Healthcare Fintech PayZen Secures $15M via Series A Round Led by SignalFire

PayZen, which claims to be a “mission-driven” Fintech addressing healthcare affordability, has announced it completed a $15 million Series A round.

SignalFire has reportedly led the Fintech firm’s investment round, along with contributions from Link Ventures and 7wireVentures, as well as existing investors Viola Ventures and Picus Capital, “bringing the total amount raised to $20 million.”

As mentioned in the announcement, medical debt is a $300B problem in the United States; almost 1 in 3 or around 33% of Americans have delayed medical care because of excessive costs. PayZen’s new round of financing will be “used to fix this growing problem and help fuel its mission to help patients “Care Now, Pay Later” (CNPL).”

Funds will be used to “expand the company’s product offering, giving more people access to affordable healthcare payment options,” according to a release.

PayZen’s AI-enabled tech allows hospitals, health systems and large physician groups to “more accurately determine a patient’s unique ability to pay.”

All patients are able to qualify, “never paying any interest or any fees, while providers retain complete flexibility over the program with no administrative burden,” the update noted.

PayZen’s digital platform reportedly works with any healthcare system and “makes the application process seamless for both patients and hospital administrators,” the announcement explained.

The firm intends to invest further in its AI and machine learning tech in order to expand its underwriting capabilities across financial, medical and alternative data sets, “making CNPL a reality for 100% of patients.”

Many of the other market solutions are “designed for elective procedures rather than continuous care, which is an area of healthcare that is often neglected, particularly since the pandemic,” the announcement noted.

PayZen’s CEO and co-founder Itzik Cohen, stated:

“Patient payment responsibility has more than doubled throughout the last two decades, placing a disproportionate burden on Americans who can’t afford large lump sum medical invoices. At PayZen, our mission is to address healthcare affordability for everyone, no matter the stage of care. With this fresh round of capital, we’re excited to improve the quality of more people’s lives, while serving as a trusted technology partner to medical providers across the country.”

As PayZen experiences a growing demand for its tech, the funds will also be used for investments “into its marketing and business development teams.”

The announcement also mentioned that by the end of 2021, in less than a year in business, PayZen is set to have “several major health systems and hospitals signed on to drive affordability for its patients, including PA-based hospital, Geisinger, who saw 82% of patients enroll in programs and payment collection increase by 23% after implementing PayZen’s platform.”

Chris Scoogins, Partner at SignalFire, remarked:

“Medical debt remains the number one source of bankruptcy in the US, and as a result, people are avoiding potentially life-saving care. With PayZen’s zero-interest model, Americans can stop being forced to make the choice between a doctor’s appointment and a rent bill. This technology removes friction on all sides, allowing patients to focus on recovery and hospitals to focus on treatment. We’re thrilled to put our support behind the team and their mission of making healthcare affordable for all.”

As growth continues, Richard Lopez del Rincon has joined the firm to work as its first Chief Revenue Officer, bringing more than 20 years of industry experience in scaling revenue cycle management companies and technologies.

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