Devoted Health is raising a new round of funding at a $25 billion valuation

Medicare advantage Patrick T.

Fallon / AFP via Getty Images Healthcare startup Devoted Health is raising a new round of funding.

The round could value the healthcare company at $25 billion.

Devoted Health was founded by brothers and former healthcare executives Ed and Todd Park Devoted Health is the latest startup to show that combining health and AI commands a premium valuation.

Just months after announcing a new round of funding, the Medicare Advantage startup is in talks to raise another round that could value the company at $25 billion, according to sources familiar with the matter.

That's a jump from the company's $16 billion valuation in a funding round raised earlier this year, according to sources.

Devoted Health, which is based in Waltham, Massachusetts, was founded in 2017 by brothers and former healthcare executives Ed and Todd Park.

The startup combines health insurance and medical care for elderly people enrolled in the Medicare Advantage market.

The company's proprietary AI tool, Orinoco, helps coordinate medical care for members.

Ed Park was previously the COO of athenahealth, and Todd Park was the chief technology officer of the United States in the Obama administration.

"We do not comment on our capital raising activity," said a company spokesperson.

The fundraising reflects growing investor enthusiasm for healthcare companies that use AI to improve both patient care and the economics of medicine.

The back-to-back rounds could also signal investor confidence in Devoted's ability to scale in one of healthcare's largest and fastest-growing markets.

Medicare Advantage has become a battleground for both incumbent insurers and venture-backed startups.