AI-enabled radiology performance platform Covera Health secures $50M

Covera Health, an AI-enabled clinical data analysis company focused on improving radiology readings, announced it secured an additional $50 million in Series C funding and finalized its acquisition of CoRead, which uses AI to flag medical errors on radiology examinations. 

The funds add to the company’s $25 million Series C round announced in 2021. 

Insight Partners led the 2021 round and the current $50 million add-on, with $25 million being committed to Covera from the recent round today. 

Former CoRead CEO Lawrence Ngo will join Covera Health as senior vice president of its quality assurance platform.

WHAT THEY DO

New York-based Covera Health uses AI and data analytics to help radiologists improve their accuracy and reduce misdiagnosis. Its data platform, the Radiology Centers of Excellence, is used by health plans and employers to guide patients toward high-quality radiology providers for their specific needs. 

The company also works with payers to avoid unnecessary care and promote value-based payment.

North Carolina-based CoRead is a generative AI-powered quality assurance company focused on improving performance in radiology. 

Covera will integrate CoRead’s offerings into its platform and use the additional Series C funds to scale its payer and provider marketplace.

“We are continually impressed by Covera Health’s dedication to improving quality of care and decreasing costs by applying AI to radiology. They stand out as a company with the potential to revolutionize how healthcare is measured, rewarded, and delivered at scale,” Jeff Horing, managing director and cofounder of Insight Partners, said in a statement. 

MARKET SNAPSHOT 

In 2020, Covera Health announced it scored $23.5 million in Series B funding and, a year before, secured $8.5 million in Series A financing. 

CoRead secured more than $1 million in equity financing in 2021. 

In 2019, Covera announced a strategic collaboration with Walmart to provide eligible Walmart associates and their dependents with assistance in avoiding unnecessary treatment based on inaccurate radiology diagnoses. 

A year later, the company announced a collaboration with Premera Blue Cross, a health plan in the Pacific Northwest, to reduce radiology-focused misdiagnoses. 

Last year, Covera and Microsoft’s Nuance launched a nationwide program dubbed the Quality Care Collaborative that brought together providers, self-insured employers and payors to support radiology-focused quality improvement initiatives at scale.