Procode raises $10M Series A to expand AI medical billing across surgical specialties
What's the deal? Procode, an AI-powered medical billing company serving private practice surgeons, has raised a $10 million Series A led by Health Velocity CapitalDealroom has a profile for this one. Try Dealroom →. The Los Angeles startup will use the capital to fund two more acquisitions and expand into all surgical specialties and ambulatory surgical center billing.
Why now? The round follows Procode's acquisition of The Auctus GroupDealroom has a profile for this one. Try Dealroom →, a revenue cycle management (RCM) company for plastic surgeons and dermatologists, and its first peer-reviewed study. Chief executive officer Jeff Cripe said the company is "on track to double The Auctus Group's revenue and quintuple its EBITDA margin."
What's the endgame? Procode plans to repeat its Auctus playbook: acquire top surgical billing companies and layer in its AI to reduce denials and speed reimbursements. It bills on contingency, getting paid only when clients get paid.
The proof point: A retrospective study in PRS Global Open pitted Procode's fine-tuned hybrid model against OpenAI GPT-5, Google Gemini 2.5 Pro, Anthropic Claude Sonnet 4.5, and human auditors across 120 operative reports. Procode hit 86.7% overall accuracy — more than double the top LLM (OpenAI, 35.8%) and human auditors (42.5%). On the hardest cases, it scored 80% versus 5% to 12.5% for general-purpose models.
"Our research shows that AI trained specifically for surgical coding can reliably outperform both humans and generic models," said Kameron Rezzadeh, cofounder and chief medical officer.
Investor view: Grant Blevins, partner at Health Velocity Capital, said the firm has "grown increasingly convinced that this market is ready for a company that can finally deliver true end-to-end automation." He argued Procode gives small billing practice owners "a best-in-class AI strategy no traditional buyer can match."
The signal: Large health systems have long attracted technology vendors, leaving the fragmented long tail of RCM firms serving private practices underserved. Procode is betting that specialty-trained AI, applied through acquisitions, can consolidate that market — and its jump from earlier rounds suggests investors are buying the thesis.
Read more: PR Newswire
Image credit: Generated with Gemini
