AI-based revenue cycle management (RCM) startup RapidClaims has raised $8 million in its Series A funding round led by Accel, with participation from Together Fund, the firm said in a statement on April 2.
The funding will be utilised for expansion and to enhance its AI-powered platform, which helps hospitals and physician groups cut claim denials and reduce revenue cycle costs by up to 70%.
Founded in 2023 by Dushyant Mishra, RapidClaims has seen 6x growth in the last four months and expects to expand 5x in the coming quarters. The company integrates with over 15 electronic health record (EHR) systems, allowing hospitals to onboard within weeks. The firm claims that its automation technology improves medical coding, clinical documentation, and claims scrubbing, enabling faster reimbursements and minimizing financial losses.
The firm also raised a seed round of $3 million last year led by Together Fund with angel investors from prominent US healthcare organizations, including Oscar Benavidez (Executive Director, Massachusetts General Hospital, Matthew Zubiller (ex-CEO, e4health), Ankit Jain (founder & CEO, Infinitus), and Sachin Jain (healthcare leader), among others.
With healthcare claim denial rates increasing from 7% to 13%, hospitals are losing billions in potential revenue. RapidClaims is tackling this issue by optimizing mid-revenue cycle processes, ensuring accurate coding, improved documentation, and compliance with payer requirements.
“We are live with more than 25 specialties and have achieved high autonomous accuracy in over 20 of those—a level of performance that’s unheard of in the market,” said Dushyant Mishra, founder & CEO of RapidClaims. “Our multi-specialty, off-the-shelf AI solution sets us apart from traditional, narrowly focused tools.”
Its key solutions include, RapidCode which automates medical coding with 98% accuracy. Rapidcdi that enhances clinical documentation for compliance and Rapidscrub which preemptively fixes claim errors, reducing denials.
The startup's few-shot learning model enables rapid customization, helping hospitals adopt AI-driven revenue cycle management without requiring massive datasets.
Investors believe RapidClaims is well-positioned to transform the $250 billion RCM market.
“Revenue cycle inefficiencies cost the U.S. healthcare system over $250 billion annually, with claim denials forming a major share of that loss. RapidClaims has taken a truly differentiated approach to solving this problem in the mid-revenue cycle through their AI platform that stands out for its deep customizability and rapid time-to-value—traits that are exceptionally rare in healthcare technology,” said Shekhar Kirani, Partner at Accel.
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