As medical bankruptcies continue to plague Americans, PayZen has raised an extra $220 million in financing as it strives to expand its “affordability loan” option for customers.
According to a press release released on Tuesday, the investment, which consists of $20 million in equity capital and a $200 million credit facility, will aid PayZen in expanding operations and product development (Nov. 22).
According to the company, “PayZen has significantly expanded its existing storage facilities to satisfy the increased demand for its items 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.
PayZen is a San Francisco-based firm that “pays hospitals upfront for patient invoices and provides patients zero-interest, fee-free payment options,” helping hospitals to enhance collections while making healthcare more affordable.
The new funding round comes at a time when medical debt — long known as the leading cause of personal bankruptcy — is becoming more manageable, thanks to digital payment tools that allow consumers to pay for care without falling behind or having to forego treatment.
This is fueling more innovation in healthcare payments than ever before, with specialized lines of credit and buy now, pay later (BNPL) alternatives boosting availability and acceptance.
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.
