By now, it’s a given that AI is reshaping every industry. It tends to matter most where big decisions rest on more documentation than anyone has time to read, and few sectors fit that description better than healthcare. Every claim depends on what a patient’s medical chart supports, and health plans and providers are both bringing AI into the coding, review, and audit work built around those charts. How they do it will go a long way toward deciding whether the technology takes cost out of the system or adds to it.
A 2025 study estimated that hospitals and health systems spent more than $25 billion on claims adjudication in 2023, and that nearly $18 billion of it was potentially wasted on a cycle of denials and appeals. That cycle has worsened as each side adopts its own tools. Insurers use AI to review claims and providers use it to code and appeal them, and because those tools read the same records against different standards, they generate more of both. Taxpayers and consumers ultimately cover the cost.
The underlying problem is much older than AI. Until recently, no one could review every chart. When we first invested in Charta, most provider groups looked at only 1–2% of their charts. This often happened weeks after the visit took place, and health plans relied on samples and audits of their own. With so little of the record checked up front, both sides were left to reconcile it after the claim had already gone out.
Language models make it possible to review all of them, but doing it right requires an in-depth understanding of every step in the process. Every chart can now be checked against coding guidelines, payer rules, and an organization’s own clinical protocols before anything is billed. The opportunity we see is a single standard of accuracy that health plans and providers both work from, applied before the claim rather than worked out afterward.
Charta has been building toward that from the start, and we’re investing again in their $55 million Series B. Insight Partners has led the round, with participation from Madrona, Bain Capital Ventures, South Park Commons, and QuantumLight. This brings Charta’s total funding to $85 million across three rounds in under two years.
When we invested in Charta’s Series A in 2025, they only sold to providers. Its AI reviewed every chart before billing and flagged missed codes and unsupported diagnoses for a person to approve. Revenue has grown 10x over the past year, and customers now include American Family Care, Grow Therapy, and Pediatric Associates Family of Companies.
The Series B also launches Charta for Payers, which runs on the same engine as Charta for Providers. Charta built the payer suite with one of the country’s largest health insurers, and its six products cover risk adjustment coding, audit and validation, and HEDIS quality measures. If a provider and a health plan review a chart with the same engine and the same standard of accuracy, they can agree on it before the claim is submitted. Few AI companies in healthcare have built dedicated products for both sides, and a shared standard depends on serving both.
We met Justin Liu in early 2023, shortly after he left Rockset, and met his co-founder and CTO Scott Morris soon after. Rockset went on to become OpenAI’s first product acquisition, so the two came in with deep experience building data infrastructure. Unlike most engineers coming into healthcare, they spent a year earning Certified Professional Coder credentials and interviewing more than 100 healthcare leaders before building much of anything. Charta now requires its engineering and growth teams to get certified in medical coding as well, which helps explain why the product reads a chart the way an experienced coder or auditor would. Working with Justin, Scott, and the entire Charta team over the past couple of years has only deepened our conviction in their ability to learn quickly, navigate the complexities of healthcare, execute, and build from first principles.
Next, Charta is taking its provider product into new specialties and bringing health plans onto the same standard their provider partners already use. We’re th to keep working with Justin, Scott, and the team, and to have Insight Partners alongside us for this stage. Charta is hiring across the company, and open roles are at chartahealth.com/careers.
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