Freed vs Heidi Health
Jan-Erik Asplund
TL;DR: First an extremely fast growing category and top application of AI, now the AI medical scribe has quickly become commoditized as a feature. Freed, Heidi Health, Abridge and Ambience are all fighting back by expanding into broader clinical & revenue-cycle workflows with Sacra estimating that Freed hit $33M ARR in August 2026, up 22% so far this year.
We first covered AI medical scribe Freed AI in October 2024 as it grew from $1M to $13M in annual recurring revenue (ARR) in one year. We followed up in May 2025 as Freed hit $19M ARR following its announcement of its $30M Series A with Sequoia.
Key points from Sacra AI:
- Once one of the breakout AI applications, with clear ROI from saving doctors hours of documentation daily, the AI medical scribe is now effectively dead as a standalone category having been absorbed as a free, bundled feature into OpenEvidence, Doximity (NYSE: DOCS), Epic, and a growing list of other platforms, not unlike how Trello’s kanban became part of every project management & to-do app and meeting recording got “Gongified” & subsumed into every sales platform.
- Against the backdrop of increasing pricing pressure & incumbent distribution advantage hitting Freed’s self-serve product-led growth (PLG) motion & downmarket positioning the hardest, Sacra estimates that Freed hit $33M ARR in August 2026, with growth decelerating to 22% so far this year, up from $27M ARR at the end of 2025 when it grew +66% YoY—compared to Heidi Health, which Sacra estimates hit $50M ARR in 24 months (March 2026), valued at $900M & backed by Blackbird Ventures in its $100M September Series C, with a layered enterprise sales motion on top of PLG to sell into large health systems and a focus on ex-U.S. in less competitive markets as an Australia-based company.
- To fight back, Freed is taking its focus on & foothold with small, independent clinics and bundling together the platform that they need by expanding into medical search (OpenEvidence), AI medical coding (Fathom) and AI medical receptionist (EliseAI), echoing Abridge and Ambience’s expansion from documentation into broader clinical & revenue-cycle workflows for large health systems & enterprise-scale healthcare providers.
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