Carenostics raises $5m for AI-powered chronic disease diagnosis

AI platform leverages existing health data to identify undiagnosed and undertreated chronic disease patients.

Healthcare AI company Carenostics has secured $5 million in seed funding to address the challenges of underdiagnosed and undertreated chronic diseases in the United States. The round was led by M13, with participation from Greatpoint Ventures, Gaingels, and Kurt Hilzinger, Chairman of Humana.

Chronic diseases are a major public health concern in the United States, contributing to the leading causes of death and disability. Carenostics claims these diseases account for 90% of the nation’s annual healthcare expenditure, amounting to approximately $4.1 trillion annually. The company says a significant part of this burden arises from undiagnosed patients who receive treatment too late, with some conditions, such as chronic kidney disease, estimated to be undiagnosed in up to 80% of cases.

Carenostics has developed an AI platform that leverages existing electronic health record (EHR) data to identify undiagnosed and undertreated chronic disease patients. The platform integrates seamlessly into clinicians’ workflows, prompting earlier interventions.

“We are setting the stage for a data-driven healthcare revolution, where every diagnostic and treatment decision is personalized using patient data and AI,” said Dr Bharat Rao, Co-Founder and CEO of Carenostics. Rao previously led Healthcare AI for Siemens and KPMG’s US Healthcare & Life Sciences AI & Analytics practice.

With the $5 million in seed funding, Carenostics aims to accelerate its expansion to more health systems and target a broader range of chronic conditions.

“The future of healthcare is proactive, not reactive, and Carenostics’s use of clinical AI holds the transformative power to overhaul our industry by tackling the costly and life-threatening delays in diagnosis and treatment,” said Latif Peracha, General Partner at M13.

Carenostics says has already partnered with health systems, including Hackensack Meridian Health, the largest hospital system in New Jersey. In this collaboration, the platform has identified up to three times more chronic kidney disease patients and up to 20 times more severe and uncontrolled asthma patients while maintaining a lower false-positive rate compared to current care practices. Additionally, Carenostics has integrated AI insights into clinical workflows, achieving activation rates up to five times higher than industry benchmarks.

Beyond health systems, Carenostics has forged strategic partnerships with industry giants like AstraZeneca, the VA, and secured investment from Bayer G4A. These partnerships validate the effectiveness of Carenostics’ AI solutions in improving healthcare outcomes.