SmarterDx, a New York-based clinical AI company specializing in revenue integrity and care quality, has announced a strategic investment from New Mountain Capital, a growth-oriented investment firm managing over $55 billion in assets. This partnership aims to accelerate SmarterDx’s growth and product innovation, enhancing its ability to support health systems in delivering optimal patient care.​
Founded in 2020 by physicians Dr. Michael Gao and Dr. Joshua Geleris, SmarterDx offers a proprietary AI platform that analyzes 100% of patient discharges to ensure accurate documentation and prevent revenue loss. Its flagship products, SmarterPrebill™ and SmarterDenials™, assist clinical documentation and coding teams in validating patient care details and efficiently overturning claim denials, respectively.​
With this investment, SmarterDx plans to enhance its technology and AI capabilities, accelerate its product roadmap, and develop complementary solutions. Currently, the company’s platform is utilized by over 40 health systems across 180 hospital sites in the U.S., delivering a reported 5:1 return on investment from day one.
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“This strategic investment marks a pivotal moment in our journey to scale our AI platform and build new products that further helps capture hospitals’ differential – whether that’s in earned revenue, care quality, or operational efficiency,” said Dr. Michael Gao, Co-Founder and CEO of SmarterDx. “At SmarterDx, we believe that the most accurate and complete patient story is not just good documentation practice – it is an essential data layer that drives all aspects of healthcare. We are looking forward to having a partner in New Mountain Capital that shares our belief and will enable us to further strengthen our capabilities to support health systems and their patients.”
The transaction is subject to customary regulatory approvals and is expected to close in the second quarter of this year.​
