The healthcare payments platform Anomaly announced on Tuesday (Oct. 26) that it has raised $17 million in Series A and seed funding.
Led by RRE Ventures — with participation from Link Ventures and existing investors Madrona Venture Group, Declaration Partners and Redesign Health — the funding round will allow Anomaly to expand its team and its market presence, and to invest in product development.
Founded in 2020 and based in New York City, Anomaly works with healthcare payers, claims clearinghouses and providers to identify and prevent payment and billing errors.
“Using advanced machine learning that analyzes billions of medical and pharmacy claims across one of the largest and most diverse datasets, Anomaly streamlines the claims payment experience between payers and providers, reducing friction and ensuring trust and integrity in the process,” the company said in a news release.
Anomaly’s leadership includes data science engineers, healthcare industry veterans, payment integrity experts and leading investors, including the former CEO of UnitedHealthcare’s commercial business, head of engineering of Foursquare and Redesign Health, and the founder of payment analytics company Discovery Health Partners, along with veterans of top health and tech companies like Google and Flatiron Health.
As the release notes, improper healthcare payments and associated costs contribute to more than $300 billion in unnecessary costs each year. It’s an issue that has gotten worse as the cost and complexity of care and billing has grown.
It’s also something patients are taking note of. As detailed in the report “The Payment Cure: How Improving Billing Experiences Impacts Patient Loyalty,” about 63% of consumers will consider switching healthcare providers if they are not satisfied with how they pay and discover the costs connected to their care.
That factor tops other issues that include total expense (38%), lack of a cost estimate before an appointment (38%), a complex billing process (36%) and absence of a payment plan or third-party financing (27%).