As medical bankruptcies continue to plague Americans, PayZen has raised an additional $220 million in the capital with the intention of growing its patient “affordability finance” program.
According to a press release from the company, the $200 million credit facility and $20 million in equity investment will aid PayZen in expanding its business operations and product development.
To meet the rising demand for its products from healthcare providers, PayZen has “significantly expanded its existing warehouse facility,” according to the company.
Since nearly 1 in 10 adults in the United States has significant medical debt due to rising healthcare costs, this expansion gives the company the opportunity to significantly improve the financial well-being of those consumers.
Described as one that “offers patients zero-interest, fee-free payment plans and pays hospitals upfront for patient invoices,” PayZen is a San Francisco-based startup that was founded last year. By doing this, hospitals are able to increase collections while reducing healthcare costs.
The new funding round coincides with the consumer’s increased ability to manage medical debt, which has long been recognized as the main cause of personal bankruptcy due to consumer access to digital payment tools.
Healthcare payment innovation is booming more than ever thanks to the increased accessibility and acceptance of specialized lines of credit and buy now, pay later options.
