Adonis — a New York-based startup seeking to create better, more reliable revenue outcomes for providers across the country — has gained capital from some major investors since it launched last year.
On Wednesday, the company announced the close of a $17.3 million Series A funding round led by General Catalyst. The round — which brings the startup’s total funding to nearly $23 million — also included investments from Homebrew, Bling Capital and Max Ventures.
Adonis, which is a revenue cycle automation platform purpose-built for healthcare, was named after the Greek god known for youthfulness and renewal.
“When thinking about the existing state of the revenue cycle, we realized there was dire need for refreshed thinking and a new perspective,” said Adonis CEO Akash Magoon in a recent interview. “Adonis was founded as an organization that would take a refreshed approach to solving some of the biggest administrative burdens through a technology-first approach.”
Magoon founded Adonis with his brother Aman, who serves as chief product officer. In their view, the way patients pay for care is broken.
Billing and insurance-related activities represent nearly $1 in every $7 collected, Magoon pointed out. He argued that the critical failures present throughout the healthcare revenue cycle are a result of the operational dysfunction between patients, payers and providers.
Adonis’ mission is to improve this process for providers through automation.
The company’s platform performs various tasks, such as automating the verification of a patient’s insurance data, assembling insurance claims, appealing denied claims and analyzing revenue trends. The platform is also designed to bridge the system-of-record gaps between payers, providers and patients, Magoon explained.
Adonis sells its software to health systems, hospitals, private practices, digital health providers and revenue cycle organizations. Some of its customers include Baptist Health South Florida, ApolloMD and Bicycle Health.
“Our customer base is representative of billions of dollars of claims and impacting revenue outcomes for over 2% of the nation’s providers,” Magoon declared.
The platform’s value to its customers lies in the fact that providers are challenged with having to deal with multiple systems when collecting revenue, he added. Adonis addresses this problem by unifying disparate data, which in turn can create opportunities to maximize revenue for providers, Magoon explained.
Still, Adonis isn’t the only company on the market promising to improve providers’ revenue cycle through automation. It is competing with companies like R1 RCM and Greenway Health. Magoon said that Adonis does a better job of meeting a wide range of customers wherever they are on their revenue cycle management journey, but only time will tell whether the startup is going to emerge as a significant player in the healthcare revenue automation market.
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