Fathom, a leader in autonomous medical coding, has announced a strategic investment from CVS Health Ventures, the venture capital arm of CVS Health, signaling increasing demand for enterprise AI solutions that enhance financial and operational efficiency in revenue cycle management.
The investment underscores the growing adoption of AI in revenue cycle management, a sector that has reached a point of demonstrable value. This aligns with CVS Health’s broader commitment to partnering with providers. A survey conducted by Bain & Company and KLAS Research in 2025 identified revenue cycle management as a top priority for health IT investment. Furthermore, executives at a Health Management Academy briefing in December 2025 discussed the tangible return on investment (ROI) achieved through implementing autonomous coding, adding to a growing number of healthcare organizations, including both health systems and payers, adopting Fathom’s platform.
Carter Prince, Partner at CVS Health Ventures, stated, “Fathom is already delivering real, measurable ROI at a time when the entire ecosystem is facing significant cost pressures. We believe Fathom’s accuracy has potential to become a trusted, consistent, and neutral representation of the care delivered, creating new opportunities to reimagine and strengthen payer-provider relationships.”
Fathom’s platform is distinguished by its multi-specialty approach, allowing health systems to deploy autonomous coding with over 90% successful automation rates across various departments simultaneously. This contrasts with traditional, department-by-department AI rollouts that are often slow and resource-intensive. This system-wide implementation model is designed to provide rapid, low-effort ROI and immediate operating margin impact.
Andrew Lockhart, CEO of Fathom, commented on the development: “By increasing efficiency through higher coding accuracy and consistency, we are not only improving patient and provider experience of care, we’re proving that AI can be a true catalyst for financial performance at enterprise scale. 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.”
Fathom’s performance has been recognized, including its designation as the #1 solution for Reducing the Cost of Care in the 2025 KLAS Emerging Solutions Top 20 Report. This followed a 95.5*/100 overall performance score in KLAS Research’s inaugural autonomous coding report, “Autonomous Coding 2025: A Promising Start for an Early Market” (August 2025; *limited data). An earlier KLAS Emerging Company Spotlight report in September 2024 noted that 100%* of interviewed customers expressed the highest level of satisfaction and validated Fathom’s 90%+* automation rates at high accuracy. Fathom’s existing investors include 8VC, Alkeon Capital, Cedars-Sinai, Founders Fund, GV, Lightspeed Venture Partners, and Tarsadia.
