Charting a New Era: How Charta Health is Transforming Medical Chart Review

After OpenAI acquired their last startup, Charta’s founders became certified medical coders to build a category-defining compliance automation platform.

“Medical coder” is not usually high on the list of career choices for two talented engineers with experience at a leading startup that OpenAI acquired. But that's what Justin Liu and Scott Morris did in 2023, as they thought about how best to apply AI to the most significant problems in healthcare. That early decision, combined with their intellect and intensity, led to the creation of what became Charta Health. It’s also what first drew us to them when we met at pre-seed in 2023.

Since then, Charta has evolved into the leading compliance automation platform for provider groups. The starting point is a transformational AI application in chart review. Whereas traditionally only 1% of charts could be reviewed post billing, with Charta 100% of charts are reviewed pre-billing. That delivers an 11% revenue uplift and an 11:1 ROI by improving revenue integrity, enhancing patient care, and reducing audit and compliance costs.

Charta is stepping in when providers need it most. With nearly $1 trillion in Medicaid cuts looming over the next decade, and federal and state funding reductions tightening margins, stricter eligibility rules and documentation requirements are adding pressure on provider groups. Providers are focused on streamlining operations and improving coding and revenue processes, and we believe Charta is built to meet that need.

Meet the Founder: Justin Liu is a Technical CEO with Product Vision & GTM Chops

Applying Technical Expertise to Product Building

Justin and Scott have worked together since 2020, when Scott teamed up with Justin as engineering and product counterparts at Rockset (acquired by OpenAI). In addition to being colleagues-turned-co-founders, they each dedicated a year to securing the Certified Professional Coder credential, which enables them to build for medical use cases with regulatory cover and garner healthcare field endorsement.

Upon first meeting Justin and Scott, we were immediately impressed by both their scrappy GTM execution and and the strong latent demand for what they were building. By simply cold outbounding hundreds of practices over a few weeks, they secured several six-figure contracts.

Customers consistently rave about their pace of product development. One large primary care group told us, “During our first meeting, we shared our struggle with chart review and audit. By the second meeting, Justin and Scott had already built a prototype addressing our issues — something I didn’t know was possible in six days.”

Charting a Better Path

AI has transformed the way we think about work and expands our capacity to accomplish more. Whether it’s managing thousands of customer support tickets, combing through vast legal databases or designing customized learning modules for students, AI is breaking barriers across industries and achieving tasks that were once out of reach.

These same constraints are amplified in healthcare, with increased administrative burden on providers, ever-changing payer requirements and rising labor costs. For context, a 2024 study shared by the American Hospital Association cites admin costs as more than 40 percent of total hospital costs incurred in delivering care to patients.

Providers, already stretched thin after back-to-back patient visits, code visits at the end of a busy day, relying on imperfect recall of a patient’s full medical history. Before Charta, audit teams reviewed coded charts to catch errors. However, human auditors can only review 1% of charts, typically months after the fact. As a result, 99% of errors go unnoticed—and even when flagged, meaningful corrections are rarely made. Building these audit teams also requires months of training.

Charta changes this dynamic entirely by leveraging AI to ingest 100% of charts in real time, reviewing visit notes, labs, and medical history against coding and audit protocols specific to each practice. This approach identifies missed revenue opportunities from incorrect coding, ensures compliance with payer rules, prevents costly clawbacks, and significantly reduces administrative burden on audit teams.

Audit and compliance are just the tip of the iceberg. Charta can redefine how charting is done, bringing time and clarity back to providers, and become a trust layer between the entire healthcare ecosystem of patients, providers and payers. AI will shape the future of healthcare across tech stacks, billing cycles and administrative operations. We’re thrilled to partner with Charta who is leading the change.