Why We Invested in Candid Health: Powering Modern Infrastructure for a More Efficient Healthcare System

Sixth Street Growth is excited to be leading a $120 million Series D financing in Candid Health (“Candid”), the autonomous revenue cycle platform for healthcare providers. Candid embodies the qualities that we search for in our partner companies: a massive market that has been underserved by legacy players, a mission-critical product deeply embedded in customer workflows, and founders with deep technical expertise and an unwavering focus on customer outcomes.

Every year, hundreds of thousands of independent physician practices across the U.S. perform the same ritual. They deliver care, submit a claim, and then fight to get paid. That fight has only been getting harder, with nearly 3 in 4 providers reporting that claim denials are increasing, and over 40% now saying that more than a tenth of their claims are denied outright.¹ Much of what is owed is never recovered. More than 50% of denied claims² are never reworked, resulting in practices forfeiting approximately 4-5% of net revenue.³

We believe Candid’s modern medical payments platform is purpose-built to revolutionize the healthcare revenue cycle. Candid’s platform combines deep revenue cycle expertise with agentic AI at scale to ensure that providers are paid accurately and efficiently, so they can focus on what they do best: delivering high-quality, affordable, and accessible care to patients.

A large, underserved market with structural tailwinds

Healthcare revenue cycle management is a $280 billion industry. Providers have poured money into legacy software, outsourced billing services, and clearinghouses that have not served them effectively.⁴ With rising complexity across payor rules, documentation requirements, prior authorization workflows, and denial logic, the traditional revenue cycle stack has struggled to keep pace.

Still, providers have had no choice but to continue to invest significant resources in revenue cycle operations, while still losing meaningful revenue to denials, underpayments, and uncollected balances. The pressure on providers isn’t stopping as denial complexity keeps rising, administrative labor keeps getting more expensive, and reimbursement pressure makes every basis point compression in collection rates existential for practices.⁵

We believe these structural tailwinds create a compelling opportunity for a new category of revenue cycle infrastructure – one that leverages agentic-powered automation to prevent reimbursement issues upstream rather than managing them after the fact with outsourced labor.

Attacking the root cause, not the symptom

Most revenue cycle vendors are in the business of denial remediation, catching errors after claims bounce back and putting large teams of human billing specialists to work on appeals. Candid took the opposite approach by engineering claims correctly at submission, ensuring they don’t get denied in the first place.

To achieve this level of performance, Candid has spent years reverse-engineering the billing requirements of more than a thousand U.S. payors (each with its own claim formats, coding preferences, and adjudication logic) and encoding them into an end-to-end rules engine that prepares, submits, and edits claims fully autonomously. As a byproduct of this effort, Candid has amassed a comprehensive knowledge graph: a unified, continuously enriched model of provider rosters, fee schedules, charge rules, and payor adjudication behavior that turns billing chaos into structured, query-able infrastructure. This is in sharp contrast to legacy incumbent solutions who lack the integrated systems to close the data feedback loop.

Importantly, this knowledge graph serves as the context scaffolding for agentic revenue cycle management. Candid’s AI agents leverage its robust data foundation to resolve eligibility, coding, and appeals workflows with maximum efficacy. Most importantly, the richness of the system compounds, with every claim processed feeding back into the rules corpus, creating an information flywheel.

Candid’s approach has enabled customers to achieve best-in-class KPIs including 95-99% first-pass “touchless” claim resolution, under-20-days average time to payment, and approximately 40% less manual work in cost-to-collect.⁶ Quite simply, Candid’s customers collect more of what they are owed and get paid faster.

Founder-operator fit as a structural competitive advantage

Co-founders Nick Perry and Doug Proctor are former Palantir data infrastructure specialists. Nick served as Palantir’s Commercial Healthcare Lead and Doug as architect of the enterprise data systems for the U.S. Army. Nick and Doug have applied the first-principles thinking and operational rigor they learned at Palantir to revenue cycle management: immersing in a broken data environment, mapping every failure mode, and building infrastructure to solve root-cause problems rather than features to alleviate symptoms.

During our diligence, customers and partners shared the same observation: Candid has an organization-wide obsession with customer outcomes. That culture of execution and customer focus is exactly what Sixth Street Growth looks for in a partner. We believe Nick and Doug are building the foundational infrastructure layer for the future of healthcare payments.

The results speak for themselves

Candid grew annual contracted run-rate revenue 190% year-over-year in 2025.⁷ The team is now serving more than 200 leading medical groups, MSOs, and digital health companies.

We are proud to partner with Nick, Doug, and the entire Candid team, alongside Oak HC/FT, 8VC, and First Round as they rebuild the backbone of how America’s doctors and healthcare providers get paid.

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¹ Experian Health’s State of Claims Report 2025

² HFMA, Strategies for Proactive Denial Management and Prevention (2025)

³ Huntington Bank, The True Cost of Healthcare Revenue Leakage (2023)

⁴ MGMA Stat Poll (2024), Strategic Improvements in Your RCM to Reduce Your Practice’s Claim Denials

⁵ AMGA, 2024 Medical Group Operations and Finance Survey

⁶ Candid Health, as of April 2026

⁷ Candid Health, as of April 2026