PayZen, which creates individualised payment plans, has come out of stealth alongside a $5m seed investment.
The company was incubated with Viola Ventures in 2019, and has received investments from Picus Capital, TW039 Ventures and others.
Headquartered in San Francisco, the company pays hospitals upfront for invoices and gives the patient a zero-interest payment plan. Patients are not charged fees and can change their payment schedule at any time.
The company claims to increase collections for hospitals by 50%, while making healthcare more affordable.
PayZen recently signed a deal with revenue cycle management vendor RMS and digital health company Vim. These partnerships have enabled PayZen to deploy its AI-backed technology platform across several healthcare providers.
PayZen CEO and co-founder Itzik Cohen said, “PayZen addresses a decades-long problem of hospital bills going unpaid due to patients’ inability to pay large lump sum medical invoices.
“We’ve created a business model that does well and good, addressing the challenges experienced both by patients and hospitals when it comes to out-of-pocket expenses.”
The FinTech has secured more than $200m in debt financing commitments from capital providers.
Viola Ventures general partner Omry Ben David said, “We believe vertically embedded fintech solutions will impact many industries which led us to take an integral part in PayZen’s incubation.
“The $3.7 trillion U.S. healthcare industry is ripe to be disrupted with affordable, transparent, and inclusive patient payment plans, driven by data and AI, offering a real win-win for providers and patients, with no fine print.”
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