Digital Health and Informatics | February Round-Up 2025

March 6, 2025
Newsletter Update
Clinical Diagnostics

Highlights & Summary  

February brought new updates in digital health and informatics! Read more here:

Disease Management / Digital Therapeutics

The disease management and digital therapeutics space continues to evolve with solutions addressing chronic disease management, emergency response, and autism care.

Zest Health has secured $13 million to expand its virtual dermatology platform, leveraging patient data and high-touch care to reduce reliance on biologics and improve clinical outcomes. Meanwhile, Google’s Pixel Watch 3 has received FDA clearance for its Loss of Pulse Detection feature, which can detect cardiac arrest and automatically call emergency services. Autism care company Frontera Health raised $32 million to advance AI-powered digital phenotyping, aiming to streamline diagnostics and therapy through technology-driven solutions integrated with clinician expertise.

Informatics / Healthcare IT Solutions

The informatics and healthcare IT sector saw organizations leveraging AI and digital solutions to streamline operations and reduce inefficiencies.

Candid Health secured $52.5 million in Series C funding to expand its AI-driven medical billing platform. Mass General Brigham is undergoing a strategic reorganization, investing in AI, digital pathology, and network infrastructure to improve workflow efficiency and frontline support.

Women’s Health / Femtech

Digital health is advancing women’s health through cancer research, maternity care, and personalized monitoring. 

Google’s partnership with the Institute of Women’s Cancers will use AI to improve cancer detection, treatment, and education. Millie raised $12M to expand its tech-enabled maternity care model, integrating digital tools and in-person support to improve outcomes. Epicore Biosystems secured $26M to scale sweat-sensing wearables for hydration and biomarker monitoring, benefiting vulnerable populations, including expecting mothers. 

Overarching Industry Updates

1 |  Healthy Technology Act of 2025 establishes that AI or machine learning technology may be eligible to prescribe drugs 

2 | General Catalyst launches EU AI Champions Initiative to unlock Europe’s AI potential

Disease Management / Digital Therapeutics 

1 | Zest Health announces $13M in funding to curb unnecessary pharmaceutical spend through high-touch care

2 | Loss of pulse detection has received FDA clearance and is available on Pixel Watch 3

3 | Autism startup Frontera Health raises $32M

Informatics / Healthcare IT Solutions 

1 | Six months after raising $29M, Candid Health nabs another $52.5M to ease medical billing

2 | Mass General Brigham to lay off hundreds of non-clinical staff and invest in digital solutions

Women’s Health / Femtech 

1 | Google announces new partnership to advance the treatment of women's cancer

2 | Millie secures $12M Series A to continue closing gaps in maternal healthcare

3 | Epicore Biosystems raises $26M Series B to scale sweat-sensing wearables 

 

Overarching Industry Updates

1 | Healthy Technology Act of 2025 establishes that AI or machine learning technology may be eligible to prescribe drugs 

A proposed U.S. House bill, H.R.238, seeks to allow AI and machine learning technologies to autonomously prescribe FDA-approved drugs. The legislation would classify AI as a licensed practitioner if authorized by state law and approved under relevant FDA regulations. If enacted, the "Healthy Technology Act of 2025" would enable AI-driven prescribing within established regulatory frameworks, potentially transforming healthcare delivery. The bill has been referred to the Committee on Energy and Commerce for further consideration.

2 | General Catalyst launches EU AI Champions Initiative to unlock Europe’s AI potential

The EU AI Champions Initiative brings together over 60 European companies with the goal of positioning Europe as a global leader in AI development and application. Announced at the AI Action Summit in Paris, the initiative aims to accelerate AI adoption, enhance industry competitiveness, and integrate AI into key sectors such as healthcare, manufacturing, energy, and defense. Led by General Catalyst, it emphasizes collaboration between established companies and startups while advocating for regulatory simplifications, infrastructure investments, and AI skills development. 

Disease Management / Digital Therapeutics 

1 | Zest Health announces $13M in funding to curb unnecessary pharmaceutical spend through high-touch care

Zest Health, a value-based virtual care company focused on inflammatory skin diseases, has secured $13 million in seed funding to expand its digital dermatology platform. By leveraging patient data and a high-touch virtual model, Zest personalizes treatment plans, reducing reliance on costly biologics while improving clinical outcomes. Their approach has demonstrated significant cost savings and patient satisfaction, with over 80% of users seeing disease improvement and 90% preferring Zest to traditional dermatology care. Backed by Roivant Health, Zest aims to scale its partnerships with health plans and employers, using technology to modernize dermatology and lower pharmaceutical spending.

2 | Loss of pulse detection has received FDA clearance and is available on Pixel Watch 3

Google has received FDA clearance for its Loss of Pulse Detection feature, debuting on the Pixel Watch 3, which can detect cardiac arrest and automatically call emergency services if the user is unresponsive. Initially launched in the EU in 2024, the feature will roll out in the U.S. by the end of March, expanding to 14 countries. This update builds on Pixel Watch’s existing health and safety tools, including car crash detection, fall detection, and ECG monitoring, enhancing its role in emergency response.

3 | Autism startup Frontera Health raises $32M

Frontera Health, an AI-powered autism services startup, has raised $32 million in seed funding to advance its digital phenotyping technology, which helps reduce administrative burdens and enhance therapy sessions. Combining technology with direct care, Frontera plans to commercialize its diagnostic and assessment tools while launching its first Innovation Center in Denver, offering virtual diagnostics, in-home, and center-based therapy. The company aims to integrate digital tools with clinician expertise to improve autism care.

Informatics / Healthcare IT Solutions 

1 | Six months after raising $29M, Candid Health nabs another $52.5M to ease medical billing

Candid Health, a medical billing automation startup, has raised $52.5 million in Series C funding to expand its AI-driven claims processing platform. The company aims to eliminate manual billing inefficiencies by ensuring claims are submitted correctly the first time, reducing denials and delays. With 250% revenue growth in 2024, Candid has gained traction among telehealth providers and large physician groups by leveraging advanced data analytics and machine learning. As it scales, the company plans to enhance its AI capabilities to proactively correct claims before submission, minimizing the need for insurer follow-ups.

2 | Mass General Brigham to lay off hundreds of non-clinical staff and invest in digital solutions

Mass General Brigham is implementing a strategic reorganization, including layoffs of non-clinical staff, to address a $250 million financial shortfall and improve operational efficiency. The health system plans to accelerate digital investments, such as AI-driven administrative automation, digital pathology, and improved network infrastructure, to streamline workflows and support frontline staff. Leadership emphasizes that these changes will enhance decision-making, reduce inefficiencies, and ensure continued investment in patient care, research, and innovation. This announcement illustrates the increasing use of technology for operational improvement to ease financial pressure and ensure long-term stability.

Women’s Health / Femtech 

1 | Google announces new partnership to advance the treatment of women's cancer

Google is partnering with the Institute of Women’s Cancers to explore how AI can enhance cancer research, particularly for difficult-to-treat cases like triple-negative breast cancer. The collaboration will focus on using AI tools to predict cancer progression, identify biomarkers for personalized treatments, and improve overall patient outcomes. Additionally, Google will provide AI training for researchers and clinicians while supporting public health education through YouTube to combat misinformation and promote cancer screening. The partnership also includes over $2 million in funding for Université PSL to advance AI-driven breast cancer research and foster scientific collaboration.

2 | Millie secures $12M Series A to continue closing gaps in maternal healthcare

Millie, a tech-enabled maternity clinic, raised $12M in Series A funding to expand its technology and care offerings. The company aims to address gaps in maternity care with a patient-centered model integrating digital tools, remote monitoring, and in-person support, including postpartum and mental health services. Millie’s approach has demonstrated improved maternal outcomes, (e.g., lowering C-section and preterm birth rates), and is covered by major insurance providers. Millie aims to revamp maternity care by making high-quality, accessible, and continuous support the standard.

3 | Epicore Biosystems raises $26M Series B to scale sweat-sensing wearables 

Epicore Biosystems raised $26M in Series B funding to expand its sweat-sensing wearable technology, including applications in women's health, kidney health, and environmental toxin exposure. The company’s non-invasive hydration and biomarker monitoring solutions address critical health risks, such as heat exposure and malnutrition, which are particularly relevant for vulnerable populations, including expecting mothers. By integrating real-time biochemical analysis with digital health insights, Epicore aims to improve personalized health management and prevent heat-related injuries. This investment will accelerate global adoption and the development of new biomarkers, further advancing digital health solutions for at-risk groups.

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