Xealth Secures Strategic Investment from Morningside Ventures to Expand Digital Health Enablement

Xealth, a digital health enablement platform used by leading health systems, announced a strategic investment from Morningside Ventures to support its national expansion. The partnership aims to scale Xealth’s integration across clinical workflows, helping hospitals more effectively manage digital health tools, therapeutics, and remote care programs.

Xealth functions as an embedded layer within the EHR, allowing clinicians to order, track, and manage digital health resources as easily as prescribing a medication. The platform also aggregates performance analytics to measure utilization, adherence, and outcomes. According to the company, over 12 million digital health orders have been facilitated to date across 100,000 clinicians and 3 million patients.

Why This Investment Matters

The investment reflects growing demand for centralized digital health management tools as health systems face increasing pressure to consolidate and rationalize their tech stacks. Morningside, an investor known for backing mission-driven healthcare startups, cited Xealth’s EHR-native capabilities as a key differentiator.

“Xealth addresses a critical infrastructure gap—making it easier for providers to prescribe, monitor, and measure digital tools directly within their clinical workflow,” said Stephen Bruso of Morningside Ventures in the funding announcement (PR Newswire, 2025).

Clinical and Financial Use Cases

Hospitals are increasingly layering digital health tools on top of traditional care to address gaps in chronic condition management, behavioral health, and remote patient monitoring. But adoption has been hindered by fragmented systems and poor EHR integration.

Xealth enables health systems to build digital formularies that reflect organizational priorities and evidence-based standards. These digital assets can include remote monitoring devices, mental health apps, digital therapeutics (DTx), and patient education content.

Health systems using Xealth report improvements in both clinical outcomes and ROI by:

• Reducing manual work in prescribing digital health tools
• Improving patient adherence to post-discharge instructions
• Tracking real-time engagement and outcome metrics for value-based contracts

Strategic Fit with Morningside’s Digital Health Portfolio

Morningside has invested in over 40 digital health companies, with a focus on tools that produce social and clinical benefit. Xealth’s plug-and-play integration and scalable analytics engine position it as a utility layer for care orchestration.

Mike McSherry, CEO and co-founder of Xealth, emphasized the cultural alignment: “Morningside shares our belief that digital health should be simple, scalable, and impactful for clinicians and patients alike.”

Looking Ahead

With this funding, Xealth plans to deepen EHR integrations, expand support for DTx and care-at-home programs, and grow its data science team to enhance outcomes benchmarking. As digital health adoption moves from experimentation to infrastructure, Xealth is positioning itself as the connective tissue across systems.

In a fragmented market still grappling with digital overload, the ability to simplify and scale health IT workflows may prove to be the next competitive differentiator for both hospitals and their technology partners.