PayZen provides interest- and fee-free installment loans that let patients pay healthcare bills over time, integrated directly into medical record portals like Epic’s MyChart. The company positions its product as a way to make care more affordable while improving provider collections through tighter system integration. PayZen says revenue has expanded sixfold in each of the past two years and it now works with more than 60 health systems and large physician groups, including Geisinger and CommonSpirit. The startup reports that providers who work with PayZen increase their collections rate by 35%. Product expansion includes a recently introduced pre-care card for deposits and use of data and AI to identify patients who qualify for government financial assistance. PayZen closed a $32M Series B and paired the equity with a $200M warehouse credit facility to support growth and operations, and the deal values the company upward of $200M. PayZen offers a personalized, no-cost patient financing platform aimed at tackling healthcare affordability and has positioned itself as a pioneer of “Affordability Financing.” The company’s platform was introduced last year and has found strong demand among hospitals and health systems. Since its last round in November 2021, PayZen says it has doubled its revenue every month, a metric it attributes to rapidly accelerating industry demand. The company expanded its warehouse facility to meet growing provider demand and to directly improve the financial well-being of millions of U.S. healthcare consumers. PayZen plans to use the new capital to scale operations and product development and to accelerate its mission to make personalized, affordable payment options broadly available. Leadership emphasizes a goal of becoming the embedded finance platform for the healthcare industry. PayZen provides a 'care now, pay later' platform that leverages artificial intelligence to underwrite patients’ medical debt and create individualized, interest- and fee-free installment plans. Hospitals can offer these plans while keeping the financing costs on their own books, and PayZen says its underwriting increases payment adherence and reduces administrative costs. Geisinger Hospital reported a 23% increase in payment collection after implementing PayZen. The company was founded in 2019 by Ariel Rosenthal, Itzik Cohen (CEO), and Tobias Mezger; Cohen previously led consumer debt fintech Beyond Finance. PayZen currently has about 35 employees and expects to grow to roughly 100 by the end of next year. The startup, which launched its product less than a year ago, expects to announce a significant product expansion in January. PayZen provides a digital platform that pays hospitals upfront for patient invoices and offers patients zero-interest, fee-free payment plans. The system integrates into hospital systems and is designed to be seamless for both patients and hospital administrators. PayZen deployed an AI-backed technology platform through partnerships with RMS and Vim. Those partnerships have allowed the company to reach hundreds of hospital systems and thousands of patients across the country. PayZen came out of stealth after being incubated with Viola Ventures in 2019 and is led by founders Itzik Cohen and Tobias Mezger. The company raised $5 million in seed funding from investors including Picus Capital, TWO39 Ventures and others.

Total raised

$472M

Funding rounds

6

Latest round

Series B

Latest activity

Aug 2024