Procode AI Launches With $4M for Surgical Billing
Procode AI has launched from stealth with $4 million to bring AI-powered revenue cycle management (RCM) to private practice surgeons. The company also acquired The Auctus Group, a top biller for plastic surgeons, solidifying its focus on a specific vertical SaaS niche.
Procode AI was founded in 2024 by Jeff Cripe, Dr. Kameron Rezzadeh, and James Baez-Silva. The recent $4 million investment round was led by Story Ventures, with participation from CHAP Health Ventures, Progression Fund, and Dmitry Shevelenko, the Chief Business Officer of Perplexity. The acquisition of The Auctus Group, a specialized biller for plastic surgeons, signals Procode's strategy of targeting niche surgical practices. AI is increasingly used in plastic surgery for administrative tasks like streamlining CPT codes, reducing errors, and assisting with prior authorizations, which can be a significant administrative burden. The broader AI in medical billing market is projected to grow substantially, from an estimated $5.49 billion in 2026 to $15.08 billion by 2031. This growth is driven by the need to reduce the high costs associated with claim denials, which amount to hundreds of billions annually, and to address shortages of medical coders. Procode AI is entering a competitive space, but its focused, full-stack platform for surgeons aims to provide specialized automation, transparency, and accuracy. The use of AI can lead to significant labor savings and a reduction in denial rates for hospitals and clinics.
