A company that is offering consumers credit in the form of zero-interest, fee-free payments on their medical debts has raised $220 million to expand its operations and grow its business faster.
Payzen says it uses technology like artificial intelligence and machine learning to generate payment plans tailored to the budget and repayment ability of each patient. The company offers a credit card that consumers can use to repay their medical bills in installments, rather than having to pay it all at once or have their debts placed with a collection agency. The company initially raised $15 million last November.
Healthcare providers experience a 50% increase in the amount of money they collect when their patients use Payzen’s product, the company claims, rather than using traditional means to recover unpaid debts. Providers also don’t have to worry about attempting to collect on the debts, relying on Payzen to come up with the best payment plan options and engage with patients using the optimal communication channel.
Since raising the $15 million last year, the company says its revenue has doubled every month.
“This exciting round is a testament to PayZen’s product innovation and the immense need for more affordable payment options for patients who are trying to pay their medical bills,” said Itzik Cohen, co-founder and CEO at PayZen, in a statement. “Healthcare equity and affordability is a foundational problem in the U.S. Too many Americans have delayed or foregone getting the care they need because they aren’t offered an affordable way to pay. At PayZen, we’re determined to help fix this broken system.”