Brellium raises $23M to catch medical billing errors with AI and protect healthcare providers from costly audits

New York-based healthcare AI startup Brellium has raised $23 million in venture funding to help healthcare providers catch medical billing errors, identify gaps in patient care, and avoid costly insurance audits before problems become financial losses. The company announced the funding alongside the launch of CortexLM, an AI system that reviews patient records for documentation errors and compliance risks before claims reach insurers.

The round was led by Left Lane Capital and First Round Capital, with participation from Digital Health Venture Partners. Brellium plans to use the capital to reach more healthcare organizations and extend its technology into additional medical specialties.

The funding announcement comes as healthcare providers face growing scrutiny over billing practices from government agencies and private insurers. A missing detail in a patient’s medical record or an incorrect billing code can trigger a denied insurance claim, repayment demand, or regulatory investigation. For large healthcare organizations processing millions of visits, those mistakes can add up quickly.

Brellium wants to catch those problems before they become expensive.

Its new CortexLM system uses AI to examine clinical notes, compare them against insurance and regulatory requirements, and flag potential errors. Rather than reviewing a small sample of patient records, the software checks every clinical note and recommends corrections before billing.

The company says its platform has already audited more than 22 million patient visits and helped protect nearly $2 billion in healthcare provider revenue from potential repayment demands. Those figures are company-reported.

Brellium wants to catch healthcare billing mistakes before insurers do

Founded in 2021, Brellium is building software that addresses one of healthcare’s less visible but financially significant problems: ensuring medical records accurately reflect the care patients receive and meet the requirements insurers use to approve payments.

Traditional medical chart reviews often rely on staff to manually examine only a fraction of patient records. Brellium’s approach replaces that sampling process with automated reviews across an organization’s entire patient population.

CortexLM takes that approach further by checking documentation against the requirements of individual providers, insurers, and clinical programs. It can flag missing information, incorrect billing codes, and potential care quality issues that might otherwise go unnoticed.

“Providers and payers have been stuck fighting the same fraud, waste, and abuse problem from opposite sides of the table for years,” said Zach Rosen, co-founder and CEO of Brellium. “CortexLM is how we get everyone working from the same standard, so providers can prove the care was right the first time, instead of spending months untangling it after the fact.”

The company points to mental healthcare provider Headspace as an example of the technology in practice.

Before adopting Brellium, Headspace reviewed roughly 2% of its therapy notes through its clinical quality assurance program. After implementing the software, the organization increased that figure to 100%, according to Brellium.

The company says Headspace now reports 99.2% compliance with its documentation standards.

“The biggest benefit of Brellium is peace of mind in ensuring high-quality patient care,” said Jon Kole, Headspace’s medical director.

Brellium is taking an unusual approach to winning customer trust. The company says it will cover repayment costs if an insurer or the Centers for Medicare & Medicaid Services identifies a qualifying problem in a medical record that its software previously cleared. The announcement did not detail the limits or conditions of that guarantee.

Brellium reports serving more than 215,000 healthcare providers across 200 provider groups in all 50 states. Its customers include Gentiva, Maxim Healthcare, Rula, and Headspace.

The latest investment will support its move into cardiology, pain management, and primary care, where billing requirements and clinical documentation can be particularly demanding.

Brellium previously raised $16.7 million in Series A funding in April 2025, backed by First Round Capital, Left Lane Capital, and other investors.

The bigger opportunity goes beyond catching billing mistakes. Healthcare organizations lose time and money correcting rejected claims, responding to audits, and reviewing patient records. Brellium is betting that AI can shift that work to the beginning of the billing process, helping providers address potential problems before insurers find them.

The challenge will be proving that automated reviews consistently catch meaningful errors without creating new ones. For healthcare providers, the value of AI-driven compliance software will depend on its accuracy, the work it saves, and the financial losses it actually prevents.