Procode AI, an artificial intelligence-powered revenue cycle management (RCM) company, has secured $10 million in Series A funding to expand its platform to practicing surgeons.
Health Velocity Capital led the funding round.
Procode AI’s strategy is to acquire and vertically integrate AI technology within companies, rather than selling standalone AI products, co-founder Jeff Cripe told Fierce Healthcare in March. The company’s AI coding copilot converts operational reports into billing and diagnostic codes. This significantly reduces manual coding time and downstream rejections, executives said.
The startup now partners with more than 350 plastic surgery and dermatology providers through its acquisition of Auctus Group, executives said. To date, it has raised $14 million in venture funding.
“We are on track to double Auctus Group’s revenue and quintuple its EBITDA margin,” Cripe said in a statement. “This is important because we bill on a contingency basis, so we only get paid when our clients get paid. So our growth is not only about automating paperwork, but because our AI is putting even more money in the pockets of healthcare workers. There are incredible technology companies that have been innovating on the most pressing issues in large health systems for years, and we are proud to innovate on behalf of large, long-tail RCM companies serving practicing surgeons.”
The newly announced funding will support two additional acquisitions, which executives said they would announce in the coming months. The acquisition is intended to accelerate the company’s growth into billing all surgical specialties and ambulatory surgery centers (ASCs).
In parallel with the funding announcement, Procode AI also announced the publication of its first peer-reviewed study in the American Society of Plastic Surgeons’ open access journal, Plastic & Reconstructive Surgery (PRS) Global.
This study compared Procode AI’s hybrid large-scale language model (LLM) to OpenAI GPT-5, Google Gemini 2.5 Pro, Anthropic Claude Sonnet 4.5, and an external expert auditor. Research results show that Procode achieved 87.5% accuracy after analyzing 120 case reports at various difficulty levels. This is more than twice as accurate as the best-performing LLMs and twice as accurate as human auditors.
Kameron Rezadeh, MD, Procode co-founder and chief marketing officer, said in a statement that the study shows that “solutions specifically trained for surgical coding can reliably outperform both human and general-purpose models.”
“This is a big change in what billing accuracy looks like for practicing surgeons,” Rezadeh said.
