CHARLOTTE, N.C.–(BUSINESS WIRE)–Frontier Capital, a growth equity firm focused exclusively on software and technology-enabled business services companies, today announced a $16 million growth investment in Aviacode.
“Frontier’s investment will help us to provide that technology to an even greater number of healthcare organizations. Additionally, we’ll be able to expand our sales and marketing efforts to better respond to the need for our services.”
Aviacode, a Salt Lake City, Utah-based provider of software-enabled medical coding services to the healthcare industry, will use the investment to further develop and market both its network of certified medical coders and its software-as-a-service (SaaS) platform. Aviacode’s offerings are meeting the growing demand for solutions that facilitate medical coding and auditing for physician groups, facilities and surgical centers. This is especially beneficial as the healthcare industry transitions to the International Classification of Diseases, Revision 10 (ICD-10) coding system.
“Aviacode is an innovative medical coding software and services company that is solving one of the healthcare industry’s largest problems,” said Scott Hoch, principal, Frontier Capital. “As medical coding becomes increasingly complex with ICD-10, and other regulatory and compliance mandates drive a shortage of qualified coders, Aviacode has the opportunity to provide both innovative web-based coding software and outsourced coding solutions for its provider customers.”
“Aviacode is a perfect example of the type of company in which Frontier Capital invests: a high growth software-as-a-service platform with a strong leadership team in a large and growing industry,” Hoch added.
What is ICD-10?
The compliance deadline to transition to ICD-10, which contains more than 140,000 codes—19 times the number of codes in the outdated ICD-9—is looming for healthcare professionals nationwide. ICD-10 reflects the latest medical knowledge and allows for more specificity in describing conditions and procedures, and is also a step toward the transition to quality and value-based reimbursement models.
“With the exponential increase in codes, human coders simply must have the assistance of software-enabled coding services,” said Lane Monson, chief executive officer, Aviacode. “Frontier’s investment will help us to provide that technology to an even greater number of healthcare organizations. Additionally, we’ll be able to expand our sales and marketing efforts to better respond to the need for our services.”