Revenue cycle management solutions company CodaMetrix has closed a $40 million Series B funding round to create artificial intelligence solutions that improve the quality of medical coding. Founded in 2019, CodaMetrix’s CMX platform was created in partnership with Mass General Brigham to provide real-time auditing capabilities and seamless EHR integration, used as a feedback loop to continually improve AI learning. The software-as-a-service platform uses machine learning, deep learning, and natural language processing to continuously learn and act on clinical evidence stored in electronic health records (EHR). As a multi-specialty platform that classifies codes in radiology, pathology, surgery, gastroenterology and inpatient professional coding, Boston-based CodaMetrix said it is the first platform to impact every department by easing the administrative burdens of the billing staff. On average, CodaMetrix said, providers using the CodaMetrix platform experience a 60 percent reduction in coding costs, a 70 percent reduction in claim denials, a five-week acceleration in time to collect and improvements in supplier satisfaction, quality and compliance. The company has partnered with several health systems, including Mass General Brigham, University of Colorado Medicine, Mount Sinai Health System, Yale Medicine, Henry Ford Health and University of Miami Health System. “Medical coding is one of the most time-consuming, understaffed, and inherently error-prone parts of the healthcare system revenue cycle. “Hospitals face high demands on human and financial resources, and physicians often must work on tedious administrative processes outside of patient care,” Hamid Tabatabaie, president and CEO of CodaMetrix, said in a statement. “Our innovative AI platform delivers vital automation that not only addresses these pain points but, more importantly, changes claims data from notoriously unreliable to clinically valuable. “We are proud to serve leading provider organizations with a comprehensive and transformative automation solution, setting the standard for coding quality as part of our vision to change healthcare through the use of AI.” The company’s Series A financing was led by SignalFire. Medical organizations Frist Cressey Ventures (FCV), Martin Ventures, Yale Medicine, University of Colorado Healthcare Innovation Fund and Mass General Brigham also participated in the round. The Series B was led by Transformation Capital with continued support from existing investors SignalFire, Series A lead and Frist Cressey Ventures.
