Akasa (formerly known as Alpha Health), a healthcare revenue cycle management automation platform, raised $60 million in a Series B funding round.
The company plans to use the latest funds to expand its team, scale operations to meet growing customer demand, and further invest in sales and marketing to boost market presence.
BOND led the series B round; as part of the funding Noah Knauf, general partner at BOND, will join the company’s board. Existing investors Andreessen Horowitz (a16z) and Costanoa Ventures also participated in the round.
Akasa provides hospitals with an AI-based solution that automates complex operational tasks such as revenue cycle management. According to the company, its models and algorithms have been trained on more than 178 million claims and remittances.
“Unified Automation can be deployed entirely remotely, and our proprietary expert-in-the-loop interface with Akasa’s team of revenue cycle specialists ensures exceptions and edge cases are resolved while the system learns in real-time from the actions they take,” said Varun Ganapathi, co-founder, and CTO of Akasa.
“With continuous machine-learning built-in, the need for costly or time-consuming upgrades and maintenance is eliminated.”
A 2019 study published in JAMA estimates that administrative costs account for $266 billion of wasteful healthcare spending annually. According to Akasa, the complex and highly manual system of claim preparation and billing is a key driver of healthcare costs in the US.
Malinka Walaliyadde, co-founder and CEO of Akasa, said: “We are incredibly optimistic about the coming year and our long-term opportunity to serve as a catalyst for improving efficiency in our healthcare system at scale. We remain focused on our mission to remedy financial complexity in order to reduce healthcare costs for everyone.”
According to Mercom funding data, healthcare revenue cycle management software companies have raised nearly $1 billion since 2010. AccuReg, a provider of front-end revenue cycle management solutions for health systems and hospitals, secured an undisclosed amount of financing from Elm Park Capital Management, a Dallas-based private investment firm.