AI-Powered Chart Review Startup Charta Health Secures $22M in Series A Funding

Charta Health, a one-year-old startup specializing in AI-powered medical billing and coding optimization, has raised $22 million in series A funding. This latest investment brings the company's total funding for the year to $30 million, following an $8.1 million seed round in March.

Funding Details and Investor Support

The series A round was led by Bain Capital Ventures, with participation from Madrona, SV Angel, Refract Ventures, and South Park Commons. Charta plans to use the new capital to scale product development, expand its engineering and go-to-market teams, and complete more enterprise integrations with leading providers and payers nationwide.

AI-Driven Solution for Healthcare Administrative Challenges

Charta's platform uses artificial intelligence to automate manual patient chart review, a process crucial for linking clinical documentation to accurate coding and billing. The startup collaborates with healthcare providers to perform AI-enabled reviews of medical charts before submission, identifying missed coding opportunities, preventing claim denials, and ensuring compliance with billing standards.

Healthcare organizations across 43 states currently utilize Charta's software, reporting significant improvements in revenue and patient care quality while reducing administrative burden. On average, customers have experienced up to a 15.2% increase in relative value units per patient, resulting in an 11% increase in revenue.

Industry Impact and Market Opportunity

The U.S. healthcare system loses more than $300 billion annually due to billing errors, undercoding, and preventable claim denials. Charta's technology aims to address these issues by auditing 100% of pre-bill charts against client-specific billing and clinical guidelines. The platform boasts 10.6 times the chart coverage per full-time equivalent and a 72% improvement in accuracy compared to internal teams.

Justin Liu, co-founder of Charta Health, emphasized the company's focus on leveraging AI for back-office operations to reduce bottlenecks and support frontline care providers. The startup's approach includes requiring certain team members, particularly in engineering and go-to-market roles, to obtain medical coding certifications to ensure a deep understanding of the industry's challenges.

As health systems face unprecedented margin pressure, workforce shortages, and growing regulatory scrutiny, Charta's AI-enabled technology positions itself as a solution to these pressing industry needs. With its recent funding and growing customer base, Charta Health appears poised to make a significant impact in the healthcare administrative technology sector.