Lotus Health nabs $35M for AI doctor that sees patients for free

The rise of AI in healthcare is reshaping how patients access medical advice, with individuals increasingly turning to chatbots like OpenAI's ChatGPT for health-related inquiries. KJ Dhaliwal, who previously sold the dating app Dil Mil for $50 million, has been contemplating the inefficiencies of the U.S. healthcare system since childhood, when he served as a medical translator for his parents. This lifelong concern led him to establish Lotus Health AI, a groundbreaking primary care service that operates around the clock in 50 languages. On Tuesday, Lotus Health announced it has raised $35 million in a Series A funding round co-led by CRV and Kleiner Perkins, bringing its total funding to an impressive $41 million. While many are already leveraging AI for health advice, Lotus Health takes it a step further by providing comprehensive medical care, which includes diagnosis, prescriptions, and referrals to specialists. Essentially, the platform is creating an AI doctor that operates similarly to a traditional medical practice, boasting the necessary licenses, malpractice insurance, HIPAA-compliant systems, and access to patient records. What sets Lotus apart is its heavy reliance on AI to perform tasks traditionally held by doctors, including asking pertinent questions. However, recognizing the potential for AI inaccuracies, the company ensures that all diagnoses, lab orders, and prescriptions are reviewed by board-certified human physicians from prestigious institutions like Stanford, Harvard, and UCSF. Lotus has developed an innovative AI model that combines the latest evidence-based research with patient histories to formulate treatment plans. "AI provides the recommendations, but qualified doctors are the ones who validate them," Dhaliwal explained to TechCrunch. Lotus is also aware of the limitations of virtual care; for urgent medical issues, the platform promptly directs patients to local urgent care facilities or emergency rooms, and in cases requiring physical examinations, patients are referred to in-person physicians. Entrusting such a significant role in medical decision-making to AI is a bold move, especially considering the stringent regulations in healthcare. As CRV general partner Saar Gur, who led the investment round and now sits on Lotus' board, remarked, "There are many challenges, but it's not as daunting as sending astronauts to the moon." With the telemedicine frameworks developed during the pandemic and recent advancements in AI, Gur believes Lotus is well-equipped to navigate existing regulatory and technical obstacles. "It’s a big swing," he noted, emphasizing the company's ambition to fundamentally transform primary care. In an era where primary care physicians are in short supply, Lotus claims it can accommodate ten times more patients than a conventional practice, even with a 15-minute limit on each consultation. Although Lotus is not the only startup pursuing the AI doctor concept, such as Lightspeed-backed Doctronic, it currently distinguishes itself by offering all its services at no cost. Dhaliwal indicated that future business models may involve sponsored content or subscriptions, but for now, the focus remains on enhancing the product and attracting patients.