Innovaccer acquired CaduceusHealth to combine its AI platform with the company’s revenue cycle management services and staff serving ambulatory healthcare providers.
Founded in 2014, Innovaccer has built software solutions that unify enterprise data and apply AI to automate manual tasks and streamline workflows for payers and providers. Last year, the company introduced Flow Auth, an AI-powered pre-authorization solution that is part of Flow by Innovaccer, an AI-powered revenue cycle suite designed to modernize financial operations for health systems. Other features include Flow Capture, an autonomous medical coding solution, and Flow Collect, an AI-powered denial management and revenue recovery tool.
Innovaccer currently claims to serve more than 200 health systems and payers, 95% of community pharmacies, and 80 million patients across the United States. Flow is built on Gravity, Innovaccer’s healthcare AI infrastructure platform.
With this acquisition, Innovaccer will incorporate CaduceusHealth’s solutions and ambulatory RCM expertise into its Flow agent AI RCM platform.
Financial details of the acquisition were not disclosed.
CaduceusHealth is a nearly 30-year-old company whose U.S.-based team serves approximately 4,000 healthcare providers and manages $5 billion in total patient costs annually for major healthcare organizations. When it comes to ambulatory care networks, Innovaccer executives said the acquisition will combine human expertise and AI automation scalability into a single platform.
“In the revenue cycle, the difference between good and great comes down to knowing which payers reject which codes, changing authentication requirements, or which rejections are worth fighting for. We’ve spent 30 years building that knowledge. Innovaccer’s AI Platform Forms allows managed services organizations to operate at a scale they can’t reach on their own, and that’s what this combination allows us to do,” said Jim Bonomo, founder and CEO of Caduceus Health, in a statement.
The acquisition expands Innovaccer’s Flow suite with full-stack revenue cycle capabilities, making Flow the first AI-native platform to integrate scheduling, patient engagement, and end-to-end revenue cycle management into a single operating layer for ambulatory care, the company said.
Abhinav Shashank, co-founder and CEO of Innovaccer, insists that this deal is different from typical acquisitions and service bolt-ons.
“CaduceusHealth operates under the Innovaccer umbrella, with its experts working directly within Flow as its operating platform,” Shashank told Fierce Healthcare. “But the bigger story is what happens to intelligence over time. Every decision Caduceus specialists make — how to challenge denials, how to resolve payer-specific edge cases, which claims are worth fighting and how — will be driven by AI. The agent is sharpened by the work that humans are doing. Caduceus-specific payer knowledge is encoded into the model. Expertise is built into the system, not in the person’s head.”
“This is not a service wrapper for an AI product,” Shashank asserted. “It’s a closed loop where human judgment trains the AI and the AI extends what human judgment can do. For providers, this means the platform will continue to improve the more you use it. And not only will it be available on request, but you’ll benefit from nearly 30 years of ambulatory RCM knowledge built into every workflow.”
This is Innovaccer’s fifth acquisition. The company acquired Story Health in September to expand its specialty care offerings. In January 2025, the company acquired Humbi AI, an actuarial software, services and analytics company, and that transaction was preceded by the acquisition of Cured, a digital marketing and CRM platform for healthcare, and Pharmacy Quality Solutions, a pharmacy payer performance technology, in 2024.
Innovaccer secured a $275 million Series F funding round in January 2025 to invest in AI, with the goal of becoming a “one-stop shop” for healthcare AI solutions. The health tech company has raised a total of $675 million to date.
Innovaccer leverages CaduceusHealth’s assets to deliver a single system that combines AI-driven automation with expert human oversight. This allows you to learn your organization’s payer mix, predict denials before they occur, and close large revenue gaps. Innovaccer executives said the combination represents a new model for the provider economy.
“When we started building Inglewood Health Physician Network, we had 50 providers and a $30 million business,” said Tony Orlando, chief financial officer of Inglewood Hospital and Medical Center. “Today, we have grown to more than 700 providers and more than $240 million in managed revenue. CaduceusHealth has been with us every step of the way. By joining Innovaccer, the next generation of providers will no longer have to choose between operational expertise and AI; they can have both.”
