Cadence
Cadence runs remote patient monitoring for chronic disease, staffed by nurses and AI triage agents.
On the record
Checkpoint: CMS finalizes the CY2027 Physician Fee Schedule rule on RPM outsourcing and reimbursement
The call
Cadence has real scale and sticky hospital relationships, but its Medicare billing model sits on a regulatory rule that could be rewritten within six months.
Cadence monitors patients remotely for hospitals and health systems, employing nurses to review data and bill Medicare for the service. It is hard to replace because hospitals have already wired Cadence into their computer systems and rely on it daily, but the main protection is regulatory: Medicare currently pays for outsourced clinical staff to do this work. In July 2026, the government proposed banning that exact staffing model, which would eliminate Cadence's main revenue stream if the rule becomes final. The one thing that changes everything is whether the government actually enforces this ban or carves out an exception for companies like Cadence.
Why
01
AI pressure: None apparent. AI here is Cadence's own tool, agents resolve 99% of alerts without a doctor, cutting its labor cost rather than replacing the company. Could AI do the core job? Only partly.
02
Bigger players: CMS / HHS. CMS's July 2026 proposed rule would ban the third-party outsourced clinical staffing Cadence bills Medicare through, final rule due within months. Could a giant copy it? Probably.
03
What protects it. Deep EMR integrations and equity ties with 20+ health systems, three of which are also Series C investors, make Cadence hard to rip out fast.
What would change this call
CMS finalizes CY2027 Physician Fee Schedule rule on RPM outsourcing ban (expected ~late 2026). Determines if Cadence's third-party clinical staffing model remains billable under Medicare.
Cadence announces shift of revenue mix toward value-based or at-risk contracts vs per-month RPM codes. Shows whether Cadence can route around the regulatory threat before the rule bites.
New health-system partnership or Series D announcement in the 6-12 months after the final rule. Signals investor and customer confidence has survived the regulatory shock.
Cadence announces shift of revenue mix toward value-based or at-risk contracts vs per-month RPM codes. Shows whether Cadence can route around the regulatory threat before the rule bites.
New health-system partnership or Series D announcement in the 6-12 months after the final rule. Signals investor and customer confidence has survived the regulatory shock.
Key numbers
- $100M Series C at $1.2B valuation
- 100,000+ active patients across 20+ health systems
- Medicare RPM spend jumped from $15M to $500M+, flagged by HHS OIG
Named risks
- CMS CY2027 final rule could ban outsourced clinical staffing, Cadence's core billing model.
- OIG and DOJ scrutiny of RPM billing patterns industry-wide since 2024-2025.
- Payer pushback from UnitedHealthcare on monthly RPM billing as of June 2026.
- Crowded competitive field including larger incumbents like Teladoc and Optum.
- Clinical outcome and revenue-growth figures are largely company-funded or self-reported.
Rivals, as read in July 2026
| Rival | Direction | Evidence |
|---|---|---|
| Teladoc Health (Livongo) | contesting | Established chronic-care telehealth giant operating in same market as of June 2026 |
| Optum/UnitedHealth | contesting | UnitedHealthcare scrutinizing monthly RPM billing model as of June 23, 2026 |
| ChartSpan | contesting | Organized Save Remote Monitoring coalition lobbying CMS against outsourcing ban, July 2026 |
| Best Buy Health (Current Health) | contesting | Competes in RPM/hospital-at-home space as of 2026 |
| Philips (BioTelemetry) | contesting | Cardiac remote monitoring incumbent competing for same health-system contracts |
| HealthSnap / Optimize Health | contesting | Crowded RPM/chronic-care-management field cited in 2026 competitor comparisons |
Questions people ask
- Is Cadence profitable in 2026?
- Cadence has not disclosed profitability. It says ARR tripled in 2025 and it closed a $100M Series C on June 23, 2026 at a roughly $1.2B valuation, but no net income or absolute revenue figure has been confirmed by the company.
- Could AI replace Cadence's clinical staff?
- Cadence itself is automating clinical work: it reports 99% of patient alerts were resolved without physician escalation and about 85,000 clinician hours were returned in 2025, per its own June 25, 2026 investor materials, though licensed staff remain required for Medicare billing.
- Is Cadence's business model at risk from regulation?
- Yes. CMS proposed a CY2027 rule on July 14, 2026 that would ban third-party outsourced clinical staffing for remote patient monitoring billing, the model Cadence's Medicare revenue depends on, with a final rule expected within about six months.
- Who are Cadence's biggest competitors?
- Cadence competes with Teladoc/Livongo, Optum/UnitedHealth, Best Buy Health's Current Health, Philips/BioTelemetry, and smaller RPM rivals like ChartSpan, HealthSnap and Optimize Health, none of which face the same regulatory exposure as directly as Cadence.
- Who owns Cadence?
- Cadence is privately held and venture-backed, with no public listing. Its June 2026 Series C was led by Spark Capital with participation from Thrive Capital, General Catalyst, Coatue, B Capital, and health-system investors Corewell Health Ventures, Memorial Hermann and Duke Health.
- How much funding has Cadence raised?
- Cadence raised $41M in an August 2021 Series A, $100M in a December 2021 Series B, and $100M in a June 23, 2026 Series C led by Spark Capital, bringing total funding to roughly $241-249M at a $1.2B valuation.
Timeline
- 2026-07-14CMS releases CY2027 proposed rule banning outsourced clinical staffing for RPM billing
- 2026-06-25B Capital publishes investment rationale citing AI alert automation and clinician-hour savings
- 2026-06-23Cadence closes $100M Series C led by Spark Capital at roughly $1.2B valuation
- 2026-03-05Cadence announces new Chief People Officer and CFO hires
- 2026-02-23Casey Bailey and Chris Holmes join as CPO and CFO
- 2021-12-15Cadence closes $100M Series B led by Coatue, crossing $1B valuation
- 2021-08-31Cadence emerges from stealth with $41M Series A and LifePoint Health partnership
- 2020-01-01Cadence founded by Chris Altchek in New York
Revision history
29 July 2026
First assessed. Losing its protection. The text above is fixed as of this date and is not edited afterwards.
In the same band
Sources
- Cadence raises $100 million to automate chronic disease care with regulated AI (2026-06-23)
- Cadence banks $100M to scale AI agents for chronic care (2026-06-23)
- Cadence Healthcare Revenue 2025 (2025-12-03)
- Why We Invested: Cadence (2026-06-25)
- Cadence - Headcount, Funding & Open Jobs (2026-06-29)
- CMS Proposes Sweeping Restrictions On Remote Patient Monitoring (2026-07-28)
- CMS' proposed remote patient monitoring ban, explained (2026-07-28)
- Cadence Raises $100M Series C (2026-06-23)
- Remote care management startup Cadence hits $1B valuation with $100M series B (2021-12-15)
- RPM company Cadence scores $100M, boosting valuation to $1B (2025-11-20)
- Cadence strengthens leadership team (2026-03-05)
- Cadence (cadence.care) Careers, Perks + Culture (2026-03-31)