By Sri Chandrasekar, Tara Stokes and Jeff Lu.

Point72 Private Investments is excited to be leading a $31M Series B round in Adonis alongside Tina Hoang-To at Kin Ventures. Adonis is building next generation revenue cycle management (RCM) software designed to reduce the significant administrative burden imposed on medical providers in the US.

On a per capita basis, the US far outspends other developed nations on healthcare, but outcomes have not kept pace. Administrative costs are the largest contributor to this discrepancy – the US spent ~$925 per capita on healthcare admin costs in 2021, 75%+ higher than the next highest country (Switzerland) and more than Germany, France, the UK, Spain, and Italy combined. This amounts to over $300B of spend each year in the US that adds nothing to the quality of healthcare delivery but nonetheless drives significantly higher costs of care for patients and consumers.

Much of the blame for this inefficiency can be placed on the massively complex and arcane medical billing practices that dominate healthcare payments in the US – to get compensated for treatment, providers need to provide detailed records of diagnoses and conditions to payers, whose rules and codes change constantly. As a result, providers may rely on dedicated outsourced billing firms, or hire armies of professional billers at a high price.

Adonis was created to address this very problem – helping streamline medical billing processes with the goal of maximizing revenue outcomes and ultimately enabling healthcare providers to deliver the highest form of clinical care.

The company’s end-to-end platform was created to integrate directly with a customer’s existing systems of record, creating a unified data layer to deliver AI-driven insights that could better predict claim denials, provide recommendations, and surface actionable alerts. Adonis aims to help customers improve prioritization, productivity, and revenue capture while automating away many of the manual processes that bog down legacy billing.

We’ve long believed that advancements in AI have the potential to significantly reduce administrative inefficiencies in healthcare. When we met Akash and Aman Magoon, we saw in them a team that we found particularly well-equipped to try and solve the RCM problem – the two brothers are seasoned startup veterans who have spent the last 5 years immersed in the dynamics between payers and providers. Their deep domain expertise and compelling product vision complement their innate drive and ability to execute – we’ve been hugely impressed with Adonis’s commercial traction and the praise they’ve earned from customers so far.

We are very excited to support Akash, Aman, and the entire Adonis team as they work to make the healthcare system better, less expensive, and more accessible for all.

This is not an advertisement nor an offer to sell nor a solicitation of an offer to invest in any entity or other investment vehicle.  The information herein is not intended to be used as a guide to investing or as a source of any specific investment recommendation, and it makes no implied or express recommendation concerning the suitability of an investment for any particular investor.  The opinions, projections and other forward-looking statements are based on assumptions that the authors’ believe to be reasonable but are subject to a wide range of risks and uncertainties, and, therefore, actual outcomes and future events may differ materially from those expressed or implied by such statements.  Point72 Private Investments, LLC or an affiliate may seek to invest in one or more of the companies discussed herein.