Challenge Goal
For the fifth annual Massachusetts Digital Health Sandbox Challenge, the Massachusetts eHealth Institute (MeHI) is seeking startups and entrepreneurs who are developing and validating digital health-based solutions that improve healthcare affordability, strengthen access to care and enhance the efficiency of the Commonwealth’s healthcare system. Challenge finalists will compete for $1,100,000 in grant funding to support validation projects with MeHI’s Digital Health Sandboxes.
Rising healthcare costs continue to place increasing pressure on Massachusetts patients, families, employers, providers, payers and state government. At the same time, administrative complexity, workforce challenges, and growing demand for services are creating additional barriers to timely, coordinated, and affordable care.
Governor Maura Healey and Lieutenant Governor Kim Driscoll convened the Health Care Affordability Working Group to identify actionable strategies that reduce unnecessary health care costs, improve system efficiency and ensure Massachusetts residents continue to have access to affordable, high-quality care. The Working Group's first set of recommendations include a focus on harnessing technology, including strengthening health information data exchange and safely piloting artificial intelligence tools to improve care coordination and reduce administrative costs. Building off these recommendations, this year's Digital Health Sandbox Challenge will prioritize solutions that support innovative healthcare models, strengthen data exchange by leveraging existing health information exchange infrastructure and safely apply AI to create efficiencies across the healthcare system.
Program Overview
The Massachusetts Digital Health Sandbox Challenge is designed to accelerate the development and validation of digital health solutions that address important healthcare challenges in Massachusetts.
Applicants from across the country are invited to apply. MeHI staff will evaluate applicants and select up to 20 companies as semifinalists. Applications will be reviewed on the proposed solution’s uniqueness in the market, potential commercial viability and ability to support the goals of the Access and Affordability Challenge.
Semifinalist companies will be asked to complete a Sandbox Matchmaking Survey to be shared with the cutting-edge research and development organizations from the Massachusetts Digital Health Sandbox Network. MeHI will help match the semifinalists with sandboxes to identify potential partners. Sandboxes and semifinalists will meet during February 2027 to discuss potential projects and identify research partners. After the meetings, the sandboxes will inform MeHI which companies they could partner with for the program. MeHI will then select eight to 10 companies to participate in the program. Each selected company will be matched with one sandbox.
All selected companies will take part in Mass Digital Health Connects, a series of virtual workshops featuring leaders from across the Massachusetts digital health ecosystem. Winning companies will also be eligible for the Sandbox Mentorship Program, which connects companies with experienced mentors who provide strategic guidance, healthcare expertise and real-world implementation insights as they develop and validate their solutions.
During this program, participants will also work with their sandbox matches to scope projects to test and validate their solutions to help bring them to market faster. MeHI will support participants in preparing detailed project plans outlining how the award funding would be used to complete the scoped sandbox project. Expert judges will recommend four winners to MeHI. Each winner’s sandbox project will be completed by their sandbox partner with input and participation from the company. The funding for each project will be paid directly to the Sandbox and must be used to cover the Sandbox partner’s fees. This level of funding can typically cover user experience testing, access to cutting-edge lab facilities and subject matter experts, or a small unpaid pilot in a healthcare setting. No funding will be provided directly to the winners.
The program will culminate in an in-person pitch event, where selected companies will present their solutions and proposed Sandbox projects for the opportunity to receive funding to support validation activities.
The deadline to apply is Friday, December 4, 2026. Application process will open soon.
Information Session
Wednesday, Oct. 28 | 11 a.m. - 12 p.m.
Challenge Areas and Solutions Sought
The following priority areas are informed by the recommendations of the Healey-Driscoll Health Care Affordability Working Group and reflect opportunities where MeHI believes digital health innovation can help improve healthcare affordability, access and efficiency across the Commonwealth. This is not an exhaustive list, and applicants with innovative solutions that advance these goals are encouraged to apply.
All applicants should consider how their solution can improve affordability and access while supporting the unique needs of underserved populations including rural communities, Medicaid populations, older adults and individuals facing geographic, cultural, language, accessibility, broadband access or digital literacy barriers. All AI-enabled solutions must demonstrate a responsible and safe use of AI in healthcare, including incorporating appropriate protective measures for patient privacy and transparency.
- Supporting Innovative Healthcare Models
- Solutions that enable care to be delivered in more appropriate, accessible or lower-cost settings including home and community-based care, virtual care, and other alternative care models.
- Digital tools that strengthen care coordination and help patients navigate providers, services, benefits and other resources.
- Solutions that support the prevention and management of chronic conditions and reduce avoidable utilization of higher-cost healthcare services.
- Technologies that expand access to services experiencing significant cost or capacity pressures, including behavioral health and long-term services and supports.
- Strengthening Health Information Exchange and Data Sharing
- Solutions that leverage existing health information exchange infrastructure to improve the secure exchange of actionable health information across providers and care settings.
- Technologies that improve interoperability and enable providers to access timely, relevant patient information.
- Tools that improve communication and coordination between health systems, providers, payers, community-based organizations and other organizations involved in patient care.
- Safely Applying Artificial Intelligence to Create Healthcare System Efficiencies
- AI-enabled solutions that automate or streamline administrative processes that may be repetitive, time-consuming and cost-driving.
- AI tools that improve care coordination, workflow efficiency, resource allocation and other operations.
Eligibility
- Applicants must propose a new solution that is not yet widely commercially available.
- Applicants do not need to meet a minimum requirement of revenue or investment to participate in the program; however, this program is aimed at companies that have at least a minimum viable product that is ready to be validated with a Sandbox organization. Companies that have participated in an accelerator program previously will receive preference.
- Applicants may be located anywhere in the U.S. MeHI has set a goal of 50% of the participating companies having a presence in Massachusetts.
- Mass Digital Health Connects and the Sandbox Mentorship Program will be virtual; however, participants must be willing to participate in a live pitch event at the end of the program. The pitch event will take place in Massachusetts in June 2027.
- Participants must agree to participate in annual follow-up surveys for at least five years after the end of the program. The online survey will ask about company metrics including, but not limited to:
- Number of jobs created at your company
- Number of jobs at your company based in Massachusetts
- Number of new customers gained
- Number of new patents, copyrights or trademarks obtained
- Amount of capital and non-dilutive funding raised
- In-kind funding and resources provided to support your Sandbox project for companies selected as Challenge winners
- Diversity of your board members and/or executive team