Procode has raised a $10 million Series A round led by Health Velocity Capital to fund acquisitions, expand its AI-powered revenue cycle management platform into additional surgical specialties, and grow its ambulatory surgery center billing business.
Procode Inc announced it has closed a $10 million Series A financing led by Health Velocity Capital. The company said the funding follows its acquisition of The Auctus Group, the leading RCM company for plastic surgeons and dermatologists, and the publication of peer-reviewed research evaluating its AI-powered surgical coding technology in Plastic & Reconstructive Surgery (PRS) Global Open, the official open-access journal of the American Society of Plastic Surgeons. Procode said it will use the capital to pursue additional acquisitions, expand into additional surgical specialties, and accelerate growth in ambulatory surgery center billing.
Expansion Plans
According to the company, the funding will support two additional acquisitions that are expected to be announced in the coming months. Procode said it plans to continue acquiring surgical billing companies and integrating its AI technology into their operations. The company said its platform includes Procode for AI-assisted surgical coding, Procollect for billing operations, and the Auctus Provider App, which provides clients with access to real-time financial data.
“We’re on track to double The Auctus Group’s revenue and quintuple its EBITDA margin,” said Jeff Cripe, CEO of Procode. “That matters because we bill on contingency—we only get paid when our clients get paid—so our growth is proof our AI is putting more dollars in providers’ pockets, not just automating paperwork. Large health systems have had incredible technology companies innovating on their most pressing problems for years. We’re proud to innovate on behalf of the massive, long tail of RCM companies serving private practice surgeons.”
Study Evaluates AI Coding Performance
Procode also highlighted findings from a peer-reviewed study published in PRS Global Open evaluating its AI model for automated CPT coding in plastic and reconstructive surgery. The retrospective study compared the company’s hybrid large language model with OpenAI GPT-5, Google Gemini 2.5 Pro, Anthropic Claude Sonnet 4.5, and professional coding auditors across 120 operative reports of varying complexity.
According to the company, its model achieved an overall coding accuracy of 86.7%, compared with 35.8% for the highest-performing general-purpose large language model and 42.5% for human auditors. The company reported 100% accuracy on cases classified as easy and 80% accuracy on the most complex cases included in the analysis.
“Our research shows that AI trained specifically for surgical coding can reliably outperform both humans and generic models,” said Kameron Rezzadeh, MD, FACS, cofounder and Chief Medical Officer of Procode. “That’s a step change in what billing accuracy looks like for private practice surgeons.”
Executive Comment
Grant Blevins, partner at Health Velocity Capital, said: “Over our careers, we have built deep expertise in revenue cycle management, developed relationships with exceptional billing practice owners, and grown increasingly convinced that this market is ready for a company that can finally deliver true end-to-end automation. Procode is uniquely positioned to do that by giving small billing practice owners a best-in-class AI strategy no traditional buyer can match, while preserving the specialty expertise that made their businesses valuable and building the category-defining RCM platform for private practice surgeons.”
Photo: Procode Inc
