Abridge, a startup that uses AI to take notes for doctors has raised $300 million in a Series E funding round, which valued it at $5.3 billion.
In February, Abridge raised $250 million at a valuation of $2.75 billion. This funding round was led by Andreessen Horowitz with participation from Khosla Ventures. Co-founder and Chief Executive Dr. Shiv Rao says the new capital from the funding round would go to hiring scientists, machine-learning experts and software developers who will focus on developing new products and building advanced AI infrastructure to support large customers.
There has been a rise in popularity of ambient-listening tech, which tunes into the exchanges between doctor and patient and then transcribes the conversations, allowing doctors to focus on their patients without needing to write notes after hours. This technology has been credited with reducing overwork and burnout among doctors. Abridge states its technology is now being used in over 150 large health systems nationwide, expanding from just a handful a few years ago when the Pittsburgh- and San Francisco-based startup was still piloting its technology with a few hospitals.
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“Every medical conversation is rich with the signals our healthcare system depends on. Abridge activates those signals in the background, silently handling the complexity so clinicians can focus on the human moments that matter. We reduce the burden, restore time, and help make care about the people at the heart of it all,” Rao said.
Abridge states that a significant portion of the $1.5 trillion the U.S. healthcare system spends on administrative costs is tied to clinical documentation and corresponding revenue cycle workflows. The complexity regarding this often creates clinician burnout, delays reimbursement, and adds unnecessary administrative overhead. This startup aims to solve this problem. With the additional funding provided by the latest round, Abridge plans to scale the platform to embed revenue cycle intelligence earlier in the clinical conversation, and eliminate the need for manual, delayed coordination between clinicians and billing teams.
Matt Kull, chief information and digital strategy officer of Inova Health System, said the Northern Virginia-based health system is expanding the use of Abridge’s product from its 2,000 doctors to include its 6,000 nurses. Soon, nurses will be able to walk through in-patient suites and check vitals while talking to an Abridge-connected device, Kull said.
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While Abridge’s technology was launched in 2018, Rao said it has since become more sophisticated alongside the advanced AI models that power it, recognizing hard-to-pronounce medical terms and generating notes relevant to each specialty. The company also has expanded the AI’s ability to access a patient’s prior records and notes so it can prepare its own records according to the doctor’s preferences. As part of its fundraise, Abridge is also embedding the checking and validating of medical billing codes during patient conversations, making documentation more compliant and simplifying processes like coding, billing and auditing.
Abridge’s competitors include Nuance–which has been acquired by Microsoft–as well as Ambience Healthcare, Suki AI, Onpoint Healthcare Partners and Nabla. With AI-based listening systems, there have been concerns about patient privacy and data security. Kull, of Inova Health System, said one of the health system’s primary concerns is the responsible use of AI in its areas of practice.
“We look at this as assistive, not autonomous,” he said. “We want artificial intelligence to provide prompting, to provide automated keystrokes, but we leave the true clinical decision-making to our physicians.”