SmarterDx, a leader in clinical AI for revenue integrity and care quality, announced it has secured $50 million in Series B funding led by Transformation Capital. This funding round also includes continued investments from Bessemer Venture Partners, Flare Capital Partners, and Floodgate Fund, bringing the total funding to date to $71 million. This investment will drive product innovation that will create additional value for health systems and support scale as the company expands.
SmarterDx utilizes clinical AI that uniquely understands clinical reasoning and provides complete auditability for enabling health systems to close their revenue integrity gap. Small errors or omissions in clinical documentation can lead to missed, rejected, or underpaid claims.
SmarterDx addresses this by providing second-level reviews of every patient chart, enabling hospitals and health systems to safeguard millions in revenue leakage and ensure that care quality is accurately represented.
With this funding round, SmarterDx will add new clinical and financial data integrations and continue to refine its proprietary algorithms that identify new revenue and quality opportunities for customers.
SmarterDx assessed an average of $2 million in net new annual revenue per 10,000 patient discharges for its clients, including some of the largest hospitals and health systems across the U.S. With a 100% client retention rate, a 5:1 ROI, and a KLAS client satisfaction score of 98, SmarterDx has quickly established itself as a leader in the healthcare revenue cycle solutions market.
KEY QUOTES:
“SmarterDx transforms clinical data into insights that are fully attributable and actionable. This has distinguished our product in a healthcare landscape where many AI solutions have been built on hype, have poorly defined value and focus on replacing people. Our focus has always been empowering clinical documentation integrity and coding teams to capture a more accurate, more complete patient picture and enabling providers to focus on patient care rather than paperwork.”
– Dr. Michael Gao, co-founder and CEO of SmarterDx
“We pursued a partnership with SmarterDx after hearing the profoundly positive feedback from the market. After spending time with the leadership team, we knew we wanted to be part of their story. Not only does this company have a solution that solves a complex problem that healthcare has long grappled with, but they are just getting started. There’s much more that their clinical AI can achieve. We believe that revenue cycle management is the next big health tech category as modern AI is ideal for understanding and automating the labyrinthic reimbursement and payment regime of our $4.5 trillion annual healthcare spend.”
– Todd Cozzens, managing partner, Transformation Capital
