Healthcare fintech Paytient raises $40.5 million
Missouri-based healthcare fintech Paytient announced it secured $40.5 million in Series B funding, bringing the company’s total raise to $63 million.
The funds include $33 million in equity from new and existing investors and $7.5 million in debt from Silicon Valley Bank.
Mercato Partners Traverse Fund led the round with participation from Bertelsmann Investments, with Mercato’s CEO, Joe Kaiser, on Paytient’s board and Bertelsmann’s Thorsten Wirkes in as an observer.
Existing investors included Left Lane Capital, Commerce Bank, Box Group, Felicis Ventures, Lightbank, Lachy Groom, Crossbeam Ventures, Inspired Capital and Cultivation Capital.
The financing will help the healthcare payment company to increase growth and product development in 2023.
WHAT THEY DO
Paytient works with employers, insurance companies and health systems to offer employees and members an interest-free line of credit. Using a Paytient Visa card, the employee or member can pay their healthcare provider in full, and then repay Paytient according to a payment plan selected on the payment assistance provider’s app.
“Fundamentally, we believe the healthcare journey deserves its own financial products that enable equitable access to care,” Brian Whorley, co-founder and CEO of Paytient, said in a statement. “Our platform empowers patients to control when and how they pay medical expenses in a way that is good for their own well-being, and as historical inflation grips the market, this addresses a pressing need for employers and providers as well.”
MARKET IMAGE
Health care affordability is a significant concern for Americans. Many people are frustrated by the costs associated with health coverage, and the main reason many individuals give for not obtaining health insurance is the perceived cost.
Other health technology companies developing ways to reduce cost-related challenges include healthcare fintech PayZen, which presents a “care now, pay later” model.
PayZen pays the providers for the patient’s invoices, and then the company uses AI to create individualized repayment plans. The startup works with health systems to integrate its platform into providers’ revenue cycle management systems.
Another payment assistance company is the intelligent platform for patient billing and engagement Look.
