Fathom, an AI-powered autonomous medical coding company, announced a strategic investment from CVS Health Ventures, the venture capital arm of CVS Health, to accelerate the adoption of enterprise-wide autonomous coding across healthcare organizations.
The companies said the investment reflects growing demand from both healthcare payers and providers for AI systems that improve operational efficiency and financial performance across revenue cycle management workflows.
Fathom develops autonomous medical coding technology that combines deep learning and natural language processing to automate medical coding processes across healthcare specialties. According to the company, its platform enables health systems to deploy coding automation across multiple departments simultaneously rather than relying on slower department-by-department implementations.
The company said its multi-specialty deployment model allows healthcare organizations to achieve automation rates above 90% while reducing implementation complexity and improving operational margins.
The investment comes as healthcare organizations increasingly prioritize revenue cycle management technology. According to a Bain & Company and KLAS Research survey cited by the company, revenue cycle management has become a leading priority area for healthcare IT investment.
Fathom was founded to automate medical coding workflows using artificial intelligence and has positioned itself as one of the leading autonomous coding providers in healthcare. The company is backed by investors including 8VC, Alkeon Capital, Cedars-Sinai, Founders Fund, GV, Lightspeed Venture Partners, and Tarsadia.
The company was recently recognized as the top solution for reducing the cost of care in the 2025 KLAS Emerging Solutions Top 20 Report and received a 95.5 out of 100 performance score in KLAS Research’s autonomous coding report.
According to the company, healthcare organizations adopting autonomous coding systems are increasingly seeing measurable returns on investment tied to coding accuracy, operational efficiency, and reduced administrative overhead.
KEY QUOTES:
“Fathom is already delivering real, measurable ROI at a time when the entire ecosystem is facing significant cost pressures. We believe Fathom’s accuracy has potential to become a trusted, consistent, and neutral representation of the care delivered, creating new opportunities to reimagine and strengthen payer-provider relationships.”
Carter Prince, Partner, CVS Health Ventures
“CFOs and revenue cycle leaders across the country are demanding real ROI stories from AI, and autonomous coding is delivering. By increasing efficiency through higher coding accuracy and consistency, we are not only improving patient and provider experience of care, we’re proving that AI can be a true catalyst for financial performance at enterprise scale. This investment from CVS Health Ventures supports the momentum we’re seeing and accelerates our ability to serve the growing demand from providers and health plans nationwide.”
Andrew Lockhart, CEO, Fathom
