A privately held East Coast healthcare payment solutions provider described by the CEO as the “PayPal of Healthcare” has raised $14 million and is using the capital to increase its headroom to boost the amount of transactions it processes.
InstaMed, based in Philadelphia, uses a private cloud network to work with healthcare providers, insurers and patients to improve efficiencies and coordinate bill payments. Since its start in 2004, the company has processed 150 million transactions, a figure the CEO and co-founder Bill Marvin estimates it will match this year alone.
The company raised the money from five funds from the East and West coasts, including a new, high-profile fund that could not be disclosed. It has raised about $35 million to date.
Marvin told MedCity News that the company believes with easier ways to coordinate healthcare payments, it can reduce healthcare providers’ debts and make the industry more in line with other sectors. One way it improves efficiencies is by cutting down the administrative cost of healthcare — the paper and phone calls between patients, payers and providers.
It brings together healthcare clearinghouses that move claims and eligibility data as well as payment processors and electronic transfer capabilities onto its network, functionalities, Marvin says, that have not been combined before.
He said the company isn’t looking at acquisitions, but is focusing on growing organically. “We are scaling the business and making sure we can keep up with public demand. We’re investing in infrastructure and technology.”
Marvin said the company plans to add 10 to 15 staff members this year.
“Patients can go online and see their payments electronically, and then click and make a payment,” said Marvin, “That’s an entirely new market for healthcare. … What we’re establishing ourselves as is the one place you can go to get payment processing and healthcare transaction processing.”