Fathom (Fathom Health), a leader in autonomous medical coding, has secured a strategic investment from CVS Health Ventures, the venture capital arm of CVS Health.
The financial terms of the investment were not disclosed.
The funding reflects growing demand from both payers and providers for enterprise AI that delivers measurable financial and operational impact across revenue cycle management.
Fathom Health has raised more than $60 million in venture capital funding to date, from investors, including 8VC, Alkeon Capital, Cedars-Sinai, CVS Health Ventures, Founders Fund, GV (formerly Google Ventures), Lightspeed Venture Partners, and Tarsadia.
“CFOs and revenue cycle leaders across the country are demanding real ROI stories from AI, and autonomous coding is delivering. This investment from CVS Health Ventures supports the momentum we’re seeing and accelerates our ability to serve the growing demand from providers and health plans nationwide,” said Andrew Lockhart, CEO of Fathom.
“Fathom is already delivering real, measurable ROI at a time when the entire ecosystem is facing significant cost pressures,” said Carter Prince, Partner, CVS Health Ventures. “We believe Fathom’s accuracy has the potential to become a trusted, consistent, and neutral representation of the care delivered, creating new opportunities to reimagine and strengthen payer-provider relationships.”
Digital health companies, including AI-powered medical coding software startups, have secured more than $180 billion in funding to date, according to our recent 2026 Funding Database.
More recently, Luminai, a provider of an AI-powered healthcare workflow automation platform, raised $38 million in a Series B funding round, bringing its total funding to date to $60 million.
In another deal, XCaliber Health, a developer of an agentic operating system purpose-built to reduce administrative burden, cut millions in operational waste, and improve the quality of clinical care delivered to patients, raised $6.5 million in Seed funding.