PayZen has secured $220 million in additional capital as it tries to extend its “affordability finance” option for consumers, as medical bankruptcies continue to afflict Americans.
The investment, which includes $20 million in equity funding and a $200 million credit facility, will help PayZen increase its operations and product development, according to a news release issued on Tuesday (Nov. 22).
“PayZen has greatly expanded its existing warehouse facility to meet the growing demand for its goods by healthcare providers,” according to the business.
“Because roughly one in every ten Americans has severe medical debt as a result of escalating healthcare prices, this expansion allows the firm to significantly enhance the financial well-being of millions of U.S. healthcare customers.”
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.