable to those of Heidi Health.”

He further emphasized the company’s dedication to user experience, contrasting it with competitors who primarily focus on direct sales.

The newly acquired capital will be allocated towards continued product development.

Expanding Clinical Capacity and Global Impact

Dr. Kelly envisions that increased access to AI tools will enhance the capabilities of clinicians and alleviate the more tedious aspects of their profession.

He pointed out that current discussions within the medical community are often centered on developments in industrialized nations. “However, consider a scenario where any healthcare provider globally can utilize Heidi Health to expand their clinical capacity.

This could enable practice in conflict zones, refugee camps, areas affected by climate change, or simply underserved communities,” he elaborated. “Heidi Health can empower them to reach more patients and achieve improved healthcare outcomes.”

The Evolving Landscape of AI in Health Tech

AI is rapidly reshaping the health technology sector. Other companies operating in the medical scribe space include DeepScribe, Ambience Healthcare, and Abridge.

Heidi Health currently serves over 2 million clinicians weekly, encompassing both large hospital systems and individual practices.

The company offers a free version of its product alongside paid features, a strategy Dr. Kelly believes effectively attracts new users.

He acknowledged that AI will inevitably transform healthcare, but underscored the enduring importance of human connection, particularly in fostering trust.

“The ultimate aim is to double the world’s healthcare capacity. That is the genuine potential of AI,” he concluded. “And we are committed to realizing it.”

This article has been updated to reflect the source of the investment as Point72 Private Investments and to clarify the list of investors.