Tebra Raises $250M to Expand AI-Driven Automation Across Its EHR Platform

Tebra has raised $250 million in new equity and debt financing, led by Hildred, to accelerate its transition from a passive “System of Record” to an active “System of Action” built around AI-driven functionality. The investment is intended to scale automation across clinical documentation, revenue cycle operations, and patient acquisition tools, with a focus on supporting independent practices that are managing rising costs, declining reimbursements, and increasing competition from larger health systems.

Dan Rodrigues, Tebra Founder and CEO, stated that “This investment is a direct mandate to eliminate the ‘squeeze’ on private practices. AI represents the great equalizer for the industry.” The round was oversubscribed, with participation from existing investors including Toba Capital, Transformation Capital, and HLM Venture Partners. Andrew Goldman, Co-Founder at Hildred, noted that Tebra’s platform “doesn’t just digitize records but actually performs work on behalf of the provider”.

The company plans to direct the funding toward three core operational areas. First, Tebra will expand its AI-driven documentation capabilities, including AI Note Assist, which drafts clinical notes automatically. During the second half of the year, AI Note Assist produced more than 500,000 notes and reduced documentation time by an average of 60% per note. The initiative is designed to return meaningful hours to clinicians and ease burnout while increasing efficiency in daily workflows.

Second, Tebra will enhance revenue cycle automation, targeting coding, claims generation, and denial prevention. The company aims to reduce manual errors, shorten accounts receivable timelines, and help practices better manage financial pressures stemming from billing complexity.

Third, the funding will support patient acquisition and experience tools. Tebra reports that its AI Review Replies feature has generated a 45% increase in website clicks for users, and it intends to scale the Tebra Care Connect marketplace as part of its broader effort to help independent practices compete for new patients.

With a profitable core business, 140,000 providers on its platform, and 125 million patient records, Tebra is positioning itself to consolidate a fragmented market. By offering an all-in-one platform intended to replace what it describes as “clunky, fragmented tools” used by legacy systems, the company is seeking to strengthen the operational foundation of independent practices through AI-driven automation.

Click here for the original news story.