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

Charta Health, a startup leveraging artificial intelligence to optimize medical billing and coding, has raised $22 million in a Series A funding round led by Bain Capital Ventures. The investment, which brings the company's total funding to $30 million this year, aims to accelerate product development and expand its market presence.

AI Technology Streamlines Chart Review Process

Charta Health's AI-powered platform automates the manual patient chart review process, addressing a significant pain point in healthcare administration. The technology performs pre-bill audits on 100% of charts, identifying missed coding opportunities and potential claim denials while ensuring compliance with billing standards.

The company reports that its customers have experienced up to a 15.2% increase in relative value units per patient, resulting in an 11% boost in revenue. Additionally, the platform offers 10.6 times the chart coverage per full-time equivalent employee and a 72% improvement in accuracy compared to internal teams.

Addressing Healthcare Industry Challenges

Founded by Justin Liu and Scott Morris, former engineers at Rockset, Charta Health aims to tackle significant issues in the healthcare industry. The U.S. healthcare system loses over $300 billion annually due to billing errors, undercoding, and preventable claim denials. With health systems facing unprecedented margin pressure, workforce shortages, and increasing regulatory scrutiny, the demand for AI-enabled technologies in healthcare operations is growing.

"We saw that it was a notoriously broken industry—there's so much legacy technology, fragmented data, a ton of overhead and administrative burden, and it's a highly inefficient industry," Liu stated in an interview with Fierce Healthcare.

Market Traction and Future Plans

Charta Health currently serves 100 healthcare organizations across 43 states, including Eventus WholeHealth, Family Care Center, and Preventive Measures. The company plans to use the new funding to scale product development, grow its engineering and go-to-market teams, and complete more enterprise integrations with leading providers and payers nationwide.

One customer, KidsCare Home Health, reported significant improvements after adopting Charta's technology, including a 25%-plus reduction in clinical management workflow duties and an estimated 10,000 hours saved annually.

As the healthcare industry continues to grapple with administrative challenges, Charta Health's AI-driven approach to chart review and medical coding represents a promising solution for improving efficiency and accuracy in healthcare operations.