Rainfall Health Announces $15M Series A Investment to Support Hospitals Impacted by New CMS Revenue Opportunity

Funding will enable Rainfall Health to enhance AI-enabled solutions for the 742 TEAM-mandated health systems in new value-based reimbursement era

SAN FRANCISCO, Feb. 18, 2026 /PRNewswire/ -- Rainfall Health, an AI-driven compliance and reimbursement platform for hospitals and medical groups, today announced it has closed on a $15 million Series A funding round. The company will lean on this investment to build out its AI teams and build a world-class customer support team, who will support the hospitals impacted by the Transforming Episode Accountability Model (TEAM), which launched on January 1, 2026.

This new CMS mandate incentivizes hospitals and health systems to deliver on quality outcomes associated with the five highest-spend surgical procedures: lower extremity joint replacement, spinal fusion, coronary artery bypass graft, major bowel procedures, and hip/femur fracture treatment. By complying with the quality metrics, hospitals now stand to gain 20% in increased revenue from existing lines of service, yielding more than $100 million in new revenue per Health System.

"Hospitals have a tremendous opportunity to increase their revenues by delivering high-quality post-acute care that includes consistent check-ins, clear patient instructions, and clinician follow-ups," said Eddie Qureshi, CEO and Founder of Rainfall Health. "By building out our AI and implementation teams, we will ensure our partners take advantage of this opportunity with CMS while delivering a consistent patient experience. This funding is a vital step for Rainfall as we continue to build the country's first recognized standard for outcome-based care."

This Series A investment was led by Two Bear Capital, along with support from other notable investors.

"Building an AI platform for hospitals and health systems to more effectively collect, standardize, and report on patient outcomes will forever change the way they track reimbursement," said Mark Adams PhD, Partner at Two Bear Capital. "It will create unique new value for patients, providers, and an amazing portfolio business for Two Bear Capital. We're excited to see Rainfall grow as its platform is deployed across the growing list of US hospitals that will need to deliver on the in-depth infrastructure requirements mandated by TEAM."

Rainfall Health is the only product on the market that acts as a single blueprint for navigating compliance in this new era of reimbursement. Rather than seeing compliance rules as a downside for hospitals, Rainfall Health is driving towards the opportunity that exists for providers across the country to invest further into a new standard of care and access for their patients. The platform, which is already implemented across several impacted medical groups and hospitals, is built on increased healthcare access, hospital workflow efficiency, and regulatory compliance – all with the goal of improving patient outcomes.

"Rainfall is enabling providers across the country to connect with patients and deliver on their goals at a scale in which the industry hasn't seen before," said David Shulkin M.D., the Ninth Secretary of the US Department of Veterans Affairs and Chair of the RAIN Advisory Committee. "Eddie and his team's commitment to moving the value-based care needle and supporting hospitals in aligning financial incentives with quality patient outcomes is refreshing to see. This funding round will allow Rainfall to accelerate their implementations as TEAM requirements begin to take hold this year."

Rainfall Health remains committed to its original mission of using AI to ensure patients in any and all geographic areas have access to quality medical care. The platform will continue to play a key role in doing this across the country, as the outcome-based care model outlined in TEAM will accelerate the industry's adoption of a more value-based approach in 2026 and beyond.

About Rainfall Health:
Rainfall Health is an AI-driven compliance and reimbursement platform that helps hospitals and medical groups navigate new value-based care models such as CMS's TEAM model, ensuring they deliver on vital case management and care delivery goals. The company is shaping a new national standard for mandated care-model compliance through the RAIN Compliant^™ designation — a verifiable, AI-enabled framework adopted by hospitals, payers, and clinical partners impacted by the January 1, 2026 TEAM launch. Rainfall works with health system executives, physician groups, and post-acute partners to automate complex regulatory requirements, improve care-quality performance, and unlock new Medicare revenue streams. Follow Rainfall Health on LinkedIn and Twitter.

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SOURCE Rainfall Health