Fabric acquires UMC Digital Health to expand its virtual care customer base
Health IT company Fabric, which focuses on “care delivery and consumer experience,” announced this week that it had acquired UMC Digital Health. The company provides 24/7 virtual care services—including urgent, primary and mental health care—primarily for health plans, employers and healthcare systems.
The financial terms of the acquisition were not disclosed in an announcement. The buyout marks Fabric’s fifth in less than two years, as the company continues its growth trajectory. With this deal, it adds 400 new customers, all representing payers, health systems and employers providing benefits.
Fabric, which deploys AI-based conversational tools and a nationwide network of virtual clinics to support telehealth services offered by healthcare organizations and employers, effectively purchased a competitor with the UMC acquisition.
The company said it will fully integrate its AI to enhance UMC’s services.
"For Fabric, it’s about making healthcare more accessible,” Aniq Rahman, CEO and founder of Fabric, said in a statement. “We’ve already made meaningful progress in the payer and employer markets, and this acquisition allows us to deepen that impact. By bringing more payers and employers onto our platform, we’re creating a connected experience that streamlines workflows, reduces friction and costs, and ultimately drives better outcomes for members and our partners."
Fabric can now claim relationships with 75 health systems and 30,000 employers, representing 100 million people, the company said. Most benefit from its telemedicine platform, which allows patients to receive treatments for common ailments at a savings to payers who can then avoid paying for an in-person clinic visit.
Fabric claims their service saves payers $17 per patient per month, and that its telehealth visits are on average 89 seconds shorter than others, due to their asynchronous nature—meaning that providers and patients can connect through the platform’s text interface without needing to schedule a full block of time for a formal visit.
In many cases, the platform will help patients schedule care services as a follow-up, either to a specialty physician or primary care. This again can be done without a patient needing to go the traditional route of seeing a physician in person, being examined, and then referred to further services—all of which carry a cost.
In some cases, these can be done through the AI assistant, which is then reviewed by a clinician.
The purchase of UMC Digital Health is effective immediately, as the companies are both private. Fabric said it is backed by numerous investment firms, including General Catalyst, Thrive Capital, GV, Salesforce Ventures, Vast Ventures, BoxGroup and Atento Capital.
The company, launched in 2023, was initially called Florence, but it changed its name to Fabric in 2024.
Chad is an award-winning writer and editor with over 15 years of experience working in media. He has a decade-long professional background in healthcare, working as a writer and in public relations.