Title: Revolutionizing Healthcare Payments: PayZen Offers Interest-Free Installments to Tackle Rising Medical Debt
The skyrocketing cost of healthcare in the U.S. has put immense financial strain on patients, with out-of-pocket expenses now making up 35% of hospitals' and doctors' revenue, up from just 5% two decades ago. This has resulted in a staggering $220 billion in medical debt, according to KFF estimates.
Enter PayZen, a five-year-old startup that is disrupting the healthcare payment landscape by allowing patients to pay their bills in interest-free installments over time. This innovative approach, branded as "care now, pay later," has gained significant traction among consumers, leading to a six-fold revenue increase in the past two years.
Recently, PayZen secured a $23 million Series B funding round led by NEA, along with a $200 million credit facility from Viola Credit and insurance companies. This valuation places the company at over $200 million, showcasing its rapid growth and potential in the market.
By partnering with healthcare providers, PayZen has not only helped patients manage their medical expenses but has also increased collection rates for providers by 35%. The integration of PayZen's services into patients' medical record portals, such as Epic's MyChart, sets it apart from competitors like Clear Balance and Access One, who still rely on traditional call center operations.
With over 60 health systems on board, including major players like Geisinger and Common Spirit, PayZen is making healthcare more accessible and affordable for all patients. Additionally, the company's introduction of a pre-care card and utilization of data and AI to assist with financial assistance qualification showcase its commitment to improving the healthcare payment experience.
PayZen's founder, Itzik Cohen, believes in the positive impact the company is making on society, stating, "We go to sleep every night knowing that we're making a good impact on the world." Through its innovative approach to healthcare payments, PayZen is not only addressing the growing issue of medical debt but also revolutionizing the way patients and providers interact in the healthcare space.