The AlleyCorp-backed startup is combining artificial intelligence with physician oversight to address radiologist shortages, already processing more than 2,500 imaging studies per day.
Epsilon Health has raised $27.6 million in funding led by AlleyCorp to expand its AI-native radiology practice, a model designed to integrate artificial intelligence directly into medical imaging interpretation.
Uncork Capital, Renegade Partners, SemperVirens and Jack Altman also participated in the financing, announced September 10, 2026.
Founded in 2024 and based in San Francisco, Epsilon is taking a different approach from medical AI companies that primarily sell software to hospitals and radiology groups.
Rather than licensing an AI tool to existing providers, Epsilon operates the radiology practice itself, combining machine learning systems with licensed physicians responsible for interpreting medical images.
An AI Company That Operates the Practice
Most radiology AI businesses develop software to identify abnormalities, prioritize urgent studies or assist physicians with reporting.
Epsilon is building those capabilities directly into its clinical operations.
Its platform integrates artificial intelligence into workflows used by radiologists, with the aim of reducing administrative work, accelerating interpretations and improving consistency.
The practice retains human physician oversight rather than positioning AI as an autonomous replacement for radiologists.
That operational structure matters because deploying AI in healthcare requires more than model performance.
Medical providers must also manage clinical liability, physician licensing, patient relationships, reimbursement and integration with healthcare systems.
By operating the practice, Epsilon takes responsibility for those operational challenges instead of leaving them entirely to software customers.
More Than 2,500 Studies Per Day
Despite its relatively recent launch, Epsilon has disclosed meaningful operational traction.
According to its September funding announcement, the company had served more than 250,000 patients and was processing over 2,500 imaging studies daily.
It also reported handling more than half of the imaging volume for one of the largest outpatient imaging providers in the United States.
The company said it was on track to interpret approximately 1% of daily US X-rays in 2026.
These figures are company-reported operating metrics rather than independently audited clinical performance results.
Epsilon has not publicly disclosed its revenue, profitability, reimbursement rates or independently validated diagnostic accuracy.
Built by Healthcare and AI Specialists
Epsilon was founded by Rustin Rassoli, who previously worked as a founder in residence at Atomic.
Rassoli grew up around his father's medical imaging practice and has described seeing the consequences of delayed or missed diagnoses.
The company's chief medical officer, Dr. Roi Bittane, previously held senior clinical and strategic leadership roles at Envision Radiology.
Its machine learning team is led by Arjun Karpur, a former researcher at Google DeepMind.
The combination reflects Epsilon's ambition to operate as both a healthcare provider and an AI technology company.
The Economics of AI-Native Healthcare
Radiology represents one of the clearest opportunities for applying AI to specialized medical workflows.
But the commercial challenge is not simply producing accurate model predictions.
A successful practice must also recruit physicians, maintain clinical quality, comply with healthcare regulations and deliver interpretations at a sustainable cost.
Epsilon's integrated model could allow improvements in AI-assisted productivity to directly affect its operating economics.
However, greater throughput alone does not establish better financial margins or superior patient outcomes.
The $27.6 million investment will support hiring, clinical partnerships, infrastructure and further market expansion.
Epsilon's next challenge is demonstrating that its combination of AI and physician oversight can improve radiology economics while maintaining the clinical reliability required of a medical practice.
Sources: Epsilon announcement · Leadership · Uncork Capital