What You Should Know:
– Fathom, an AI-powered medical coding automation platform raises $46M in Series B funding co-led by Alkeon Capital and Lightspeed Venture Partners with participation from Vituity’s Inflect Health, Cedars-Sinai, ApolloMD, Jonathan Bush, and other healthcare executives.
– The company plans to use the funding to advance the standard in automated medical coding in response to critical challenges facing providers. The Series B round brings Fathom’s total funding to $61M.
AI for Medical Coding
Founded in 2017, Fathom is the nation’s leading medical coding automation platform, an AI solution that fuses the best of deep learning and Natural Language Processing (NLP) to automate medical coding with unprecedented accuracy and efficiency. Fathom provides the highest automation rates and the broadest specialty coverage to help clients increase speed and accuracy while reducing costs.
The demand for Fathom’s medical coding AI, which has both the highest automation rates and broadest specialty coverage, is surging in the wake of the pandemic. A report by Bain and Company, 2022 Healthcare Provider IT Report: Post-Pandemic Investment Priorities, found that clinician shortages and wage inflation are driving demand for solutions that improve productivity and alleviate labor needs. It reported that software is one of the top five strategic priorities for 80% of provider organizations, with revenue cycle management (RCM) among the most strategically important categories for software investment in 2023.
“Widespread autonomous medical coding is one of the first steps to rebuilding America’s healthcare payments system into something that actually works for providers, payors, and patients,” said Andrew Lockhart, Fathom CEO and cofounder. “With inflation and severe staffing shortages driving up costs at a time when revenues are declining, automation has become a critical lever in ensuring the financial sustainability of our health system. This financing will enable us to radically expand the number of specialties and health systems we support.”