KODE Health Secures $27 Million in Series B Funding to Expand AI-Driven Medical Coding Solutions
- KODE Health raised $27 million in Series B funding to expand its AI-driven medical coding platform, addressing staffing inefficiencies in healthcare.
- The company, which connects hospitals with certified medical coders, processes over 250,000 medical records monthly and aims to enhance revenue cycle management.
KODE Health, an on-demand medical coding platform, has raised $27 million in Series B funding. The funding round was led by Noro-Moseley Partners, with participation from Mercury, FCA Venture Partners, Epsilon Innovation Fund, and 111 West Capital.
The investment will support KODE’s efforts to expand its network of certified coding professionals and enhance its AI-driven tools for more efficient revenue cycle management in healthcare.
Medical coding inefficiencies contribute to rising administrative costs, which account for approximately 15 to 30% of total U.S. healthcare expenditures. Traditional coding services often face staffing challenges and workflow bottlenecks, affecting hospital revenue cycles.
KODE’s platform seeks to address these issues by providing an on-demand marketplace that connects certified medical coders with healthcare providers, aiming to streamline the process and reduce operational costs.
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Founded in 2021 by industry veterans Brian Dessoy and Brad Sawdon, KODE offers a technology-driven approach that integrates artificial intelligence with human expertise. The platform allows medical coders to maximize their professional skills and income while enabling hospitals to improve their billing operations.
“KODE was born out of the healthcare industry’s fundamental need for more efficiencies and cost savings across the coding ecosystem,” said Brian Dessoy, Co-Founder of KODE Health.
“We’re thankful to our investors and partners for their ongoing support of our mission and look forward to continuing to scale.”
The company has seen significant growth, processing over a quarter million medical records per month while maintaining operational profitability. With more than 5,500 certified coding professionals on its platform, KODE has coded over 8 million medical records to date.
Looking ahead, KODE plans to expand beyond staffing solutions by integrating AI and predictive analytics into its platform. The goal is to optimize revenue cycle management for healthcare systems further, a move that investors believe will be critical as the industry continues to push for cost-effective administrative solutions.
Edited by Harshajit Sarmah
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