Layer Health Raises $21 Million Series A to Transform Medical Chart Review Using AI

Layer’s AI platform already deployed and validated with healthcare ecosystem partners, reducing costs and creating net-new value across many clinical use cases

BOSTON, MA, UNITED STATES, March 27, 2025 /EINPresswire.com/ -- Layer Health, a leading health technology company leveraging advanced AI to revolutionize chart review, today announced $21 million in Series A funding. Led by Define Ventures with participation from Flare Capital Partners, GV and MultiCare Capital Partners – which represent some of the most respected artificial intelligence (AI), life sciences, digital health and health system investors – the funding will enable Layer Health to scale its AI-powered platform, grow its team and further its mission to improve healthcare efficiency, reduce costs and enhance patient outcomes.

Layer Health was founded by veteran AI and clinical leaders from prestigious institutions like MIT, Harvard, Microsoft and Google and is tackling one of healthcare’s most persistent challenges: extracting actionable insights from fragmented medical records. Its AI platform leverages advanced large language models (LLMs) trained on longitudinal patient data to enable health systems to automatically review and interpret both structured and unstructured clinical data at scale with clinician-level accuracy. Unlike traditional software solutions, which rely mostly on predefined rules, Layer Health’s AI reasons like a clinician across a patient's whole chart, allowing it to handle extremely nuanced and complex scenarios. By reducing costs and enabling timely interventions, the technology empowers health systems to deliver better, more personalized care and create more revenue opportunities.

Layer Health’s platform will have the ability to drive significant value across the entire continuum of chart review use cases, including:
Quality Reporting & Clinical Registries: Automating the extraction of data for clinical registries and quality measurement programs to improve accuracy and efficiency while ensuring compliance with accreditation bodies.

-- Clinical Research & Real-World Data Abstraction: Accelerating patient cohort identification for research studies, improving real-world evidence generation and reducing the manual workload of chart abstraction for life sciences and research teams.

-- Hospital Operations & Revenue Cycle Management: Enhancing clinical documentation integrity (CDI) and coding processes to optimize reimbursement, reduce denials and improve financial performance.

-- Clinical Decision-Making & Patient Care Optimization: Providing physicians and care teams with real-time, AI-powered insights that synthesize a patient’s full medical history to support personalized, evidence-based treatment decisions.

"Medical chart review has historically been a costly and time-consuming challenge for health systems, yet scaling it is key to decreasing much of the friction in healthcare. That’s why we’re committed to revolutionizing this process and to building technology that providers trust, empowering them to enhance care quality, drive financial growth and identify new revenue opportunities," said David Sontag, Ph.D., CEO and Co-Founder of Layer Health and an MIT professor. "We are thrilled to partner with these stellar investors who deeply understand healthcare, our long-term vision and our technology's transformative power. By reducing administrative burdens and streamlining inefficiencies, we allow providers to focus on their ultimate priority – delivering exceptional patient care."

The exhaustive, largely manual process of chart review demands substantial clinician time and resources. Teams of trained professionals, often nurses, dedicate thousands of hours each year to analyzing health records like notes and lab results—a costly process prone to human error. This inefficiency drains millions of dollars from health systems annually, inhibits clinicians from operating at the top of their license and potentially comprises clinical outcomes. Additionally, manual chart reviews can result in inaccuracies in reporting to clinical registries, amplifying compliance risks and limiting providers’ ability to benchmark performance and enhance care quality.

Layer Health’s AI solves these issues and is already delivering significant returns for its early ecosystem partners, including:

-- Health systems: Layer Health’s technology streamlined quality data abstraction for the Froedtert & the Medical College of Wisconsin health network, reducing the time required by more than 65%. This efficiency allowed staff to redirect their efforts toward higher-value tasks, enhancing both operational productivity and care delivery.

-- Life science and clinical research partners: Layer Health’s technology can perform real-world data (RWD) abstraction to support clinical research for life science companies and other research partners. For example, in collaboration with a leading cancer organization, Layer Health completed RWD extraction with exceptional accuracy for dozens of new patients in a few hours—a process that previously took longer than a year.

"AI-driven chart review enables us to rethink how we harness patient data to support quality improvement efforts,” said Dr. Sid Singh, Chief Quality Officer for the Froedtert & the Medical College of Wisconsin health network. "Layer Health's technology has already delivered measurable efficiencies, but its true potential lies in what comes next - scaling the depth, scope and timeliness of our quality measures and registry participation, enabling personalized care pathways for patients and improving our financial sustainability as a system. As we look ahead, we see AI transforming not just chart review, but the way we deliver care and improve patient outcomes at scale."

“David and the Layer Health team bring an unparalleled combination of deep technical expertise and a bold vision for transforming how healthcare organizations interact with clinical data,” said Lynne Chou O’Keefe, Founder and Managing Partner at Define Ventures. “Their AI-driven approach to clinical inference is tackling one of the most complex and critical challenges in healthcare — extracting meaningful, reliable insights from structured and unstructured data. By focusing on a foundational need for the healthcare system, we’re excited for the Layer platform to enable many large healthcare organizations across the ecosystem. We’re thrilled to support them in this journey to redefine how healthcare organizations harness the power of AI.”

“Layer Health’s AI platform fully unifies clinical data, previously buried across charts, and uncovers powerful revenue-generating clinical and financial insights,” said Parth Desai, Partner at Flare Capital Partners. “This solves a long-elusive challenge in healthcare and has made David and team a foundational, trusted partner to all healthcare organizations deploying AI.”

With this new funding, Layer Health plans to expand its offerings, advance its AI models, and deepen partnerships with health systems and other ecosystem partners across the U.S. and beyond.

About Layer Health
Layer Health is a cutting-edge healthcare AI company that harnesses the power of large language models (LLMs) to transform data abstraction and unlock high-value insights from structured and unstructured EHR data. Founded by AI and clinical leaders from some of the most prestigious academic and healthcare organizations, the company is building a next-generation AI platform to help its partners improve clinical care, streamline operations and financial performance. The company is backed by leading investors, including Define Ventures, GV, Flare Capital Partners, MultiCare and others. For more information, visit www.layerhealth.com.

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Alastair Blake
Layer Health
press@layerhealth.com