Healthcare Affordability Revolution: Startup Secures $232M for AI Transformation

PayZen, a healthcare fintech startup, has successfully secured $232 million in a series B funding round to expand its innovative health care affordability platform driven by AI technology. The San Francisco-based company makes tailored payment plans for patients to break down financial obstacles to care, ultimately benefiting health care facilities by enhancing their financial outcomes.

Leading the funding round is NEA, joined by existing investors like 7wireVentures, SignalFire, and Viola Ventures. The round included $32 million in raised equity and a $200 million credit warehouse from Viola Credit and various insurance companies. PayZen aims to utilize the capital to introduce its customizable health care payment options to a wider audience across the United States and innovate new AI-based solutions to address patient affordability concerns.

"It is an exciting next step in our journey to eliminate financial barriers in health care for patients," explained Itzik Cohen, PayZen's CEO and co-founder. "We are grateful to have investors and partners who are aligned with our vision for the future of health care." PayZen's platform integrates exclusive AI and machine learning models directly into electronic medical records systems to simplify the patient payment process, benefiting both patients and health care providers.

Empowered by AI, the platform analyzes numerous data points to generate tailored payment plans that ease financial strain on patients and enhance collections for health care organizations. PayZen has shown considerable growth, with a six-fold year-over-year increase in the past two years, along with an impressive 100% customer retention rate and 132% net retention.

Cohen expressed confidence in PayZen's trajectory, stating, "This significant achievement, with a highly competitive and oversubscribed funding round, positions us to further enhance our platform and bridge the financial divide in healthcare permanently."