US-based revenue cycle automation platform Candid Health has successfully raised $29m in a Series B funding round.

The investment round was led by 8VC and featured contributions from various previous investors, including First Round Capital, BoxGroup and Y Combinator.

The capital injection has increased Candid Health's total funding to date to $47m.

Candid Health aims to simplify medical billing processes, providing a platform that uses automation to address billing challenges such as regulatory changes and the specifics of the claims cycle.

More than 100 companies currently use the platform, which aims to streamline the entire billing workflow from claim submissions to managing receivable accounts, reducing the need for manual interventions and automatically correcting claims.

The company estimates that its key clients achieved first-pass resolution and net collection rates of 95%-99%, ensuring accurate payments from the outset.

Candid Health CEO and co-founder Nick Perry said: “Most medical billing companies focus on resolving issues post-claims submission more efficiently, but we're flipping the model.

“We have been rethinking medical billing from the ground up to automate complexity. This ensures healthcare providers can get paid, on time, and for less cost.”

With the backing of investors, Candid Health's revenue cycle automation platform aims to make significant advancements in transforming healthcare billing practices.

Nourish co-founder Stephanie Liu said: “Candid Health transformed the way we do business.

“We went from a manual process with virtually every claim needing hands-on work to automation that submits claims efficiently and correctly.

“As a fast-growing healthcare provider, technology like this is crucial to our success. Candid Health has helped us achieve best-in-class collection rates while enabling us to deliver better service to our patients.”