The healthcare artificial intelligence startup Candid Health has raised $120 million in a Series D funding round. The round was led by Sixth Street Growth, with participation from Oak HC/FT, 8VC, and Y Combinator. These funds are designated for integrating artificial intelligence into healthcare Revenue Cycle Management (RCM).
The new funding triples the company's valuation compared to its previous Series C round in February 2025. The capital will be used to build the financial infrastructure underpinning the American healthcare system by updating outdated billing systems and implementing AI-driven automation.
The company completely rebuilt its core infrastructure to enable the automation of the entire billing process. Its highly configurable rules engine, combined with AI workflows that learn and evolve over time, proactively identifies routine administrative tasks and reduces associated staff hours.
CEO and co-founder Nick Perry noted that for many years, the healthcare industry suffered from antiquated billing solutions that could not cope with the increasing complexity of healthcare provider organizations. He emphasized: 'We have completely rebuilt the foundation of our company and our financial infrastructure from scratch. This allows us to deliver significant cost savings for our clients while simultaneously increasing their revenue collection, easing the burden on administrative and finance teams through automated workflows.'
Candid Health currently serves over 200 organizations across dozens of medical specialties, including some of the largest and fastest-growing healthcare providers in the country. The company has demonstrated impressive year-over-year growth in annual contract revenue of 190%, alongside maintaining a net revenue of 180% in 2025, indicating strong adoption by large enterprises.
Co-founder and COO Doug Proctor stated in a prepared statement that 'Revenue cycle management continues to be one of the most complex operational challenges facing the healthcare sector, as it directly impacts providers, patients, and ultimately, the entire healthcare ecosystem.' The advent of agentic AI allows healthcare organizations to automate some of the most intricate billing procedures, enabling providers to spend more time on patient care and less on administrative matters.
Investors also highlighted customer satisfaction as a key factor in providing the funding. Sixth Street Growth reported that discussions with nearly 40 clients consistently showed tangible improvements in operational efficiency and financial performance after implementing the platform.
The new investment will help Candid Health continue expanding its AI platform and meet the growing demand from large healthcare providers across the United States. Annually, medical billing in America costs providers $280 billion. The company's goal is to further automate healthcare reimbursement processes by reducing manual intervention, improving collections, and lowering administrative costs for medical institutions.
As healthcare providers increasingly seek technologies that enhance financial outcomes without complicating operations, AI-powered revenue management platforms are attracting growing investor interest. With strong revenue growth, expanding enterprise adoption, and fresh capital, Candid Health positions itself as a key provider of financial infrastructure for the next generation of medical organizations.
