OpenAI Acquires Healthcare Technology Startup Torch | Sheridan Capital Partners Completes Investment in ICANotes

Check out today’s featured companies who have recently completed an M&A deal, and be sure to check out the full list of past healthcare IT M&A.

OpenAI Acquires Healthcare Technology Startup Torch for $60 million, Source Says

OpenAI has Acquired the Healthcare Technology Startup Torch
Torch was Building a “Unified Medical Memory” for AI that Aimed to Bring a Patient’s Health Data into One Place
OpenAI and Torch Did Not Disclose the Terms of the Acquisition

OpenAI has acquired the health-care technology startup Torch, the company announced on Monday.

OpenAI purchased Torch for roughly $60 million, according to a source familiar with the deal who asked not to be named because the details are confidential.

Torch was building a “unified medical memory” for artificial intelligence that aimed to bring a patient’s health data, which is typically siloed and stored across a number of different vendors and formats, into one place.

Torch’s employees will join OpenAI as part of the acquisition, the companies said.

“I can’t imagine a better next chapter than to now get to put our technology and ideas in the hands of the hundreds of millions of people who already use ChatGPT for health questions every week,” Torch CEO Ilya Abyzov wrote in a post on X.

Abyzov previously co-founded another healthcare startup called Forward, which was a direct-to-consumer primary care business that carried out patient visits via tech-enabled “CarePods.” Forward abruptly shuttered operations in 2024.

OpenAI’s acquisition of Torch comes just days after it unveiled ChatGPT Health, a new experience that allows users connect their medical records and wellness apps to the AI chatbot…

Full release here, originally announced January 12th, 2026.

Sheridan Capital Partners Completes Investment in ICANotes, a Purpose-Built Behavioral Health Electronic Health Records Platform

Sheridan Capital Partners today announced the completion of its investment in ICANotes, a Practice Management (PM) and Electronic Health Record (EHR) software platform purpose-built for the behavioral health market. The investment comes at a time when behavioral health providers are facing rising demand for care alongside expanding documentation and compliance obligations. This has increased the need for EHR platforms designed specifically around mental health workflows. The ICANotes product helps clinicians streamline clinical documentation, strengthen compliance, and simplify practice management. Financial terms of the private transaction were not disclosed.

Founded in 1999 and headquartered in Baltimore, Md., ICANotes delivers a comprehensive, cloud-based EHR platform designed specifically for mental health professionals, including psychiatrists, therapists, counselors, social workers, and nurse practitioners. The Company’s AI-enhanced system supports clinical workflows and integrates advanced features that save time, support regulatory compliance, and enhance patient care. ICANotes serves a broad range of behavioral health organizations across outpatient, inpatient, and residential settings, focused on medication management, psychotherapy, substance use disorder treatment, trauma-focused care, couples and family therapy, case management, and psychosocial rehabilitation.

“As we searched for a strategic capital partner who could help us meaningfully scale, it became clear that the Sheridan team was the ideal choice given our strong cultural alignment and their relevant experience building healthcare technology businesses,” said Jamie Morganstern, CEO at ICANotes. “We are excited to partner with Sheridan as we continue to invest in our core PM and EHR solutions, while expanding platform capabilities to drive greater efficiency for our clinician customers.”

“We believe ICANotes is an outstanding business that has earned the trust of a wide variety of behavioral health providers by enabling management of an entire practice with one secure system,” said Jeff Foote, Partner at Sheridan…

Full release here, originally announced January 13th, 2026.