Rainfall Health, an AI-driven compliance and reimbursement platform for hospitals and medical groups, announced it has closed a $15 million Series A funding round to support health systems impacted by the Transforming Episode Accountability Model, which launched on January 1, 2026. The Series A round was led by Two Bear Capital, with participation from additional investors.
The new CMS mandate incentivizes hospitals and health systems to deliver quality outcomes tied to five of the highest-spend surgical procedures: lower extremity joint replacement, spinal fusion, coronary artery bypass graft, major bowel procedures, and hip and femur fracture treatment. By meeting the required quality metrics, hospitals can increase revenue from existing service lines by up to 20%, potentially yielding more than $100 million in new revenue per health system.
Rainfall Health said the funding will be used to expand its AI teams and build a world-class customer support organization to assist the 742 TEAM-mandated health systems navigating the new value-based reimbursement landscape. The company positions its platform as a single blueprint for compliance in the evolving reimbursement environment, helping hospitals automate regulatory requirements, improve care-quality performance, and unlock new Medicare revenue streams.
Rainfall Health said its platform is already in place across several affected medical groups and hospitals. The company aims to establish what it describes as the country’s first recognized standard for outcome-based care through its RAIN Compliant designation, an AI-enabled framework designed for hospitals, payers, and clinical partners subject to TEAM requirements.
The company said it remains committed to using AI to expand access to quality medical care across geographic regions, as outcome-based reimbursement models such as TEAM accelerate industry adoption of value-based care in 2026 and beyond.
KEY QUOTES
“Hospitals have a tremendous opportunity to increase their revenues by delivering high-quality post-acute care that includes consistent check-ins, clear patient instructions, and clinician follow-ups. By building out our AI and implementation teams, we will ensure our partners take advantage of this opportunity with CMS while delivering a consistent patient experience. This funding is a vital step for Rainfall as we continue to build the country’s first recognized standard for outcome-based care.”
Eddie Qureshi, CEO And Founder, Rainfall Health
“Building an AI platform for hospitals and health systems to more effectively collect, standardize, and report on patient outcomes will forever change the way they track reimbursement. It will create unique new value for patients, providers, and an amazing portfolio business for Two Bear Capital. We’re excited to see Rainfall grow as its platform is deployed across the growing list of US hospitals that will need to deliver on the in-depth infrastructure requirements mandated by TEAM.”
Mark Adams, PhD, Partner, Two Bear Capital
“Rainfall is enabling providers across the country to connect with patients and deliver on their goals at a scale in which the industry hasn’t seen before. Eddie and his team’s commitment to moving the value-based care needle and supporting hospitals in aligning financial incentives with quality patient outcomes is refreshing to see. This funding round will allow Rainfall to accelerate their implementations as TEAM requirements begin to take hold this year.”
David Shulkin, M.D., Ninth Secretary Of The US Department Of Veterans Affairs And Chair Of The RAIN Advisory Committee
