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Exclusive: Sift Healthcare collects $20M for medical billing tools

Illustration of a red pen held by a robot hand marking up a medical bill.

Illustration: Gabriella Turrisi/Axios

Revenue cycle management tool provider Sift Healthcare raised a $20 million Series B led by B Capital, CEO Justin Nicols tells Axios exclusively.

Why it matters: Financial strains like ongoing health worker shortages are squeezing hospital billing and revenue cycle departments.

Zoom in: Previous investors Allos Ventures, First Trust Capital Partners, and Rock River Capital joined the round.

  • Funds will power additional hires and further investments in AI.
  • Nicols foresees Sift looking to raise a Series C sometime in the next 18-24 months.

How it works: The Milwaukee, Wisconsin-based company offers AI-based clinical workflow guidance tools designed to track payment trends, boost accuracy, and avoid clinical denials and write-offs.

Flashback: Sift in 2022 raised a $9 million Series A led by Allos Ventures and First Trust Capital Partners with participation from Rock River Capital Partners and the Winnebago Seed Fund.

What they're saying: Health care organizations can use Sift's tools to pursue past claims that have been denied and to avoid denials in real-time.

  • "Sift sits in the workflow and can help to mitigate denials prospectively, rather than just after the fact," says B Capital principal Nicholas Whitehead.
  • "That's our trojan horse: Being able to predict these things in real time," says Sift's Nicols.

The big picture: Providers cited revenue cycle management as a top priority for 2024 in a fall 2023 Bain & Company and KLAS report.

  • They anticipated investments across a broad set of subsectors including revenue integrity, charge capture, and complex claims.

State of play: Hospitals have a plethora of venture-backed and legacy options when it comes to revenue cycle automation tools as more look toward billing tech to alleviate financial burdens and boost efficiency.

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