New Mountain Capital Invests in SmarterDx to Fuel AI-Driven Revenue Integrity

What You Should Know:

–SmarterDx, Inc. (“SmarterDx” or “the Company”), a leader in clinical AI for revenue integrity and care quality, today announced a strategic investment from New Mountain Capital, LLC (“New Mountain Capital”), a leading growth-oriented investment firm with more than $55 billion in assets under management. 

– This investment will support SmarterDx’s next phase of growth and product innovation, focused on creating value for health systems and enabling them to deliver the best care for patients.

SmarterDx: Advancing Clinical AI for Revenue Integrity and Healthcare Performance

SmarterDx is a physician-founded clinical AI company helping hospitals unlock the full value of care delivered by analyzing 100% of patient records at discharge. Established in 2020 by Drs. Michael Gao and Joshua Geleris, the company has rapidly emerged as a leader in healthcare revenue cycle innovation. Its proprietary platform captures the clinical nuance behind every patient case, enabling hospitals to correct documentation gaps, safeguard revenue integrity, and elevate quality-of-care metrics.

The company’s flagship solution, SmarterPrebill, empowers Clinical Documentation Integrity (CDI) and coding teams to validate every aspect of care prior to billing. By ensuring that the entirety of a patient’s clinical journey is accurately reflected in the record, hospitals can recover millions in earned—but previously missed—revenue, while also improving performance on critical quality indicators. Complementing this, SmarterDenials offers hospitals a faster, more effective path to overturn payer denials and recoup lost revenue.

Backed by a strategic growth investment from New Mountain Capital, SmarterDx is poised to accelerate its technology roadmap. The investment will fuel platform enhancements, development of new solutions, and expansion into adjacent areas of the revenue cycle. Currently delivering a 5:1 ROI from day one, SmarterDx serves more than 40 leading health systems across 180 hospital sites nationwide. Its momentum and impact were further validated by its inclusion in Modern Healthcare’s 2024 “Best in Business” list in the Startups category.

According to Co-Founder and CEO Dr. Michael Gao, “This strategic investment marks a pivotal moment in our journey to scale our AI platform and build new products that help capture hospitals’ differential—whether that’s in earned revenue, care quality, or operational efficiency. At SmarterDx, we believe that the most accurate and complete patient story is not just good documentation practice—it’s an essential data layer that drives every facet of healthcare.”

SmarterDx’s growth reflects a broader shift toward intelligent automation in healthcare operations. By aligning clinical reasoning with administrative processes, the platform ensures that hospitals are both clinically sound and financially sustainable. The company’s approach demonstrates how AI can bridge the gap between frontline care delivery and back-end revenue realization—creating a more efficient, transparent, and resilient healthcare system.

The transaction is expected to close in the second quarter of this year, pending customary regulatory approvals. Cooley LLP and J.P. Morgan Securities LLC served as legal and financial advisors to SmarterDx, while Ropes & Gray LLP advised New Mountain Capital.