CARY — WhiteHatAI, an artificial intelligence (AI) startup targeting medical fraud and errors, has been acquired by Atlanta-based digital health company Sharecare.

The Cary-based company has developed its proprietary AI-drive platform, the Centaur System, to extract unstructured clinical data from charts to prevent fraud, waste, and abuse in healthcare payments.

Financial terms of the deal were not disclosed.

“Fraud, waste and abuse in our healthcare system is already a $900 billion problem, which – prior to the pandemic – was expected to increase 6.5 percent annually through 2024; but given the necessity to fast-track claims in the face of COVID-19, this challenge is likely to grow even bigger, faster,” said Jeff Arnold, founder, chairman and CEO of Sharecare, in a statement.

“By acquiring WhiteHatAI and integrating their suite of AI-driven capabilities across our portfolio, we are bringing industry leading innovation to our payer and provider client partners that will help them not simply detect FWA but do so before it occurs, thus increasing efficiency and accuracy throughout healthcare organizations.”

Sharecare, the digital health company that helps people manage all their health in one place, today announced its acquisition of WhiteHatAI, an innovator in artificial intelligence (AI) healthcare payment integrity applications. Named one of the 20 Most Promising Cognitive Solution Providers in 2019 by CIO Review, WhiteHatAI’s technology works in place of or alongside existing claims review software to identify fraud, waste and abuse (FWA) regardless of complexity.

WhiteHatAI marks Sharecare’s 16th acquisition. Over the last several years, the company has introduced a range of services to support payers’ and providers’ workflows – including digital clinical data solutions and medical records management; quality, performance and risk-adjustment tools; and billing contract compliance.

CED Tech Venture profile: Artificial intelligence startup WhiteHatAI targets medical fraud, errors