SmarterDx – a leader in clinical AI for revenue integrity and care quality – announced a strategic investment from New Mountain Capital, a leading growth-oriented investment firm with over $55 billion in assets under management.
Launched in 2020 by Drs. Michael Gao and Joshua Geleris, SmarterDx is a proprietary clinical AI platform that helps hospitals analyze 100% of discharges, ensuring that each patient’s care is accurately captured and preventing any gaps in revenue integrity. And the company’s SmarterPrebill solution gives clinical documentation integrity (CDI) and coding teams the ability to validate every detail of patient care, helping hospitals recover millions in earned revenue while boosting care quality scores. SmarterDenials gives them a faster and more effective way to overturn denials and recover lost revenue.
With this investment, SmarterDx will continue to support its technology and AI platform while accelerating the existing product roadmap and developing complementary solutions. SmarterDx delivers a Day One, 5:1 ROI across some of the largest hospitals and health systems across the U.S. And the company has quickly established itself as a leading healthcare revenue cycle solutions provider with over 40 leading health systems spanning 180 hospital sites joining its clinical AI platform. SmarterDx was also recognized as one of Modern Healthcare’s 2024 “Best in Business” in the Newcomer – Startups category.
The deal is subject to customary regulatory approvals. And the deal is expected to close in the second quarter of this year.
Advisors: Cooley served as legal advisor, and J.P. Morgan Securities served as financial advisor to SmarterDx. Ropes & Gray served as legal advisor to New Mountain Capital.
KEY QUOTES:
“This strategic investment marks a pivotal moment in our journey to scale our AI platform and build new products that further helps capture hospitals’ differential – whether that’s in earned revenue, care quality, or operational efficiency. At SmarterDx, we believe that the most accurate and complete patient story is not just good documentation practice – it is an essential data layer that drives all aspects of healthcare. We are looking forward to having a partner in New Mountain Capital that shares our belief and will enable us to further strengthen our capabilities to support health systems and their patients.”
- Michael Gao, Co-Founder and CEO of SmarterDx
“Our north star is to help hospitals, and this will accelerate our ability to build AI solutions that drive real outcomes. There is a lot more to come, and we are incredibly excited for this next chapter where we can deliver even greater innovation.”
- Joshua Geleris, Co-Founder and Head of Product and Data Science at SmarterDx
“We have been deeply impressed by the SmarterDx platform and the physician-led team that Dr. Gao and Dr. Geleris have built. Their commitment to hospitals and health systems is remarkable, and we are excited to support what we think is one of the best teams in the health tech sector. New Mountain’s investment in SmarterDx comes off the back of our multi-year investment focus on the convergence of clinical and administrative workflows. We are excited to support SmarterDx as a major platform company focused on delivering high strategic value to healthcare providers.”
- Matt Holt, Managing Director and President, Private Equity, at New Mountain Capital
