The startup wants hospitals, healthcare providers and insurers to agree on accurate medical billing before claims are submitted.
Charta Health has raised $55 million in a Series B led by Insight Partners, bringing its total funding to $85 million.
Existing investors Madrona, Bain Capital Ventures and South Park Commons participated alongside QuantumLight.
The company, co-founded by Justin Liu and Scott Morris, develops AI-powered medical chart review software.
Charta reports that its revenue grew tenfold over the previous 12 months.
A Problem Hidden Inside Healthcare Billing
Medical records contain clinical notes, test results, diagnoses and treatment documentation.
Before a provider submits a claim to an insurer, this information must be translated into billing codes and checked for accuracy.
Errors can lead to denied claims, payment disputes and expensive administrative reviews.
Charta uses AI to examine medical documentation and identify inconsistencies between clinical records and the claims being prepared.
Its platform is designed to help both providers and insurers work from a consistent interpretation of medical records.
Moving From Disputes to Prevention
Charta is expanding through products targeting both sides of healthcare billing.
The company's stated objective is to reduce unnecessary claims disputes before they occur, rather than simply making appeals and denials faster.
Customers include American Family Care, Grow Therapy and Pediatric Associates Family of Companies.
The opportunity is significant because billing inefficiency represents a major administrative cost in US healthcare.
But success depends on accuracy, patient-data protection and compatibility with complicated reimbursement systems.
The financing gives Charta capital to expand its technology and enterprise adoption while demonstrating measurable operational improvements for healthcare organizations.
Founders: Justin Liu and Scott Morris. Investors: Insight Partners, Madrona, Bain Capital Ventures, South Park Commons and QuantumLight.