SmarterDx
Overview
SmarterDx is a healthcare technology company specializing in clinical AI solutions that enhance hospital revenue integrity and care quality. It was founded in 2020 by Michael Gao, Joshua Geleris, and Nathan Perilo. The company operates out of New York City and has successfully raised $71 million in funding, with the most recent Series B round bringing in $50 million. SmarterDx's technology automates clinical documentation reviews to improve accuracy and revenue optimization for hospitals.
Recent Developments
- May 2024: SmarterDx secured $50 million in Series B funding led by Transformation Capital, with participation from Bessemer Venture Partners, Flare Capital Partners, and Floodgate Fund. This round increased the total funding to $71 million. The funds will be utilized to further product innovation and support the company’s expansion by integrating new clinical and financial data and refining its algorithms for enhanced revenue and care quality.
- April 2024: SmarterDx was featured in a KLAS Research report, lauded for delivering rapid revenue cycle improvements through its clinical AI technology. Customers reported a 100% satisfaction rate, highlighting immediate increases in revenue and improved patient care metrics due to enhanced documentation accuracy.
- March 2024: The company announced plans to scale operations significantly as it aims to expand from 15 health system clients to hundreds. SmarterDx's AI has been proven to identify inaccuracies in 80% of reviewed charts, thereby supporting significant revenue recovery for hospitals.
- January 2024: SmarterDx's proprietary AI was recognized for its ability to ingest over 30,000 data points per patient visit, offering unmatched accuracy in harmonizing clinical and billing data, which has led to increased client adoption.
Company Information
| Attribute | Information |
|---|---|
| Founding Date | 2020 |
| Headquarters | New York City, NY, USA |
| Founders | Michael Gao, Joshua Geleris, Nathan Perilo |
| Revenue | <$5 Million (as of last known report) |
| Profits | Not publicly disclosed |
| Key Investors | Transformation Capital, Bessemer Venture Partners, Flare Capital Partners, Floodgate Fund |
| Industry | Healthcare Technology |
| Number of Employees | Approximately 79 |
Early History
SmarterDx was launched in 2020 in New York City, envisioned as a solution to the inefficiencies in hospital billing processes. The concept was conceived by Michael Gao during his tenure at NewYork-Presbyterian Hospital, where he observed the challenges hospitals faced with documentation inaccuracies leading to lost revenue. Leveraging his experience and that of his co-founders—from bioinformatics research by Joshua Geleris to Nathan Perilo’s tech expertise—the company set out to utilize AI to automate and improve clinical chart accuracy significantly. By 2022, SmarterDx had secured seed funding, setting the stage for its rapid expansion and impact in healthcare analytics.
Company Profile and Achievements
SmarterDx operates on a powerful clinical AI platform that automates the review of patient charts to improve accuracy in hospital billing and documentation. The company's AI processes over 30,000 data points per patient chart, ensuring documentation completeness and accuracy, which is crucial for hospital revenue cycles. Significant achievements include:
- ROI Results: SmarterDx provides a guaranteed ROI of 5:1, with hospitals discovering an average of $2 million in net new annual revenue per 10,000 discharges using its AI solutions.
- Market Adoption: The AI technology has been rapidly adopted by some of the largest health systems in the U.S., achieving a 100% client retention rate due to its impactful results.
- KLAS Recognition: Highly rated in the 2023 KLAS Emerging Solutions report, with clients noting immediate financial and operational improvements.
- Funding Success: The company has raised significant investment capital, underscoring confidence from prominent venture capital firms in its innovative solutions.
Current Operations and Market Position
SmarterDx’s current operations center around enhancing healthcare revenue cycles through its AI technology. The company targets large acute care hospitals and health systems, positioning its AI as a must-have for revenue cycle management. This strategic approach has afforded SmarterDx a unique market advantage, where it competes with both traditional CDI programs and emerging AI solutions. Its competitive edge comes from a highly specialized product that addresses errors and omissions in clinical documentation at superior accuracy and scalability compared to manual processes.
Conclusion
SmarterDx stands at the forefront of healthcare AI technology, pioneering innovative solutions that bridge the gap between clinical documentation and billing integrity. With substantial backing from leading investors and a robust track record of client satisfaction and revenue generation, it is well-positioned to expand its influence significantly within the healthcare sector. As it continues to refine its AI and broaden its market reach, SmarterDx aims to revolutionize how hospitals manage administrative tasks, driving both financial performance and care quality improvements.