Procode, an AI-powered medical billing and revenue cycle management company serving private practice surgeons, has raised a $10 million Series A led by Health Velocity Capital. The funding follows Procode’s acquisition of The Auctus Group, the leading RCM company for plastic surgeons and dermatologists, and the publication of its first peer-reviewed research in Plastic & Reconstructive Surgery Global Open, the official open-access journal of the American Society of Plastic Surgeons.
Procode will use the new capital to expand its AI-powered RCM platform through additional acquisitions and accelerate growth into all surgical specialties and ambulatory surgical center billing. The $10 million will fund two additional acquisitions to be announced in the coming months, following the same playbook the company used with The Auctus Group. Procode’s platform spans three connected products: Procode, which automates the coding workflow from charge capture to submission and reduces coding-related denials; Procollect, an operating system for billing teams with native reporting and automation; and the Auctus Provider App, which puts real-time financial data at clients’ fingertips.
A retrospective comparative study published in PRS Global Open, titled “Artificial Intelligence for Automated CPT Coding in Plastic and Reconstructive Surgery Using a Fine-Tuned Hybrid LLM,” compared Procode AI’s fine-tuned hybrid LLM against OpenAI GPT-5, Google Gemini 2.5 Pro, Anthropic Claude Sonnet 4.5, and external professional auditors across 120 case reports at three difficulty levels. Procode achieved 86.7% overall accuracy, more than double the best-performing general-purpose LLM and more than twice the accuracy of human auditors. On the hardest cases, defined as those involving four or more CPT codes, Procode achieved 80% accuracy while general-purpose LLMs ranged from 5% to 12.5%.
Procode was founded in 2024 and has raised $14 million in total venture funding. The company serves more than 350 plastic surgery and dermatology providers through its acquisition of The Auctus Group. Health Velocity Capital invests exclusively in healthcare software and services companies, with its partners having more than 90 collective years as investors, entrepreneurs, and executives behind companies including Teladoc, Livongo, Change Healthcare, and MDLive.
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, 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.”
Kameron Rezzadeh, MD, FACS, Co-Founder and Chief Medical Officer, 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, Health Velocity Capital
