Healthcare AI company Commure has banked $70 million in fresh funding, reaching a $7 billion valuation.
General Catalyst led the funding round, which also included participation from Sequoia Capital, Morgan Stanley, and Kirkland & Ellis, according to an announcement. Commure said that it will use the funds to scale its platform and continue building out its technology.
The company offers AI tools and agents that embed in the workflow of health systems and providers. Its tech is largely focused on simplifying administrative work, which Commure said consumes about $1 trillion each year across the country.
Its revenue cycle management tool and advanced clinical workflow tool are deployed across more than 500 organizations that include more than 3,000 sites of care, Commure said in the announcement. Among those are more than 130 of the largest health systems in the country, such as Tenet Healthcare and HCA Healthcare.
"For 30 years, healthcare was told software would fix administrative work. It didn't, because software could not actually do the work: the calls, the notes, the codes, the claims, the denials and the appeals," said Tanay Tandon, CEO of Commure, in the announcement. "AI can. We are already performing this work, from specialty clinics to the country's largest health systems."
"With this round, we can meet the demand to run it everywhere," Tandon continued.
With the additional investment, Commure said it plans to grow its revenue cycle and practice management tools to specialty practices, hospitals and integrated delivery networks. It has a goal of replacing the more patchwork system of vendors and platforms that have so far been the norm in healthcare.
It also said it plans to enhance the platform's "shared intelligence layer," bolstering its ability to manage payer rules, specialty coding and other priorities missed by less specialized models. The company is also looking to grow globally.
“Healthcare is one of the largest sectors of economies worldwide and one of the most important to rebuild with AI,” said Hemant Taneja, CEO of General Catalyst, in the press release. “Commure is doing it not as a feature or co-pilot, but as a system of agents completing administrative and clinical work in fundamentally modern ways. This is a generational business with the opportunity to dramatically impact the cost of care.”