Epsilon Health raises $27.6M to run an AI radiology practice

Why it matters

Epsilon is testing a consequential healthcare AI model: owning the medical practice that uses the software rather than licensing a standalone tool.

Rustin Rassoli brought Epsilon Health out of stealth on September 10 with $27.6 million and a model that puts the San Francisco company directly inside the delivery of medical care: Epsilon Health operates an AI-assisted radiology practice rather than licensing another imaging tool to hospitals.

AlleyCorp led the financing, with Uncork Capital, Renegade Partners, SemperVirens and Jack Altman participating. Epsilon Health did not attach a stage label or valuation to the round in its announcement through Business Wire.

Rassoli's route into radiology started well before the latest AI cycle. His father opened an imaging center nearly 20 years ago, exposing Rassoli to backlogs, delayed answers and the consequences of missed diagnoses. "Growing up around my dad's imaging practice, I saw firsthand the profound impact of misdiagnosis," Rassoli said in the announcement.

Rassoli studied mathematics and computer science at the University of Texas at Austin and later worked in business operations at startup studio Atomic, where he became a founding general manager for a stealth venture. His earlier projects included a mobile greeting-card business, a home medical-testing startup and a college-consulting service. That history reads less like a conventional clinical founder's resume and more like a serial operator moving toward the problem he grew up watching.

Owning the clinical workflow

Epsilon Health's central decision is structural. Rassoli has chosen to operate the radiology service, employ technology inside the reading workflow and build its models from the resulting clinical feedback. Board-certified radiologists remain responsible for interpretations, according to Epsilon Health, while its software handles parts of the workflow intended to increase reading capacity.

A Florida corporate filing for Epsilon Health, P.A. identifies diagnostic radiologist Roi Bittane as president. Bittane is Epsilon Health's chief medical officer and previously held medical and strategy leadership roles at Envision Radiology.

The clinical claims still require evidence beyond Epsilon Health's own reporting. Epsilon Health says its approach improves accuracy, doubles speed and reduces burnout, but it has not published independent clinical results for those claims in the materials accompanying the financing.

The volume claim needs a denominator

Epsilon Health says in its financing announcement it has served more than 250,000 patients and currently processes over 2,500 imaging studies a day. Holding that daily rate for a year would amount to roughly 912,500 studies, although the announcement does not break out X-rays from CT, MRI or other modalities.

Epsilon Health also says it is on track to interpret 1% of all daily U.S. X-rays during 2026 and handles more than half of the imaging volume for one of the country's largest outpatient imaging providers. The provider and the national X-ray denominator behind the 1% projection are not identified, making the market-share claim difficult to benchmark. These figures remain Epsilon Health's own operating metrics rather than independently audited results.

Epsilon Health is entering a market where demand for medical imaging is rising while the radiologist workforce is under pressure, according to the company's financing announcement.

Traditional teleradiology providers such as vRad already combine remote physician coverage with workflow technology. AI vendors including Aidoc and Rad AI sell imaging, reporting and care-coordination software into existing clinical organizations. Epsilon Health is taking the practice-level route, where software and medical operations are developed under the same roof.

Rassoli is not alone in pursuing that structure. Radley, a separate San Francisco company founded in 2026, also describes itself as an AI-native radiology practice. Radley's public materials emphasize recruiting radiologists into a new practice model aimed at the same workforce shortage. The comparison clarifies Epsilon Health's distinction: it is pairing that practice structure with an operating business that is already reporting patient and imaging volume.

AlleyCorp backs another clinical labor bet

AlleyCorp's lead role fits its history in healthcare labor and services. Alexi Nazem, the AlleyCorp general partner quoted in Epsilon Health's announcement, co-founded clinical staffing marketplace Nomad Health and ran it for nine years. Nazem is also a physician and clinical assistant professor at Weill Cornell.

That background gives AlleyCorp a clear view of the trade Epsilon Health is making. Software can increase the output of each radiologist, but Epsilon Health still has to assemble and retain the physicians who deliver the service. The funding will go toward hiring, clinical partnerships, infrastructure and geographic expansion, according to Epsilon Health.

Rassoli has selected an operating model that combines the software company and medical practice. Epsilon Health's progress will depend on whether it can maintain diagnostic quality as volume grows, recruit enough radiologists to meet coverage commitments and prove that its productivity gains survive outside an early anchor account.