Healthcare costs continue to grow in the United States, and the proportion of patients who have to pay for themselves is increasing accordingly. Nearly one in three US households has delayed treatment because of costs, according to a 2019 Gallup survey.
Healthcare Fintech startup PayZen is leveraging AI to take on patient medical debt and roll out a series A round to enable patients to receive treatment and pay in installments over the long term. Raised 15 million dollars (about 1.71 billion yen).
The round was led by SignalFire, with new participation by Link Ventures and 7Wire Ventures, as well as existing investors Viola Ventures and Picus Capital. The company raised $ 5 million (about 570 million yen) as seed funds in early 2021, and the cumulative amount of funds raised by this series A has reached 20 million dollars (about 2.28 billion yen). bottom.
PayZen’s “First Treatment / Postpay” solution is available to all patients, allowing patients to pay their treatment costs in installments over time with no fees or interest rates. The underlying artificial intelligence (AI) technology of the platform allows hospitals to leverage patient data to determine patient-specific payment plans while keeping management costs down.
PayZen was founded in 2019 by FinTech veterans Ariel Rosenthal, Itzik Cohen and Tobias Mezge. Cohen, now CEO of PayZen, was CEO of Beyond Finance, a consumer debt fintech.
In an interview with TechCrunch, Cohen said patient out-of-pocket costs have doubled in the last decade and are expected to double in the next decade.
“Because (the founding team) was from the fintech industry, for example, in e-commerce with’pre-purchase and post-payment (BNPL)’, innovation and increased credit will enable people to buy more expensive products. So I thought that the medical institutions that are taking on more and more billing work from patients may be having a hard time, and they are also forced into a bad situation. “It will happen,” says Cohen.
Patients who use the PayZen plan do not have interest rates, so medical institutions can keep these costs in their books. Cohen said he reversed the assessment process and increased payment compliance by prioritizing plans tailored to patients and their financial situation.
Philadelphia-based Geisinger Hospital says payment recovery has improved by 23% since the introduction of PayZen. Cohen added that the average operating margin of most major healthcare institutions in the United States is very low at 1%, and the industry is suffering from a shortage of talent.
Less than a year old, the startup plans to announce a major product expansion in January 2022.
To meet growing needs, PayZen says it plans to grow its current 35-person team to about 100 employees by the end of 2022.
Image Credit: PayZen
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(Sentence: Anita Ramaswamy, Translation: Aya Nakazato)