SmarterDx

High-Level Overview

SmarterDx is a clinical AI company that builds proprietary AI tools to help hospitals analyze 100% of patient charts, capture missed revenue from incomplete documentation, automate denial appeals, and improve care quality metrics.[1][2][3] Serving over 60 health systems and 250+ hospital sites across the U.S., it solves the problem of hospitals leaving millions on the table due to documentation gaps—delivering an average $2-2.5M in net new revenue per 10,000 discharges with a guaranteed 5:1 ROI, while reducing administrative burdens on clinicians.[1][3][5] In 2025, the company was acquired by New Mountain Capital, launching Smarter Technologies to expand AI-driven revenue cycle efficiency.[2][4]

Origin Story

SmarterDx was founded in 2020 by physician-data scientists Dr. Michael Gao (CEO) and Dr. Joshua Geleris (Chief Product and Data Science Officer), both hospitalists with frontline experience.[2][4][5] Gao, while leading AI initiatives as Medical Director at NewYork-Presbyterian, built a proof-of-concept AI that uncovered millions in missed revenue from documentation issues, sparking the idea: if a top hospital struggled, others must too.[1][5] Geleris joined to co-develop the platform amid the pandemic's challenges, pivoting from concurrent CDI to post-discharge analysis (SmarterPrebill™) based on early customer feedback, which accelerated traction and led to rapid growth and the 2025 acquisition.[4]

Core Differentiators

• Physician-First AI Design: Built by clinicians, it processes 30,000+ data points per chart using 2,200+ proprietary algorithms to identify 10,000+ missing diagnoses/procedures with 80% accuracy, citing clinical evidence like labs, vitals, and notes—far surpassing human CDI teams.[1][3][6]
• End-to-End Revenue Recovery: Reviews all charts pre-billing, guarantees 5:1 ROI without upfront costs, automates evidence-based denial appeals (SmarterDenials), and inserts intelligence into physician notes at point-of-care.[1][3][5]
• Seamless Integration and Scale: No workflow disruption, continuous learning from aggregated data, deployed across 250+ sites from Day 1, capturing $2-2.5M net revenue per 10K discharges.[2][3]
• Proven Outcomes: Improves quality scores, frees clinicians from documentation (offloading to AI), and levels the playing field against payers.[1][6]

Role in the Broader Tech Landscape

SmarterDx rides the AI healthcare revolution, targeting revenue cycle management (RCM) inefficiencies amid rising costs, payer scrutiny, and clinician burnout—trends amplified by post-pandemic margin pressures.[1][5] Its timing aligns with hospitals adopting AI for scalability, as manual CDI teams can't handle 100% chart reviews, while regulations demand precise documentation for reimbursement and quality.[3][6] Market forces like value-based care and denial rates favor it, influencing the ecosystem by setting standards for clinician-AI collaboration, reducing administrative overhead (e.g., smaller CDI teams), and enabling sustainable hospital finances to prioritize patient care.[2][4]

Quick Take & Future Outlook

Post-2025 acquisition, SmarterDx (now under Smarter Technologies) will likely expand beyond pre-billing to full RCM orchestration, leveraging New Mountain Capital's resources for national scaling and new AI features like real-time documentation aids.[2][4] Trends in multimodal AI, regulatory tailwinds for AI in billing, and hospital AI mandates will propel growth, potentially transforming it into a category leader. Its physician-led model positions it to evolve influence from revenue recovery to holistic clinical intelligence, bridging care and payment at scale—proving clinicians can rocketship AI solutions that make hospitals thrive.