Charta Health Raises $22 Million Series A to Rebuild the Backbone of Healthcare Operations with AI

New funding allows Charta to address the $300B annual revenue leakage issue in healthcare amid a growing regulatory push for tighter audits

SAN FRANCISCO, CA, UNITED STATES, July 22, 2025 /EINPresswire.com/ -- Charta Health, an AI-powered platform that automates and optimizes medical billing and clinical documentation workflows, today announced a $22 million Series A funding round. The round was led by Bain Capital Ventures, with participation from Madrona, SV Angel, Refract Ventures, and South Park Commons.

Each year, the U.S. healthcare system loses over $300 billion due to billing errors, undercoding, and preventable claim denials. Much of this stems from a slow, manual review process, where the majority of patient charts are not reviewed before claims are submitted. This exposes providers to revenue loss, compliance risk, and administrative waste – challenges Charta Health is addressing through applied AI.

Charta’s platform performs real-time, AI-powered reviews of every chart before submission - flagging missed codes, identifying patient care gaps, and improving revenue integrity. Today, the platform is used by healthcare organizations across 43 states to increase revenue and patient care quality while reducing administrative burden. Customers report up to a 15.2% increase in RVUs per encounter, resulting in significant revenue.

“Historically, the complexity and fragmentation of healthcare infrastructure made it nearly impossible to apply AI meaningfully at scale,” said Justin Liu, co-founder and CEO of Charta Health. “Today, we can layer advanced AI directly onto any EMR, surfacing patient-level insights: clinical, financial, and operational - in real time, and unlocking automation without disrupting workflows or overburdening clinicians.”

By leveraging advanced AI algorithms, Charta automates the traditionally manual process of chart review, improving patient care quality, reducing administrative overhead, and optimizing financial performance. Core features include:

AI-Powered Revenue Optimization
Charta's advanced algorithms conduct a pre-bill review of every chart, identifying missed coding opportunities while eliminating potential denials and compliance risks at the source.

Automated, Custom Compliance Assurance
The platform audits 100% of charts against client-specific billing and clinical guidelines. By automating these compliance checks, Charta helps healthcare organizations avoid costly clawbacks, meet payer requirements, and improve care quality - at a fraction of the cost of traditional audits.

End-to-End Chart Review Automation
By replacing manual chart review with AI-driven automation, Charta drastically reduces administrative overhead, accelerates billing workflows, and ensures consistent, audit-ready documentation across the entire revenue cycle.

“Charta Health has completely changed the working capabilities of our clinical management team, which is huge,” said Micki Roget, Chief Operating Officer of KidsCare Home Health. “Nobody becomes a therapist to sit in an office doing workflow. Charta gives that time back.”

The funding follows a string of developments signaling broader momentum for AI adoption in healthcare. CMS has widened its Medicare Advantage audit program, signaling increased scrutiny of billing practices, while new federal guidance from HHS and CMS outlines frameworks for responsible AI use in administrative systems. Together, these shifts are laying the groundwork for a new phase of operational automation across the healthcare sector.

“We led Charta’s seed round because they were uniquely positioned to tackle one of healthcare’s most costly, entrenched problems,” said Aaref Hilaly, Partner at Bain Capital Ventures. “Since then, the team has moved with urgency and precision, building a product that delivers real ROI at scale. With the infrastructure and regulatory landscape now aligned for AI-driven transformation, we’re doubling down. Charta has the right architecture, the right momentum, and most importantly, the right team to lead this shift.”

Founded by Justin Liu and Scott Morris, former engineers at Rockset (acquired by OpenAI), Charta applies advanced AI infrastructure to long-standing inefficiencies in healthcare operations. Both founders, along with members of the AI research and engineering teams, hold Certified Professional Coder (CPC) credentials, reflecting the team’s commitment to understanding the complexity of clinical documentation and medical billing.

The Series A funding will be used to scale product development, grow Charta’s engineering and go-to-market teams, as well as accelerate enterprise integrations with leading providers and payers nationwide.

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About Charta Health

Charta Health is an AI-powered platform that optimizes medical billing and clinical documentation workflows. By performing pre-bill reviews on every chart, Charta Health identifies missed coding opportunities, prevents claim denials, and ensures compliance with clinical and billing standards. Customers report up to a 15.2% increase in RVUs per encounter.

Charta is backed by leading investors such as Bain Capital Ventures, Madrona, and more. To learn more, visit www.chartahealth.com.

Kamila Khasanova
On Top Strategy
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