Oura buys Counsel Health for $625m to put AI and doctors in its app

Oura is buying Counsel Health, an AI-native primary care company, for $625m in cash. The deal puts Counsel’s medical AI and its doctors inside the Oura app, Oura said on Tuesday. Ring wearers will go from a health insight to a chat with an AI, then to a physician. Oura expects to close the deal before the end of the year.

“This is a massive step in our mission to empower people to live healthier, longer, by delivering on the promise of a 24-7 doctor in your pocket,” said Tom Hale, chief executive of Oura.

The Finnish-founded company also gave its first results since it postponed its IPO in September. Revenue grew 153% to $533m in the quarter to 30 September, with $87m of adjusted EBITDA. Full-year revenue reached about $1.75bn, up 92%. The figures are preliminary and unaudited. Oura says it has more than six million members.

An AI first, a doctor within minutes

Counsel was founded by doctors and AI researchers. Its system uses specialised AI agents for tasks such as taking a medical history, reviewing records and detecting emergencies. Physicians give feedback that improves each agent, Counsel says.

A member starts by chatting with Counsel’s AI, which draws on medical records, past conversations, clinical guidelines and ring data. At any point, they can add a board-certified Counsel physician, who can diagnose, prescribe and refer. The companies plan to cover preventive, acute and chronic care. Chronic care includes reproductive health, ageing and cardiometabolic health.

“At Counsel, we’ve built medical AI around trust, safety and responsibility, keeping physicians in the loop for clinical decisions,” said Muthu Alagappan, Counsel’s founder and chief executive.

Counsel will keep selling to health plans, health systems and employers after the deal. Among surveyed Oura members who use Counsel, more than 90% said their Oura data helped them get better care, Oura says.

Not a medical device

Oura’s own statement says the Oura Ring is not a medical device. It is not meant to diagnose, treat or monitor illness. In August, a class action in California claimed Oura’s sleep stage estimates were AI guesses with a coin flip’s odds.

Oura is also widening its reach in retail. The Oura Ring 5 goes on sale in 1,000 Ulta Beauty stores from 22 November. It is the first health wearable the US beauty chain will carry, Oura said on Monday.