Procode AI
Category: AI in Healthcare
AI-powered revenue cycle management (RCM) company for surgeons in private practice, offering an AI Coding Copilot that automates surgical billing and coding. Procode AI was founded in 2024. The company is led by Jeff Cripe. Based in Los Angeles, California. Team size: 11-50. Total funding raised: $4M. Latest round: Seed. Key investors include Story Ventures (Lead), CHAP Health Ventures, Progression Fund, Dmitry Shevelenko (CBO, Perplexity).
AMW Analysis
Procode AI emerged from stealth in March 2026 with $4 million in seed funding and simultaneously acquired The Auctus Group, an RCM provider serving over 300 plastic surgery and dermatology practices. The company offers an AI Coding Copilot that automates surgical billing by translating operative reports into codes, achieving 90% faster processing with a 9% error rate compared to a 21% human baseline. Within five months of the acquisition, Procode AI added $2 million in annual recurring revenue. The acquisition-first go-to-market strategy provides immediate distribution and proprietary training data, positioning the company to address the fragmented $15 billion surgical billing market. Rather than selling AI tools to existing RCM firms, Procode AI is deploying an AI roll-up model, combining its automation technology with established billing infrastructure. The funding round was led by Story Ventures, with participation from CHAP Health Ventures, Progression Fund, and Dmitry Shevelenko.
AMW analysis, generated from 3 tracked news signals.
- Founded
- 2024
- Headquarters
- Los Angeles, California
- Team size
- 11-50
- Total funding
- $4M
Value proposition
AI-powered RCM purpose-built for private practice surgeons, combining an AI Coding Copilot that enables 90% faster coding with greater accuracy, an AR/denials management engine, and a unique go-to-market strategy of acquiring a billing company (The Auctus Group) for instant distribution and proprietary training data.
Products and solutions
Procode AI Coding Copilot (AI-powered surgical coding from operative reports), AR/Denials Management Engine (AI-driven accounts receivable and denial management), Auctus Provider App (mobile app for real-time financial and claims data)
Unique value
Only AI RCM platform built specifically for private practice surgeons, with a "buy the biller" acquisition strategy that provides immediate distribution, real surgical coding expertise, and proprietary claims data to train AI models — rather than selling standalone software to skeptical practices.
Target customer
Private practice surgeons and surgical groups, initially focused on plastic surgery and dermatology, with planned expansion into orthopedics, neurosurgery, spine surgery, and vascular surgery.
Industries served
Healthcare (Revenue Cycle Management for surgical private practices), Plastic Surgery, Dermatology
Technology advantage
LLM-powered Coding Copilot that translates complex surgical operative reports into billing/diagnostic codes with 90% faster throughput; proprietary training data from 300+ providers' real surgical claims via The Auctus Group acquisition; three-pronged AI suite (coding, AR/denials, provider app) creating an integrated RCM platform.
How they differentiate
Unlike general-purpose RCM platforms, Procode is hyper-specialized in surgical coding for private practice (plastic surgery, dermatology). Instead of selling software tool-by-tool, they acquired The Auctus Group (a top-3 dermatology biller serving 300+ providers) to get instant distribution, domain expertise, and proprietary training data. Their Coding Copilot is trained on real surgical claims data, creating a data moat competitors lack.
Main competitors
CodaMetrix (AI medical coding for hospitals/health systems), AKASA (AI-powered RCM for health systems), Waystar (RCM platform with AI capabilities)
Key partnerships
The Auctus Group (acquired, serves as distribution channel and RCM services arm)
Notable customers
300+ plastic surgery and dermatology providers (via The Auctus Group acquisition)
Major milestones
Founded 2024, Emerged from stealth March 2026 with $4M Seed round led by Story Ventures, Acquired The Auctus Group (top-3 dermatology biller, 300+ providers), Added $2M ARR in 5 months post-acquisition, Launched Coding Copilot, AR/Denials Engine, and Auctus Provider App
Growth metrics
$2M ARR added in 5 months post-acquisition; 300+ providers served; Coding Copilot enables 90% faster coding
Market positioning
Early-stage, specialty-first AI RCM platform targeting the underserved private practice surgeon market. Positioned as the first AI-native RCM built specifically for surgical private practices, differentiated by a "buy the biller" acquisition strategy that provides immediate distribution and proprietary data.
Geographic focus
United States (initially Los Angeles, expanding nationally)
About Jeff Cripe
Ex-Birchbox employee; Founder & CEO of Ara Labs (Techstars-backed, raised $30M); Investor at Oooh, beam, Tortoise, Open; BA in Humanities from Yale University
Latest news about Procode AI
- Procode AI emerged from stealth with $4M funding and acquired The Auctus Group, deploying an AI roll-up strategy in the $15B surgical billing market. Their AI coding copilot achieves 90% faster coding
- Procode AI emerged from stealth with $4M funding and acquired The Auctus Group, gaining immediate access to 300+ plastic surgery and dermatology providers. This strategic move combines AI-powered codi
- Procode AI emerged from stealth with $4M funding and acquired The Auctus Group, the leading RCM provider for 300+ plastic surgery and dermatology practices. Their AI Coding Copilot achieves 90% faster
More AI in Healthcare companies
Official website: https://www.tryprocode.com
