KODE Raises $27M in Series B Funding to Transform Medical Coding and Data Management

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Healthcare providers now have instant access to certified coders, transforming management of evolving staffing needs with the newly launched AI-enabled KODE Management Platform

KODE Raises $27M in Series B Funding to Transform Medical Coding and Data Management

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KODE Health (“KODE”), the only on-demand medical coding platform that connects healthcare systems with certified medical coding professionals, today announced that it has raised $27 million in Series B funding led by Noro-Moseley Partners with participation from Mercury, FCA Venture Partners, Epsilon Innovation Fund and 111 West Capital. The new funding will enable KODE to expand its vast network of certified coding professionals and further the development of AI-driven tools that enable hospitals and providers to better respond to workflow fluctuations and manage their coding operations more efficiently and effectively.

Healthcare administrative costs, which include coding expenses, now account for approximately 15 to 30% of total U.S. health care expenditures. Traditional medical coding services are plagued by staffing inefficiencies and bottlenecks. KODE is disrupting the conventional medical coding model through its proprietary platform that enables opportunities for certified coders and drives value to health systems by accelerating collections and reducing staffing costs.

Founded in 2021 industry veterans Brian Dessoy and Brad Sawdon, KODE is the first and only on-demand solution designed to connect healthcare providers to the largest community of medical coding professionals across the U.S. The platform offers its certified community of “Koders” a solution to maximize their professional skill set as well as their income. By combining the latest AI technology with a human-centric approach, KODE is reshaping the healthcare administrative landscape and ensuring better outcomes for revenue cycle leaders and Koders alike.

“KODE was born out of the healthcare industry’s fundamental need for more efficiencies and cost savings across the coding ecosystem, and ultimately, bring together medical coding professionals, and hospital systems through a dynamic, easy-to-use marketplace,” said Brian Dessoy, Co-Founder of KODE Health. “We’re thankful to our investors and partners for their ongoing support of our mission and look forward to continuing to scale.”

“As we enter our next phase of development, KODE is looking to grow beyond our core focus on staffing to develop technology-first solutions leveraging AI and predictive analytics aimed at further transforming revenue cycle management,” said Brad Sawdon, Co-Founder of KODE Health. “This latest capital infusion will allow us to further invest in product development, enhance our existing platform and scale our world-class team of Koders.”

“KODE is addressing one of the most significant yet overlooked obstacles in healthcare—coding inefficiencies that directly impact the financial and operational health of hospital systems,” said Spence McClelland, General Partner at Noro-Moseley Partners. “We’re excited to support Brian and Brad as they continue to revolutionize the medical coding space.”

KODE has undergone significant growth since inception and currently codes over a quarter million medical records a month, all while achieving consistent operational profitability. KODE has a growing customer base of over 5,500 certified coding professionals who have coded over 8 million medical records to date.

“The KODE team is at the forefront of transforming the healthcare operations landscape,” added Adrian Fortino, General Partner at Mercury. “AI adoption and the downward pressure on coding costs will dramatically change how health systems manage revenue cycle in the future. KODE’s proprietary Kode Management platform and Koder marketplace not only benefits healthcare systems but also provides an exceptional network of talented coding professionals to help address the heightened demand for innovative administrative processes for years to come.”

About KODE

KODE is a health-tech company seeking to break the traditional model of medical coding. We've created the first and only on-demand platform that connects hospitals and coders in real-time and leverages AI to optimize a health system’s revenue cycle. For more information, visit kodehealth.com.