Fathom Secures $46M in Series B Funding | Company

SAN FRANCISCO–(BUSINESS WIRE)–Nov. 9, 2022–

breaststrokethe leader in medical coding automation, today announced the closing of a $46 million Series B funding led by Capital of Alkeon and Lightspeed Venture Partnerswith participation from Cedars-Sinai, Vituity’s Inflect Health, ApolloMD as well as existing investors Founders Fund and Tarsadia. Galym ImanbayevMD, Partner at Lightspeed, and Marc McLaughlin, general partner of Alkeon Capital, will join Fathom’s board of directors. The Series B round brings Fathom’s total funding to $61 million.

“Widespread autonomous medical coding is one of the first steps in rebuilding America’s health care payment system into something that actually works for providers, payers, and patients,” said Andrew Lockhart, CEO and co-founder of Fathom. “With inflation and severe staffing shortages driving up costs at a time of shrinking revenues, automation has become a critical lever to ensure the financial sustainability of our healthcare system. This funding will allow us to dramatically increase the number of specialties and health systems we support.

Demand for Fathom’s medical coding AI, which has both the highest automation rates and the widest specialized coverage, is increasing in the wake of the pandemic. A report of bath and company, 2022 Healthcare Provider IT Report: Post-Pandemic Investment Priorities, found that clinician shortages and wage inflation are driving demand for solutions that improve productivity and alleviate labor needs. He said software is one of the top five strategic priorities for 80% of vendor organizations, with revenue cycle management (RCM) among the most strategically important categories for software investment in 2023.

“The healthcare industry has been trying for years to streamline the medical coding process, with no significant progress. Fathom is the first company to develop and deploy true automation to address this issue, leveraging natural language processing and of deep learning in an architecture that enables rapid real-world deployment and performance,” said Galym Imanbayev, MD, Partner at Lightspeed Venture Partners. “We are excited to support Fathom in its mission to reduce billions dollars of wasted dollars caused by today’s inefficient coding processes to ultimately have a positive impact on healthcare organizations, payers and the patients they care for.”

Fathom will use the proceeds from the funding to continue to scale its engineering team. “We have been fortunate to build a base of world-class technologists at Fathom. With this funding, we will be able to build on this foundation and continue to drive performance for our clients,” said Christopher Bockman, Fathom CTO and co-founder. The growing technical team will enable Fathom to increase automation rates, expand its specialist support, and meet explosive demand from vendors struggling with the escalating costs and complexity of medical coding. Since its inception, Fathom has continually set new standards in self-directed coding by delivering the highest automation rates in the industry, coding more than twice as many meetings annually as any other company.

“Administrative expenses account for a quarter of the $4 trillion spent annually on health care in the United States, and that burden falls disproportionately on providers whose margins are extremely thin,” said Mark McLaughlin, general partner. at Alkeon Capital. “Fathom’s proprietary medical coding AI plays a critical role in increasing automation rates (30-50% higher than the competition) and accelerating ROI (full deployment in 4-6 weeks), which will significantly reduce administration costs for the healthcare system. We are confident that Fathom will revolutionize the coding industry, and the Alkeon team is thrilled to partner with Andrew and Chris on the next phase of Fathom’s growth journey.

About Fathom

breaststroke is the nation’s leading medical coding automation platform, an AI solution that merges the best of deep learning and natural language processing (NLP) to automate medical coding with precision and efficiency. unprecedented. Fathom offers the highest automation rates and the widest specialized coverage to help customers increase speed and accuracy while reducing costs.

Fathom is backed by world-class investors including 8VC, Alkeon Capital, ApolloMD, Founders Fund, GV, Lightspeed Venture Partners, Tarsadia and Vituity’s Inflect Health. For more information, visit fathomhealth.comor follow the company on LinkedIn.

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KEYWORD: CALIFORNIA UNITED STATES NORTH AMERICA

INDUSTRY KEYWORD: DATA MANAGEMENT HEALTH TECHNOLOGY HEALTH TECHNOLOGY SOFTWARE ARTIFICIAL INTELLIGENCE

SOURCE: Fathom

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PUB: 09/11/2022 12:00/DISC: 09/11/2022 12:02

http://www.businesswire.com/news/home/20221109005415/en

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