Procode has raised $10 million in Series A funding to expand its AI-powered medical billing and revenue cycle management platform across additional surgical specialties and ambulatory surgery centers. The round was led by Health Velocity Capital and brings Procode’s total venture funding to $14 million.
The company plans to use the capital to complete two additional medical billing acquisitions and apply its AI technology to the acquired businesses. Procode previously acquired The Auctus Group, a revenue cycle management provider serving plastic surgeons and dermatologists, and now supports more than 350 providers through that operation.
Its platform includes Procode, which automates surgical coding from charge capture through claim submission; Procollect, an operating system for billing teams that includes reporting, AI support and workflow automation; and the Auctus Provider App, which gives practices access to real-time financial information. The company charges on a contingency basis, tying its compensation to reimbursements collected for clients.
Procode also published a peer-reviewed comparative study evaluating its specialized surgical coding model against professional auditors and several general-purpose large language models. Across 120 operative reports, Procode reported 86.7% overall accuracy, compared with 42.5% for human auditors and 35.8% for the best-performing general-purpose model. Accuracy reached 100% on the easiest cases and 80% on the most complex group.
The company is pursuing a combination of software development and acquisitions to create a broader platform for private-practice surgeons. This model is intended to preserve the specialty expertise of established billing organizations while introducing automation that can reduce denials, improve coding accuracy and accelerate collections.
KEY QUOTES:
“We’re on track to double The Auctus Group’s revenue and quintuple its EBITDA margin. That matters because we bill on contingency. We only get paid when our clients get paid, so our growth is proof our AI is putting more dollars in providers’ pockets, not just automating paperwork.”
“Large health systems have had incredible technology companies innovating on their most pressing problems for years. We’re proud to innovate on behalf of the massive, long tail of RCM companies serving private practice surgeons.”
Jeff Cripe, CEO of Procode
“Our research shows that AI trained specifically for surgical coding can reliably outperform both humans and generic models. That’s a step change in what billing accuracy looks like for private practice surgeons.”
Dr. Kameron Rezzadeh, Co-Founder and Chief Medical Officer of Procode
“Over our careers, we have built deep expertise in revenue cycle management, developed relationships with exceptional billing practice owners, and grown increasingly convinced that this market is ready for a company that can finally deliver true end-to-end automation.”
“Procode is uniquely positioned to do that by giving small billing practice owners a best-in-class AI strategy no traditional buyer can match, while preserving the specialty expertise that made their businesses valuable and building the category-defining RCM platform for private practice surgeons.”
Grant Blevins, Partner at Health Velocity Capital
