Innovaccer CEO Abhinav Shashank was 26 when he left paying customers including Disney and NASA to shift his general data analytics company fully into healthcare. After the decision, Shashank and his cofounders spent four months inside Mercy Medical Center in Des Moines, Iowa, working from the hospital’s IT department and observing why physicians still begin visits by asking patients for their name and date of birth.

Before Innovaccer had built a large sales team, word of the company’s work spread to hospitals in Nebraska, Texas, and California. The 2016 pivot has now helped Innovaccer surpass $200 million in annual recurring revenue, Fortune learned exclusively. The figure is up from roughly $130 million last year.

Innovaccer extracts data from hospital electronic health record systems and insurance claims systems, unifies it, and makes it usable for AI tools and care coordination. That positioning intersects with two powerful trends: federal interoperability mandates under the 21st Century Cures Act, passed the same year Innovaccer pivoted, which have progressively required hospitals to make patient data accessible through standard APIs, and a surge of venture and enterprise investment in healthcare AI tools that depend on clean, unified data to function. The company has raised $675 million in total funding, including a $275 million round last year from B Capital, Danaher Ventures, Generation Investment Management, Kaiser Permanente, and Microsoft’s M12. It works with seven of the top ten U.S. health systems and across 80 million patient records.

The company’s strategy is centered on data infrastructure that connects locked-up electronic health records and insurance claims systems across hospitals. The challenge is structural: Epic Systems and Oracle Health, which acquired Cerner in 2022, together hold a dominant share of the U.S. hospital EHR market, and their systems were not originally designed for seamless cross-vendor data exchange. “Healthcare doesn’t have internet,” Shashank told Fortune. Without that layer, he said, AI companies are “trying to put cars on a road that does not exist.”

U.S. healthcare spending will top $6 trillion this year. By Shashank’s estimate, $1.5 trillion of that amount is administrative waste, including forms, phone calls, and denied claims that do not help patients. Innovaccer customers reported roughly $2.5 billion in savings to federal regulators last year alone, largely from care coordination rather than new hardware.

Gartner also supported the thesis this week by naming Innovaccer a leader in its first-ever healthcare technology Magic Quadrant, ranking the company above Microsoft, Google, AWS, and Salesforce on vision and execution. The recognition places Innovaccer in a competitive set with the largest enterprise technology vendors at a time when health systems are accelerating AI adoption for revenue cycle automation, clinical decision support, and prior authorization—use cases that all require a unified data layer. Early investor Manthan Shah of WestBridge Capital said the firm’s 2016 investment was a bet that “healthcare’s data fragmentation was an infrastructure problem.”

This story was originally featured on Fortune.com.