Procode AI, an AI-powered revenue cycle management (RCM) company focused on surgeons in private practice, has launched from stealth with $4 million in funding and the acquisition of The Auctus Group, a medical billing company serving plastic surgery and dermatology practices.
The company was founded in 2024 by Jeff Cripe, Kameron Rezzadeh, M.D., and James Baez-Silva. The funding round was led by Story Ventures with participation from CHAP Health Ventures, Progression Fund, and Dmitry Shevelenko, chief business officer at Perplexity.
Alongside the funding, Procode AI acquired The Auctus Group, a billing provider founded in 2012 that focuses on plastic surgeons and dermatologists. The firm serves more than 300 providers and is considered one of the largest billing organizations in the plastic surgery market. John Gwin, founder of The Auctus Group, will continue leading the RCM business following the acquisition.
Procode AI’s platform focuses on automating and improving medical billing processes using artificial intelligence. Its Coding Copilot technology translates operative reports into billing and diagnostic codes, enabling medical coders to work significantly faster while improving coding accuracy. According to the company, the technology allows coding teams to complete work up to 90% faster while reducing claim denials tied to coding errors.
The company also offers the Auctus Provider App, which provides surgeons with real-time insights into claims, financial performance, and revenue cycle activity. In addition, its AR and denials management engine uses AI to support decision-making across accounts receivable workflows, including charge posting, payment posting, and claim follow-up.
Procode AI says the platform aims to reduce administrative burdens for private practice surgeons while ensuring they are accurately and quickly reimbursed for procedures. Since acquiring The Auctus Group, the company reports adding $2 million in annual recurring revenue within five months.
The company plans to expand its AI-driven billing infrastructure to improve transparency and efficiency across the surgical revenue cycle while allowing providers to focus more on patient care rather than administrative tasks.
KEY QUOTES:
“Our cofounder is a surgeon. Our mission is personal and singular: create the first, best, and largest AI-powered revenue cycle management company for surgeons in private practice. The Auctus Group is a tech-forward, missionary team who want to build the next generation biller with us.”
Jeff Cripe, Cofounder Of Procode AI
“As a surgeon, choosing a medical biller means trusting all of your insurance-based income to one company. At Procode, we’re building technology that ensures that providers are reimbursed fairly for procedures that they perform, and that they are reimbursed faster than ever before.”
Kameron Rezzadeh, M.D., Cofounder Of Procode AI And Surgeon
“Most RCM AI products are vaporware. As CEO of The Auctus Group and a longtime HBMA leader, I’ve searched for AI technology that can better equip our team to deliver better billing outcomes for clients and, in Procode, we finally found that.”
John Gwin, CEO Of The Auctus Group
