A Québec City-based healthtech startup has raised $2.15 million CAD to expand the reach of an artificial intelligence tool designed to help clinicians decide whether patients actually need medical imaging or other interventions.
Bia Health announced the funding on Wednesday, saying it will use the capital to bring its Bia Assistant to more healthcare providers to support decisions around diagnostic plans. Montréal-based Finalta Capital provided $1.4 million of the raise in debt, while Anges Québec led the equity portion of the round. Desjardins also participated through its Startup en résidence program.
From E-Learning to Point-of-Care AI
Bia Health CEO and co-founder Anne-Sophie Paquet, a physiotherapist, co-founded the company in 2016 alongside other healthcare professionals. The business originally focused on making clinical knowledge more accessible through e-learning modules and a library of medical content. Over time, Paquet said the team concluded that the larger challenge wasn’t access to evidence itself but helping clinicians apply that evidence directly at the point of care.
Paquet told BetaKit the company is not starting from scratch, noting it already generates $500,000 in annual recurring revenue and is now looking to scale a new product with the fresh funding.
The Bia Assistant draws on a library of medical and scientific knowledge to help healthcare professionals reach diagnoses. According to the company, the goal is to reduce tests and interventions that don’t align with evidence-based guidelines for a patient’s symptoms or that aren’t likely to improve outcomes. Bia Health has said the tool is intended to support, not replace, clinical judgment by offering evidence-based recommendations.
Targeting Unnecessary Care Costs
Paquet said an estimated 30 percent of healthcare in Canada represents unnecessary or low-value care, which the Bia Assistant is meant to help address by guiding clinicians toward more appropriate decisions — including avoiding unnecessary imaging, referrals, investigations, or interventions, and supporting appropriate self-care when escalation isn’t needed.
The company has said that widespread adoption of its technology across primary care in Québec could help the province save up to $100 million a year on healthcare spending. Bia Health has signed an agreement with Santé Québec in the Capitale-Nationale – Universitaire region to run a six-month test of its technology involving 100 clinicians focused on musculoskeletal care, covering conditions such as osteoarthritis and bone fractures. Paquet said the company chose to start with this category to build a strong foothold before expanding into other areas of diagnostic assistance.
Eyes on the US Market
While Bia Health is beginning in its home province, the company has said it plans to eventually target the larger US market. A study published in the Journal of the American College of Radiology found that unnecessary medical imaging costs the US medical system about $12 billion USD, or roughly $17 billion CAD, each year. Beyond the direct cost burden, unnecessary diagnostic testing has also been linked to added pressure on an already strained healthcare workforce.
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