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 managing director, Joe Kaiser, joining Paytient’s board of directors and Bertelsmann’s Thorsten Wirkes entering 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 funding will help the health payment accounts company increase growth and product development in 2023.
WHAT THEY DO
Paytient partners with employers, insurers 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, then repay Paytient according to a payment plan chosen 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, cofounder and CEO of Paytient, said in a statement. “Our platform gives patients the power to control when and how they pay medical expenses in a way that’s good for their own wellbeing, and as historic inflation grips the market, this is solving an urgent need for employers and providers, too.”
Healthcare affordability is a considerable concern for Americans. Many are frustrated about the cost associated with healthcare coverage, and the main reason many individuals give for not acquiring health insurance is the perceived cost.
Other health tech companies developing ways to mitigate cost-associated challenges include healthcare fintech PayZen, which touts a “care now, pay later” model.
PayZen pays providers for patients’ invoices, and then the company uses AI to create individualized repayment plans. The startup partners with health systems to integrate its platform into providers’ revenue cycle management systems.
Another company in the payment assistance space is the intelligent patient billing and engagement platform Cedar.