Cedars-Sinai-backed medical coding automation company snags $46M

Fathom, a medical coding automation company, has raised $46 million in a series B financing round that saw participation from Los-Angeles based Cedars-Sinai.

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The company plans to use the financing to scale and grow its engineering team. The series B round brings Fathom’s total capital raised to $61 million, according to a Nov. 9 Fathom news release.

Along with Cedars-Sinai’s participation, Alkeon Capital and Lightspeed Venture Partners led the funding round.

“Widespread autonomous medical coding is one of the first steps to rebuilding America’s healthcare payments system into something that actually works for providers, payors, and patients,” Fathom co-founder and CEO Andrew Lockhart said. “With inflation and severe staffing shortages driving up costs at a time when revenues are declining, automation has become a critical lever in ensuring the financial sustainability of our health system. This financing will enable us to radically expand the number of specialties and health systems we support.”

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