Rainfall Health has successfully raised $15 million in a Series A funding round, spearheaded by Two Bear Capital, with participation from several prominent investors. This investment comes at a pivotal time as the company prepares to align its offerings with the upcoming launch of the Centers for Medicare & Medicaid Services (CMS) Transforming Episode Accountability Model (TEAM), set to take effect on January 1, 2026.
The TEAM initiative aims to incentivize hospitals to enhance patient outcomes for five high-cost surgical procedures, presenting an opportunity for healthcare systems to significantly bolster their revenue streams.
Understanding the TEAM Model
Starting January 1, 2026, American hospitals will be subject to new payment structures under the CMS TEAM model. This mandate emphasizes accountability for patient outcomes in five key procedures:
– Lower extremity joint replacement
– Spinal fusion
– Coronary artery bypass graft (CABG)
– Major bowel procedures
– Hip/femur fracture treatment
Under these new regulations, hospitals that successfully meet specific quality metrics—such as ongoing patient follow-ups and clear recovery instructions—stand to gain a revenue increase of up to 20% for these services. For larger health systems, this increase could translate to more than $100 million in additional revenue.
Redefining Compliance
Rainfall Health’s platform serves as a “digital blueprint” designed to navigate this new healthcare landscape. Rather than relying on traditional manual processes, the platform utilizes artificial intelligence to standardize how patient outcomes are collected and reported.
By ensuring that every patient interaction—from discharge to recovery—is meticulously tracked, Rainfall Health helps hospitals comply with CMS requirements efficiently. The platform automates complex regulatory workflows, allowing clinicians to prioritize patient care without the burden of extensive data entry.
The company is also working to establish a national standard known as the RAIN Compliant designation. This framework is intended for hospitals and payers to verify compliance with the evolving demands of value-based care.
Eddie Qureshi, CEO and Founder of Rainfall Health, emphasized the significant potential for hospitals to increase their revenue by delivering high-quality post-acute care. “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,” Qureshi stated.
He further noted that this funding is a crucial step in building the country’s first recognized standard for outcome-based care, ensuring that partners can capitalize on the opportunities presented by CMS while providing a consistent patient experience.
As the healthcare industry prepares for these changes, Rainfall Health aims to position itself at the forefront of compliance solutions, helping hospitals navigate the shifting landscape and ultimately improve patient care outcomes.
