PayZen Raises $32M Series B to Expand “Care Now, Pay Later” Medical Bill Payment Platform
One of the leading companies offering payment plans for medical bills has closed a significant funding round that will fuel the expansion of its “care now, pay later” product. PayZen announced it has secured $32 million in a Series B round led by top venture capital firm NEA. Additionally, the company obtained a $200 million debt facility to support further growth.
Rising healthcare costs in the US have pushed more of the financial burden onto individuals over time. Where patients once paid a minor portion of medical bills, out-of-pocket expenses now account for over a third of provider revenue on average. This trend has left millions struggling with accumulated medical debt totalling over $220 billion nationally.
Founded in 2019, PayZen aims to improve affordability and access to care. The startup partners with healthcare providers to let patients pay for treatment through interest-free installment plans. Service usage has increased dramatically, with the company reporting sixfold revenue growth in the past two years alone.
This strong performance helped convince investors to back the current funding round. The new capital will fuel PayZen’s continued expansion among providers and patients. Integrations directly into electronic medical record portals give the startup an edge over call center-reliant competitors in an increasingly digital healthcare field.
PayZen Founder Itzik Cohen credits the seamless digital experience and convenience of the offering for its resonating popularity. Over 60 health systems have signed on so far. Beyond paying bills over time, the company also introduced a pre-care financing card and tools to help providers assist patients in qualifying for assistance programs.
With healthcare debts continuing to burden many households, innovative solutions exploring new payment models could play an important role in improving overall affordability and access to necessary medical services in the coming years.
