Insider Brief
- Procode Inc., an AI-powered medical billing company for private practice surgeons, announced a $10 million Series A led by Health Velocity Capital, following its acquisition of The Auctus Group and its first peer-reviewed publication in PRS Global Open.
- The funding will support two additional acquisitions and expansion of Procode’s AI-powered RCM platform into all surgical specialties and ambulatory surgical center billing.
- A peer-reviewed study found Procode AI achieved 86.7% overall accuracy in CPT coding, more than double the best-performing general LLM (OpenAI, 35.8%) and human auditors (42.5%).
PRESS RELEASE — Procode Inc., an AI-powered medical billing, or revenue cycle management (RCM) company, serving private practice surgeons, has announced a $10 million Series A led by Health Velocity Capital. The funding follows Procode’s acquisition of The Auctus Group — the leading RCM company for plastic surgeons and dermatologists — and the publication of its first peer-reviewed research in Plastic & Reconstructive Surgery (PRS) Global Open, the official open-access journal of the American Society of Plastic Surgeons. Procode will use this new capital to expand its AI-powered RCM platform through additional acquisitions and accelerate growth into all surgical specialties and ambulatory surgical center (ASC) billing.
Procode AI’s ‘Auctus Provider App’ available in the app store
Three Companies, One Platform
The $10 million will fund two additional acquisitions, to be announced in coming months. Procode intends to follow the same playbook it used with The Auctus Group: acquire the best surgical billing companies and layer in Procode’s AI to drive better outcomes for surgeons:
- Procode: AI coding for surgery that automates the coding workflow from charge capture to submission, reduces coding-related denials, and fully captures reimbursements
- Procollect: An operating system for billing teams with native reporting, AI support and automation that reduces days in AR and accelerates reimbursements
- Auctus Provider App: An app that puts real-time financial data at Procode’s clients’ fingertips
“We’re on track to double The Auctus Group’s revenue and quintuple its EBITDA margin,” said Jeff Cripe, CEO of Procode. “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.”
Procode AI Outperforms Professional Coders and Major LLMs
The retrospective comparative study published in PRS Global Open, “Artificial Intelligence for Automated CPT Coding in Plastic and Reconstructive Surgery Using a Fine-Tuned Hybrid LLM,” compared Procode AI’s fine-tuned hybrid LLM against OpenAI GPT-5, Google Gemini 2.5 Pro, Anthropic Claude Sonnet 4.5, and external professional auditors in reviewing operative reports at three different difficulty levels. A total of 120 case reports were analyzed (40 Easy difficulty, 40 Medium, 40 High).
Procode achieved 86.7% overall accuracy — more than double the best-performing LLM (OpenAI, 35.8%) and more than twice the accuracy of human auditors (42.5%). On easy cases, Procode was perfect: 100%. On the hardest cases (defined as including 4 or more CPT codes), it achieved 80% while general-purpose LLMs ranged from 5% to 12.5%.
“Our research shows that AI trained specifically for surgical coding can reliably outperform both humans and generic models,” said Kameron Rezzadeh, MD, FACS, cofounder and Chief Medical Officer of Procode. “That’s a step change in what billing accuracy looks like for private practice surgeons.”
Health Velocity Capital Leads Series A
Grant Blevins, Partner at Health Velocity Capital, said: “Over our careers, we have built deep expertise in revenue cycle management, developed relationships with exceptional billing practice owners, and grown increasingly convinced that this market is ready for a company that can finally deliver true end-to-end automation. Procode is uniquely positioned to do that by giving small billing practice owners a best-in-class AI strategy no traditional buyer can match, while preserving the specialty expertise that made their businesses valuable and building the category-defining RCM platform for private practice surgeons.”
About Procode Inc. Procode is an AI-powered RCM company for surgeons in private practice. Founded in 2024, Procode builds intelligent billing infrastructure that removes administrative burden and maximizes reimbursement, giving surgeons the freedom to focus on patient care. The company has raised $14 million in total venture funding and serves more than 350 plastic surgery and dermatology providers through its acquisition of The Auctus Group.
About Health Velocity Capital Health Velocity Capital invests exclusively in innovative healthcare software and services companies. The firm’s partners have more than 90 collective years as investors, entrepreneurs, and executives helping to finance and build innovative companies that created important new healthcare markets and that became market leaders, including successful companies such as Teladoc, Livongo, Change Healthcare, MDLive, Contessa Health, Headspace Health, Aspire Health, Zipari, IVX Health, Artera (fka Well Health), Compassus, Aperio, The Advisory Board Company, Healthways (Tivity Health), US Renal Care, Spero Health, OnShift, and many others. The firm counts among its limited partners many of the largest and most influential healthcare organizations in the country and current and former senior healthcare executives who collectively represent organizations that insure more than 175 million Americans, operate more than 1,000 hospitals, provide pharmacy and PBM services to everyone in the United States, and sell software to every major US health system.
Peer-reviewed research paper:
https://journals.lww.com/prsgo/fulltext/10.1097/gox.0000000000007970~artificial-intelligence-for-automated-current-procedural
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