The Rising Burden of Medical Debt for Patients

The cost of healthcare in the United States has been skyrocketing, with the portion of those costs borne by patients increasing even faster. This trend has resulted in a significant accumulation of medical debt among U.S. citizens, totaling at least $220 billion, according to KFF.

PayZen: A Fintech Solution for Patients' Healthcare Costs

PayZen, a five-year-old startup, aims to make healthcare more affordable for patients by enabling them to pay their bills in interest and fee-free installments over time. Their "care now, pay later" product has gained significant traction with consumers, experiencing sixfold revenue growth in each of the past two years.

PayZen's Series B Funding and Business Model

PayZen recently secured $32 million in Series B funding led by NEA, with participation from existing backers like 7WireVentures, Signal Fire, and Viola Ventures. Alongside the equity round, they secured a $200 million warehouse credit facility from Viola Credit and a syndicate of insurance companies. This funding round values PayZen at over $200 million.

• PayZen's model benefits both patients and healthcare providers.
• Providers who partner with PayZen see an average increase in collection rates by 35%.

Overcoming the Challenges of Selling "Buy Now, Pay Later" in Healthcare

Convincing healthcare providers to adopt a "buy now, pay later" model was initially challenging. PayZen's founder, Itzik Cohen, explains that the complexity of the healthcare market, unlike e-commerce, made it less appealing to many BNPL providers.

PayZen's Differentiation: Integration and Pre-Care Solutions

PayZen stands out from competitors by integrating directly into patients' medical record portals like Epic's MyChart, offering a streamlined experience. This integration sets them apart from incumbents like ClearBalance and Access One, which rely on call centers.

• PayZen's focus on integration and user-friendliness aligns with the industry's shift towards digital solutions.
• Beyond post-care loans, PayZen recently launched a pre-care card to address the increasing demand for deposits before procedures.

PayZen's Impact and Vision

PayZen currently collaborates with over 60 health systems and prominent physician groups, making its services accessible to a wide range of patients. Their data-driven approach also helps healthcare systems identify patients eligible for government financial assistance.

PayZen's commitment to social impact is evident in its mission to alleviate the financial burden of healthcare for patients. They strive to make a positive difference in the lives of their users, helping them access necessary care without overwhelming financial hardship.