As medical bankruptcies continue to plague Americans, PayZen has raised an additional $220 million in capital as it tries to expand its “affordability finance” option for customers.
According to a news release released on Tuesday, the investment, which consists of $20 million in equity funding and a $200 million credit facility, will aid PayZen in expanding operations and product development.
According to the company, “PayZen has significantly expanded its existing warehouse facility to meet the growing demand for its goods by healthcare providers.”
This expansion enables the company to significantly improve the financial well-being of millions of U.S. healthcare customers because approximately one in ten Americans suffer from severe medical debt as a result of rising healthcare costs.
A company called PayZen, with headquarters in San Francisco, “pays hospitals upfront for patient invoices and provides patients zero-interest, fee-free payment options,” assisting hospitals in increasing collections and lowering the cost of healthcare.
The new funding round comes at a time when consumer access to digital payment tools, which enable them to pay for care without falling behind or forgoing treatment, has made medical debt—long known as the primary driver of personal bankruptcy—more manageable.
Because of the increased availability and acceptance of specialized lines of credit and buy now, pay later (BNPL) alternatives, the healthcare payment industry is experiencing greater innovation than ever before.
Shannon Burke, senior vice president and general manager for health and wellness at Synchrony, recently stated that improved experience is the unifying thread that leads to better health and financial results when asked how these aspects inspire industry advancements.
“The shift is not only looking at multichannel, both clinical and financial side, but also omnichannel [in the sense of giving] the same experience and the same type of offerings at pre-care, point-of-care, and post-care,” she said, noting that post-pandemic patients’ desire to access care through different channels will become more important.
