Bia Health Secures $2.15 Million to Target Low-Value Medical Care

Québec City-based healthtech startup Bia Health has raised $2.15 million CAD to scale its AI-driven diagnostic tool, as first reported by BetaKit. The funding consists of $1.4 million in debt provided by Montréal-based Finalta Capital, with an equity portion led by Anges Québec and participation from Desjardins via its Startup en résidence program.

The company's product, the Bia Assistant, is designed to help clinicians determine diagnostic plans by utilizing a library of scientific and medical knowledge. According to Bia Health CEO and co-founder Anne-Sophie Paquet, the tool is intended to provide evidence-based recommendations rather than replacing clinical judgment. The goal is to decrease "low-value care," which Paquet told BetaKit represents roughly 30 percent of Canadian healthcare. By helping providers avoid unnecessary investigations, referrals, or imaging, the company believes it can improve efficiency and patient outcomes.

Bia Health is not a new venture; Paquet noted the company was co-founded in 2016 by healthcare professionals to provide medical content and e-learning modules. The enterprise currently generates $500,000 in annual recurring revenue. Paquet explained that the shift toward an AI assistant occurred after the founders realized the primary challenge for clinicians was not accessing evidence, but applying that evidence during point-of-care decisions.

To test the technology, Bia Health signed an agreement with Santé Québec to launch a pilot in the Capitale-Nationale – Universitaire region. This six-month pilot will involve 100 clinicians specializing in musculoskeletal care, including the treatment of bone fractures and osteoarthritis. The company is using this specific category to establish a market foothold before expanding its diagnostic capabilities. Bia Health claims that widespread adoption of its technology within primary care could save the province of Québec as much as $100 million annually.

While the company is focusing on its home province, it intends to enter the United States market. BetaKit highlighted a study from the Journal of the American College of Radiology indicating that unnecessary medical imaging costs the U.S. healthcare system approximately $12 billion USD (roughly $17 billion CAD) each year, while simultaneously increasing pressure on the medical workforce.