Nym Health, an Israeli startup developing an AI-powered medical coding platform, has secured $25 million in additional funding. The round was led by Addition, who joins current investors GV, Dynamic Loop Capital, Lightspeed, Tiger Global, and Bessemer Venture Partners.
Seeing increased demand to help solve COVID challenges
In Israel, citizens enjoy National Health Insurance, enabling them to easily seek medical care. However, as we know, the situation in the U.S. is a bit different, and more complicated. Every visit at the doctor’s office or treatment at the hospital (even for diagnostics) requires generating separate code for every medical related payment. This helps enable insurance companies to properly assess risk and pay for medical services. Behind this convoluted payment system are thousands of human representatives, which often work at a slower pace and are the cause for many errors in the process, further slowing it down. This leads to defaulted and delayed payments, risk in accuracy of insurance claim processes, and painfully slows down the actual payment for service.
According to Nym, its clinical language understanding (CLU) engine performs better than human coding and does so within seconds and with zero human intervention. The Nym engine tracks patient visits and processes patient charts, including highly individualized doctors’ notes. Relevant codes are assigned to the patient chart and sent back to providers or RCM companies in less than five seconds — compared to the traditional five-to nine-day process involved when coding is entered manually.
The HealthTech company notes that human coders’ accuracy rate sits at only 70%, whereas the Nym Health system provides accurate service 98% of the time. This, as mentioned, is done not through Deep Learning or ML algorithms, but rather with Nym’s CLU engine -- the team inputs advanced language rules to better understand the content of a sentence or a specific word.
While chatting with Geektime, Amihai Neiderman, CEO and co-founder at Nym, says that all the capital from the company’s previous round is still waiting in the bank and Nym plans to use it to expand their US operations. So what was the rush to fund again? “What led us to raise additional capital has been rapid growth, increasing demand for our product to help solve COVID challenges, and immense success with existing customers.” Neiderman adds that the round was in high demand among investors, with many of them even increasing their stake in the company.
And if we’re on the COVID subject, which is making a major comeback worldwide, Neiderman notes that many MedTech startups, including Nym, saw increased demand for their products because the pandemic highlighted the need for a remote, digital solution -- which can only be provided by advanced technology,” says Neiderman.
“COVID has shown provider organizations that solely relying on people to perform business critical work is unsustainable. We saw demand for our platform surge amid the global pandemic, when hospitals and urgent care centers across the US found they needed to work faster, smarter and more efficiently under the most challenging of circumstances,” said Nym Health CEO Amihai Neiderman. “We are thrilled to have Addition join us and work alongside all of our investors to aggressively grow and scale Nym, leveraging our clinical language understanding engine to revolutionize the medical billing code process.”
Nym Health was founded in 2018 by CEO Amichai Neiderman and CTO Adam Rimon, both veterans of the prestigious 8200 unit. The company has 54 employees and has raised $47 million to date. Nym reports that the capital will be used to further develop its core product and expand its general product offering.