Qualified Health, a Palo Alto, CA-based company providing an enterprise AI platform built for health systems, has raised $125 million in a Series B funding round led by New Enterprise Associates, Inc. (NEA).
The round also saw participation from new investors Transformation Capital, GreatPoint Ventures, Cathay Innovation, Menlo Ventures’ Anthology Fund, an AI innovation fund created in partnership with Anthropic, and existing investors SignalFire, Frist Cressey Ventures, Flare Capital Partners, Healthier Capital, Town Hall Ventures, and Intermountain Ventures.
The company intends to use the funds to expand operations and its development efforts.
Qualified Health’s funding highlights the increasing demand from health systems for a platform that can safely deploy and scale AI across the whole organization, not just in isolated pilots.
Early deployments with Qualified Health’s system partners are already showing clear results in increased revenue and cost savings.
At the University of Texas Medical Branch (UTMB), within six months, Qualified Health built a secure data foundation across EHR and non-EHR sources, launched multiple AI assistants and automated workflows, and created over $15 million in measurable impact.
Qualified Health helps health system leaders create a practical AI adoption strategy, solve their most important problems quickly, and build the skills needed for long-term transformation.
Scaling AI is both a technical and organizational challenge. Health systems need to connect data from different sources, integrate AI into daily workflows, ensure strong governance, and support staff through training and change management.
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The platform includes built-in safety and governance, with clinician oversight, full audit trails, clear source attribution and continuous monitoring after deployment.
The Qualified Health platform now supports over 500,000 users across health systems, covering about 7% of U.S. hospital revenue. The new funding will help expand the platform, speed up deployments, and strengthen the governance, monitoring, and infrastructure needed for critical AI in healthcare.
“We’ve earned the trust to take on large, transformative projects, and we’ve built a team and platform to deliver on that responsibility,” said Justin Norden, CEO and co-founder of Qualified Health. “This next phase is about growing partnerships, scaling responsibly, and showing that AI can improve patient outcomes, boost financial health, and ease the burden on clinicians. Health systems aren’t just seeking small improvements—they want to transform care delivery, and we’re proud to be their partner in that work.”
“We are in a generational shift where AI is not just supporting organizations but transforming them from within,” said Mohamad Makhzoumi, Co-CEO of NEA, who will join Qualified Health’s Board with this financing. “From NEA’s decades of experience, the companies shaping the next era of healthcare will be those helping systems rethink every administrative and clinical workflow, and Qualified Health is exactly that. We’re excited to lead this round and partner with Justin and his team to accelerate AI-driven healthcare transformation across the country.”
“Health systems face immense pressure today, from rising labour costs to tighter reimbursements and growing patient care complexity,” said Jared Kesselheim, MD, Managing Partner at Transformation Capital. “Qualified Health stands out because the team approaches solutions as medical care specialists, understanding the real challenges health systems face. This insight allows them to apply AI where it can make a real clinical and operational impact. We’re excited to support Justin, and the team as they help lead health systems navigate this next phase of healthcare.”
“Qualified Health has been an outstanding partner as we develop and implement our AI strategy at UTMB,” said Peter McCaffrey, MD, Chief AI & Digital Officer at the University of Texas Medical Branch. “Their team brings deep expertise and works closely with our clinicians, operators, and leadership. Together, we’ve focused on top priorities, moved quickly from ideas to action, and stayed ahead during this period of rapid change. The results have already exceeded our expectations.”
“This is about making every patient encounter safer, more connected, and more human,” said Byron Yount, Chief Data & AI Officer at Mercy. “AI helps us simplify complex workflows, anticipate patient needs sooner, and give caregivers the time, and clarity to provide better care. Our partnership with Qualified Health speeds up this transformation turning AI into a real path for improved outcomes and a better experience for the people we serve.”
“About a year ago, we held a summit with twenty health system AI and C-suite leaders to discuss how they are using AI,” said Jared Kesselheim, MD, Managing Partner at Transformation Capital. “A common need we heard was for a trusted partner and platform to deploy AI safely, responsibly, and in line with healthcare regulations, without juggling many different solutions. As we got to know the Qualified Health team, we became confident that they are perfectly positioned to be that trusted partner, a belief reinforced by the enthusiasm and strong partnerships of the health systems already working with them.”
“Working with Qualified Health helps us ensure AI is integrated safely and responsibly into our administrative workflows,” said Lisa Nelson, Chief Applications Officer at the University of Rochester Medicine. “Their platform and expertise allow us to pursue a system-wide, centralized AI strategy while maintaining and enhancing our high quality patient experience and health outcomes.”
“What AI can achieve as a continuous platform for health systems is the ideal use case,” said Mohamad Makhzoumi, co-CEO of NEA and lead investor. “At NEA, we focus on a small number of companies we deeply believe in, and we are fully backing Qualified Health as the foundation for transforming health systems. We aim to help build Qualified Health the way Salesforce was built for sales and Workday for HR—this is a category-defining opportunity.”
About Qualified Health
Founded by Justin Norden, Kedar Mate, MD, Shantanu Phatakwala, and Beau Norgeot, PhD, Qualified Health is an enterprise AI platform and strategic partner that helps health systems safely deploy scalable AI to drive measurable clinical and financial results. Its platform combines workflow automation, AI agent development, clinical safeguards, real time monitoring, and full governance with deep healthcare and AI expertise, helping leaders unlock value across their organizations. Built and led by former health system executives, frontline physicians, clinical transformation experts, and Silicon Valley engineers, Qualified Health provides the knowledge and operational discipline needed to deploy, scale, and manage AI responsibly at enterprise scale.
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