# Charta Health Financial Model AI-powered pre-bill chart review platform that helps healthcare providers capture missed revenue, prevent claim denials, and achieve 100% audit coverage. - Canonical: https://finamodel.com/startups/charta-health - Excel download: https://finamodel.com/startup-models/charta-health.xlsx - Category: Health-tech - Model type: SaaS ARR / Valuation - Funding round: Seed - Funding: $8.1M - Founded: 2025 - Geography: United States. - Customer: B2B ## About the company Charta Health uses AI for pre-bill chart review, helping providers capture missed revenue, prevent claim denials, and achieve comprehensive audit coverage. It sits within revenue-cycle workflows where chart volume and accuracy directly affect customer value. The commercial model is likely enterprise SaaS with pricing tied to charts processed or volume tiers. That makes it an embedded healthcare-AI platform whose growth is driven by both customer wins and usage within each provider. The model should forecast provider logos, charts per customer, revenue per chart or contracted ACV, deployment timing, expansion, and churn. AI-processing, integration, implementation, and customer-success costs should be modelled alongside usage revenue. ## What's included - 5-year monthly revenue build with stage-appropriate growth assumptions - Full P&L, headcount plan, and operating-expense schedule - Cash-flow statement, runway, and burn-rate tracking - Valuation via exit multiple with a DCF cross-check - Returns analysis with MOIC and IRR - Unit economics including CAC, LTV, payback, and cohort retention ## Product & value proposition Three core modules delivered as a single AI platform: 1. **Revenue Discovery** - autonomous pre-bill LLM review of every chart for missed CPT coding and under-coded E/M visits. Claims revenue increase up to 15.2%, average 11%. 2. **Denial Prevention** - pre-submission claim review to surface potential payor denials. Claims identification of 70%+ of denials before submission. 3. **Audit & Compliance** - real-time 100% pre-bill audit coverage against custom billing and clinical requirements. Delivered at less than 1% of the cost of human reviewers. Key differentiators: - White-glove POC delivery within days of receiving sample charts, tailored to customer data formats. - No workflow replacement required - pure upside ROI guarantee. - 100% close rate from POC to signed contract. ## Market - Total spend on chart review: $85 billion/year across US healthcare providers. - Less than 2% of charts currently reviewed - the 98%+ unreviewed share is the addressable opportunity. - No explicit SAM/SOM breakdown in deck. - Human review cost: $80 average / up to $275 per chart; 30–60 minutes per chart. ## Revenue model - Not explicitly stated in deck. No pricing slide. - B2B SaaS / per-chart usage fee: given the "per chart" framing and enterprise customers with high chart volumes, pricing is most likely per-chart processed (usage-based) or a recurring platform fee tied to chart volume tiers. Rationale: competitors in RCM tech (Optum, Waystar) price per claim/chart or as % of revenue captured; Charta's ROI framing ("ROI-guaranteed") implies value-based or per-chart pricing. - Revenue share or success fee model possible given "pure upside" positioning - common in revenue cycle management. - Customers are national-scale enterprise providers (100+ facilities, 2.5M+ telehealth sessions/year), suggesting ACV likely $200K–$1M+ range, consistent with $1.1M annual revenue capture cited for a single customer. ## Traction & metrics All from slide 8: - **Customer 1:** National telehealth provider (virtual urgent/emergent, post-acute) - **12.6% increase in primary care revenue**. - **Customer 2:** Leading national in-person primary care + behavioral health provider with **100+ facilities** - **$1.1M in annual revenue capture**. - **Customer 3:** National remote patient monitoring / chronic care management provider with **2.5M+ telehealth sessions/year** - **100% audit coverage at less than 1% cost** of traditional audit. Sales process metric: - **100% POC-to-contract close rate** (all POCs to date have converted to signed contracts). No ARR, MRR, customer count, churn, or growth rate disclosed. ## Unit economics - Human chart review cost benchmark: avg $80 / up to $275 per chart; 30–60 min per chart. - Given AI-driven automation against $80 avg human cost, Charta's marginal cost per chart is likely low (LLM API cost per chart << $1), implying high gross margins (70–85%+) typical of AI/SaaS. Rationale: standard for LLM-powered B2B SaaS at this stage. ## Competition / moat Not explicitly addressed in deck. Implied moats: - Speed-to-POC (days, not weeks) with custom criteria and data format adaptation. - Clinical + technical credentialing: CEO holds CPC (Certified Professional Coder); CTO from Rockset/OpenAI pedigree; CMO co-founded Carbon Health (150 clinics). - 100% close rate suggests strong product-market fit in early sales. - No incumbent named; the status quo is manual review by degreed physicians/nurses or certified coders. ## Team & funding ask / use of funds **Team:** - Justin Liu, Co-Founder & CEO - CPC-certified; ex-first product hire/Head of Growth at Rockset (acq. by OpenAI); ex-Google cloud security engineer; UC Berkeley CS + Business. - Scott Morris, Co-Founder & CTO - CPC-certified; ex-Head of Product Engineering / founding engineer at Rockset (acq. by OpenAI); Stanford CS (AI concentration). - Caesar Djavaherian, MD, CMO - 20+ years emergency medicine; co-founded Carbon Health (150 clinics nationally); NY-Presbyterian / Weill Cornell. - Tam Pham, VP Healthcare Solutions - 30 years risk adjustment; ex-Agilon Health, Apixio, SCAN Health Plan. --- ## Recommended financial model - **Archetype + why:** Usage-based / per-chart SaaS with enterprise ACV contracts. The business is a B2B AI software platform where revenue scales with charts processed per customer. A **revenue-cycle SaaS model** (ARR-build with usage-based pricing) is most appropriate - tracking new logo adds, charts processed per customer/month, revenue per chart, gross margin, and net revenue retention. A lightweight 3-statement can sit behind the ARR schedule for investor-grade output. - **Forecast horizon & granularity:** 3 years (2025–2027), monthly for Year 1, quarterly for Years 2–3. Rationale: early-stage, sales cycles are enterprise (weeks to months for POC + close), so monthly granularity matters in Year 1. - **Key drivers & assumptions:** | Driver | Seed value | | -- | -- | | Starting customers | 3 (confirmed case studies) | | New logos / quarter | 2–4 | | Avg charts processed per customer / month | 50,000–500,000 (wide range; RPM provider has 2.5M sessions/yr ≈ 208K/mo) | | Price per chart | $0.50–$2.00 | | Revenue uplift per chart (for value-based pricing alt.) | ~$10–$20 of revenue captured per chart, shared at 10–20% | | Gross margin | 70–80% | | ACV per enterprise customer | $250K–$1.5M | | Sales cycle (POC to close) | 30–60 days | | Churn / NRR | 0% gross churn assumed early; NRR 110–130% as chart volume grows | | Headcount ramp | 3–5 hires/quarter (sales, implementation, engineering) | | S&M as % revenue | 20–30% | | R&D as % revenue | 25–35% | | G&A as % revenue | 10–15% | - **Scenarios (Base / Bull / Bear - which variables flex):** - **Bear:** Slower logo adds (1/quarter), lower price per chart ($0.50), charts/customer at low end, longer sales cycles. - **Base:** 2–3 new logos/quarter, $1.00/chart, mid-range chart volumes, gross margin 72%. - **Bull:** 4–5 new logos/quarter, $1.50–2.00/chart, upsell to full suite (revenue + denial + audit), NRR >130%. - **Required sheets / outputs:** 1. **Assumptions** - all drivers in one place, clearly tagged. 2. **ARR Schedule** - new logos, expansions, churn, ending ARR by month/quarter. 3. **Revenue Build** - charts processed × price per chart by customer cohort (or blended ACV approach). 4. **P&L** - gross profit, S&M, R&D, G&A, EBITDA, net income. 5. **Headcount Plan** - by function, tied to opex. 6. **Cash & Runway** - cash burn, months of runway (critical for fundraise context). 7. **KPI Dashboard** - ARR, customers, charts/month, rev per chart, gross margin %, burn multiple. ## Frequently asked questions ### Is the Charta Health financial model free? Yes. The Charta Health model is a free Excel download with live formulas. ### Can I change the assumptions? Yes. The workbook is editable and its live formulas recalculate when assumptions change.