Candid Health has closed a $120 million Series D investment that it will use to expand the capabilities of its AI-powered revenue cycle management (RCM) platform. The financing will also back the company’s broader effort to modernize the financial operations of the U.S. healthcare system. Sixth Street Growth spearheaded the latest investment round, which was also joined by current investment partners Oak HC/FT, 8VC, and Y Combinator.
In fact, Candid Health’s current valuation is triple what its valuation was after the company raised a Series C investment in February 2025 indicating that investors’ confidence is increasing about the company’s solution to automation of one of the key functions in healthcare administration. Health Care Revenue Cycle Market $280 Billion Target
In healthcare revenue cycle management has always been a very difficult and labour-intensive area of work. The complete cycle includes tasks like billing coding processing claims, reimbursement and collection of payments and these steps are vital if any healthcare service provider wishes to be paid for their services. If you’re a health care provider and you want to get your fee you depend on these steps. You also need to get reimbursed for any expenses and collect the payment for services rendered. These are the activities collectively known as your revenue cycle. It is not an easy business to master. And for many health care providers it is still a very complicated and confusing process of managing all of this work through the old-fashioned systems. As for the US alone one could spend $280 billion on the entire revenue cycle management process and still have a lot left.
In the meantime, Candid says AI is a way forward. The company says, it has been seven years since it started overhauling and replacing the core technology that supports hospital billing systems from the ground up. They do not consider the solution as just adding an overlay of AI to some existing systems without solving the problem. On the contrary, Candid has gone all out and built an independent technology stack that is separate from legacy systems and is capable of doing its own functions.
Also Read: Billtrust Launches AI-Powered MCP Server to Bring Live Accounts Receivable Data into Microsoft Copilot and Claude
AI-Native Platform Built for Enterprise Healthcare
Candid Health’s platform serves as the financial system of record for hundreds of healthcare providers across the United States, supporting organizations spanning dozens of medical specialties, including some of the country’s largest and fastest-growing healthcare providers.
Its AI-first architecture combines clinical information, billing records, provider data, and financial workflows into a unified operating model. By bringing these data sources together, the platform enables AI agents and automation tools to process claims, identify billing issues, reduce manual intervention, and improve reimbursement accuracy.
The system also includes a configurable rules engine that automates repetitive billing tasks traditionally handled by revenue cycle teams while tracking any remaining manual work to identify additional opportunities for automation.
Leadership Highlights Long-Term Technology Investment
Nick Perry, Co-founder and CEO of Candid Health, said the company has focused on rebuilding healthcare revenue infrastructure rather than simply enhancing existing systems with AI.
“Candid powers the financial infrastructure for many of the most important and innovative healthcare organizations in the United States,” Perry said.
“Legacy revenue cycle platforms have struggled to keep pace with today’s healthcare environment, while many newer solutions have simply added AI on top of outdated technology. We’ve spent the past seven years rebuilding this infrastructure from the ground up, enabling healthcare providers to reduce administrative costs and improve collections through AI-driven automation.”
Investors Back AI-Driven Revenue Cycle Transformation
Sixth Street Growth said its investment was driven by both Candid Health’s technology platform and strong customer adoption.
Alex Katz, Managing Director at Sixth Street Growth, noted that the firm’s evaluation included extensive discussions with nearly 40 healthcare customers currently using the platform.
“The Candid team has developed a modern technology foundation that supports an agentic transformation of healthcare revenue cycle management,” Katz said.
“Beyond the strength of its AI capabilities and automation platform, what stood out most was the company’s unwavering focus on customer outcomes. Feedback from customers consistently highlighted measurable operational improvements delivered by the platform.”
Growing Adoption Across Healthcare Providers
The funding follows significant commercial momentum for the company.
Candid Health reported:
190% year-over-year annual contracted run-rate revenue growth
180% year-over-year net dollar retention during 2025
Continued expansion among enterprise healthcare organizations nationwide
These growth figures reflect increasing demand from providers seeking alternatives to traditional revenue cycle systems as reimbursement complexity continues to rise.
Advancing Autonomous Healthcare Administration
Doug Proctor, Co-founder and Chief Operating Officer of Candid Health, said improving revenue cycle operations has far-reaching implications beyond administrative efficiency.
“Revenue cycle management is an incredibly challenging problem, but it’s also one of the most important challenges facing healthcare. It affects patients, providers, healthcare organizations, and the broader healthcare system. We’re to work alongside our customers as we build AI-powered capabilities that transform one of healthcare’ privileged s most inefficient operational areas,” Proctor said.
With its new Series D funding, Candid Health plans to continue expanding its AI-native revenue cycle platform, helping healthcare providers automate billing operations, improve reimbursement performance, reduce administrative costs, and modernize the financial infrastructure that supports patient care across the U.S. healthcare system.
