Epsilon Health has emerged from stealth with $27.6 million in funding to expand its AI-native radiology practice, which is already processing more than 2,500 imaging studies per day and expects to interpret 1% of all daily U.S. X-rays during 2026. The financing was led by AlleyCorp, with participation from Uncork Capital, Renegade Partners, SemperVirens and Jack Altman, who invested while serving as Managing Partner at Alt Capital.
Rather than developing an AI model focused on a single disease or imaging modality, Epsilon built the technology directly into a functioning radiology practice.
Its purpose-built AI works alongside board-certified radiologists, accelerating clinical workflows while preserving existing care processes. The model also produces a growing proprietary dataset of real-world cases and a feedback loop that Epsilon uses to continuously improve its technology.
Epsilon is targeting the growing imbalance between medical imaging demand and the available supply of radiologists. The company cited estimates that 75% of medical decisions rely on radiology, while workforce shortages are creating bottlenecks that can delay diagnoses and treatment.
In less than 10 months, Epsilon has served more than 250,000 patients and grown to more than 2,500 imaging studies per day. The company already handles more than half of the imaging volume for one of the country’s largest outpatient imaging providers.
The company’s leadership combines clinical and AI experience. Its Head of Machine Learning previously led research at Google DeepMind, while its Chief Medical Officer previously served as Chief Medical Officer and Chief of Strategy at Envision Radiology, which the company describes as the country’s second-largest radiology group with more than 500 radiologists.
Epsilon plans to use the new funding to accelerate market expansion, hiring, clinical partnerships and infrastructure investment as it expands its radiology practice.
KEY QUOTES:
“Growing up around my dad’s imaging practice, I saw firsthand the profound impact of misdiagnosis. When a diagnosis is missed or delayed, it can quickly change the course of someone’s life. America’s growing shortage of radiologists is putting real lives at even greater risk – the system is collapsing, and patients are bearing the brunt of it. That’s why we’re building a radically new approach to radiology at Epsilon, where radiologists and technologists work as one team to solve this growing bottleneck and create a world where no diagnosis is missed, delayed, or wrong.”
Rustin Rassoli, Founder and CEO of Epsilon Health
“I’ve sat across from many patients whose path forward hinged on a single image and having a great radiologist to read it. But there simply aren’t enough of them. Epsilon lets that expertise reach far more people, with each reading improving the system for the next. Today’s patient quietly improves care for a million future patients they’ll never meet. As a physician, that’s the kind of AI I want to see in medicine.”
Dr. Alexi Nazem, MD, General Partner at AlleyCorp
“Epsilon has built an entirely new kind of radiology practice, which I think makes a great blueprint for how healthcare will be done in the future. In less than 10 months, they’ve gone from nothing to processing thousands of studies a day for some of the largest imaging providers in the country. I couldn’t be more excited about what they’re doing.”
Jack Altman, who previously invested through Alt Capital
