Epsilon Health Raises $27.6 Million to Solve America’s Growing Radiologist Shortage

In just under 10 months, Epsilon’s AI-native radiology practice is already on track to interpret 1% of all daily U.S. X-rays

SAN FRANCISCO--(BUSINESS WIRE)--Epsilon Health (“Epsilon”), the AI-native radiology practice reinventing how radiology is delivered, today emerged from stealth with $27.6 million in funding led by AlleyCorp, with participation from Uncork Capital, Renegade Partners, SemperVirens, and Jack Altman, who invested while serving as Managing Partner at Alt Capital. Epsilon is tackling one of the most urgent crises in American healthcare.

Medical imaging is a foundational pillar of the U.S. healthcare system, with an estimated 75% of all medical decisions relying on radiology to diagnose and treat disease safely and rapidly. But as the U.S. continues to face a critical shortage of radiologists and demand for medical imaging surges, growing bottlenecks are delaying treatment when timely patient care matters most. Epsilon is addressing this challenge with a new model for delivering radiology that enables physicians to keep pace with growing demand without sacrificing the timely, high-quality diagnostic care that underpins an effective healthcare system.

Unlike existing AI radiology companies that build AI models for a single disease or imaging modality, Epsilon took a fundamentally different approach: it became the radiology practice itself. Its purpose-built AI integrates directly into the work of board-certified radiologists, dramatically accelerating clinical workflows while preserving how providers already deliver care, creating a growing proprietary dataset of real-world clinical cases and a continuous feedback loop to iterate its models in real time. By expanding radiologist capacity, Epsilon enables physicians to deliver faster, more consistent diagnoses at scale – demonstrating a new model for how AI can address healthcare’s most pressing workforce challenges while improving patient outcomes.

“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,” said Rustin Rassoli, founder and CEO of Epsilon Health. “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.”

Epsilon is already demonstrating significant caseload scalability and clinical adoption. To date, the company has served more than a quarter-million patients, processes more than 2,500 imaging studies each day, and is on track to review 1% of all daily U.S. X-rays in 2026. Epsilon already handles more than half of the imaging volume for one of the nation’s largest outpatient imaging providers.

Epsilon’s leadership combines frontier AI research with deep clinical expertise. The company’s Head of Machine Learning previously led research at Google DeepMind, while its Chief Medical Officer formerly served as Chief Medical Officer and Chief of Strategy at Envision Radiology, the nation’s second-largest radiology group, with more than 500 radiologists.

“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,” said Dr. Alexi Nazem, MD, General Partner at AlleyCorp. “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.”

“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,” said Jack Altman, who previously invested through Alt Capital. “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.”

The new funding will accelerate Epsilon’s market expansion and support its growing practice through hiring, expanded clinical partnerships, and new infrastructure investments, advancing Epsilon’s mission to ensure every patient has access to timely, high-quality diagnostic expertise, powered by AI and physicians working together.

About Epsilon Health

Epsilon Health is an AI-native radiology practice combining artificial intelligence with physician oversight to deliver faster, higher-quality medical interpretation. Built to integrate seamlessly into existing healthcare workflows, Epsilon Health is on track to interpret 1% of all daily U.S. X-rays in 2026. For more information, visit https://epsilon.health.