Artificial intelligence-powered revenue cycle management (RCM) company Procode AI picked up $10 million in series A funding to expand its platform to private practice surgeons.
Health Velocity Capital led the funding round.
Procode AI’s strategy is to acquire and vertically integrate AI technologies within companies rather than selling standalone AI products, co-founder Jeff Cripe told Fierce Healthcare in March. Its AI coding copilot translates operative reports into billing and diagnostic codes, which executives say significantly reduces manual coding time and downstream denials.
The startup currently works with more than 350 plastic surgery and dermatology providers through its acquisition of The Auctus Group, executives say. It has raised $14 million in venture funding to date.
“We’re on track to double The Auctus Group’s revenue and quintuple its EBITDA margin,” Cripe said in a statement. “That matters because we bill on contingency — we only get paid when our clients get paid — so our growth is proof our AI is putting more dollars in providers’ pockets, not just automating paperwork. Large health systems have had incredible technology companies innovating on their most pressing problems for years. We’re proud to innovate on behalf of the massive, long tail of RCM companies serving private practice surgeons.”
The newly announced funding will back two additional acquisitions, which executives say will be announced in the coming months. The acquisitions aim to accelerate the company’s growth into all surgical specialties and ambulatory surgical center (ASC) billing.
Alongside the funding announcement, Procode AI also announced the publication of its first peer-review research in the American Society of Plastic Surgeons’ open access journal, Plastic & Reconstructive Surgery (PRS) Global.
The study compared Procode AI’s hybrid large language model (LLM) against OpenAI GPT-5, Google Gemini 2.5 Pro, Anthropic Claude Sonnet 4.5 and external professional auditors. It analyzed 120 case reports at varying difficulties, with Procode achieving 87.5% accuracy—more than double of the best-performing LLM and twice the accuracy of human auditors, according to the study findings.
Procode Co-Founder and CMO Kameron Rezzadeh, M.D., said in a statement the study shows solutions “trained specifically for surgical coding can reliably outperform both humans and generic models.”
“That’s a step change in what billing accuracy looks like for private practice surgeons,” Rezzadeh said.