CodaMetrix, headquartered in Boston, has secured $40 million in Series B funding to enhance artificial intelligence (AI) solutions for healthcare and revenue cycle management.

The investment round was spearheaded by Transformation Capital, with SignalFire and Frist Cressey Ventures also participating as existing investors. Todd Cozzens, Co-Founder and Managing Partner at Transformation Capital, will be joining CodaMetrix’s Board of Directors.

The infusion of capital is earmarked for the further development of CodaMetrix’s AI-powered solutions, aiming to advance medical coding quality and streamline claims data processing within the healthcare industry.

Under the leadership of CEO and President Hamid Tabatabaie, CodaMetrix has established itself as a frontrunner in providing AI solutions tailored for multi-specialty medical coding. This sector represents a substantial market, estimated at $20 billion annually. CodaMetrix’s platform is currently in use across more than a dozen premier provider organizations and health systems, encompassing over 200 hospitals and 50,000 healthcare providers.

Formulated in collaboration with Mass General Brigham, the CMX platform is designed to enhance medical coding accuracy, generate clinically comprehensive data sets, reduce overall healthcare costs, and alleviate administrative burdens for healthcare providers. The platform incorporates real-time audit capabilities and seamless Electronic Health Record (EHR) integration, facilitating continuous improvement through feedback loops to enhance AI learning.

CodaMetrix has forged partnerships with esteemed healthcare systems such as Mass General Brigham, University of Colorado Medicine, Mount Sinai Health System, Yale Medicine, Henry Ford Health, and the University of Miami Health System, among others.

Hamid Tabatabaie, commenting on the recent funding achievement, expressed, “Our game-changing AI platform delivers vital automation, addressing significant pain points within the healthcare industry. Moreover, it transforms claims data from notoriously unreliable to clinically valuable, setting a new standard for coding quality and positively impacting healthcare through AI adoption.”

Todd Cozzens, Co-Founder and Managing Partner at Transformation Capital, highlighted the significance of AI technology in healthcare billing, citing the inefficiencies prevalent in the sector. He emphasized CodaMetrix’s autonomous coding platform as pivotal in enhancing accuracy, compliance, and revenue recovery for healthcare providers, ultimately allowing them to prioritize patient care.

Since its inception in 2019, CodaMetrix has utilized state-of-the-art AI technology to transform medical coding procedures, resulting in notable decreases in coding expenses and rejected claims for healthcare providers. On average, individuals utilizing the CodaMetrix platform have seen a 60% decrease in coding expenses, a 70% decrease in claims rejections, and a 5-week acceleration in payment processing time. Furthermore, enhancements in provider contentment, service quality, and adherence to regulations have been noted.

As healthcare systems continue to grapple with administrative challenges, CodaMetrix stands at the forefront, offering innovative AI solutions that promise to reshape the landscape of healthcare delivery and revenue cycle management.

For more such insightful news & updates around AI or Automation, explore other articles here. You can also follow us on Twitter.