Healthcare costs in the U.S. have been steadily increasing, with patients now shouldering a larger portion of the burden. Two decades ago, patient fees only made up 5% of hospitals’ and doctors’ revenue, but by 2017, that number had risen to 35% (source).
This shift has resulted in a significant amount of medical debt for U.S. citizens, totaling at least $220 billion according to estimates from KFF (source).
To address the issue of mounting medical debt, PayZen, a five-year-old startup, offers a solution that allows patients to pay their bills in interest and fee-free installments over time, making healthcare more affordable.
PayZen has experienced significant growth, with revenue increasing six-fold each year over the past two years. This growth led to a successful $32 million Series B funding round led by NEA and supported by existing investors like 7WireVentures, Signal Fire, and Viola Ventures.
Since integrating with PayZen, healthcare providers have seen a 35% increase in their collections rate, benefiting both patients and healthcare systems. PayZen’s founder, Itzik Cohen, highlights the company’s positive impact on the healthcare industry.
While PayZen has faced challenges in convincing healthcare providers to adopt their “care now, pay later” model, the company remains focused on integrating their solution directly into patients’ medical record portals, giving them a competitive edge.
Despite competition in the industry, PayZen stands out as the only fintech company offering medical loans integrated into patient portals like Epic’s MyChart, distinguishing it from other providers like Clear Balance and Access One.
Currently, PayZen partners with over 60 health systems, including prominent names like Geisinger and Common Spirit, to offer their services to a wide range of patients. In addition to post-care loans, PayZen has introduced a pre-care card to assist patients in paying deposits before procedures.
By leveraging data and AI, PayZen helps health systems identify patients eligible for government financial assistance, showcasing the company’s commitment to making healthcare more accessible and affordable for all.
With a focus on social impact, PayZen prides itself on its mission-driven approach, attracting employees who are passionate about making a positive difference in the world.
