PayZen is a fintech healthcare startup initiated on July 2019. Its owners are Ariel Rodenthak, Itzik Cohen, & Tobias Mezger, and its headquarters are in San Francisco Bay Area, West Coast, Western US. The platform is launched to tackle the increasing patient payment problems, allowing them to pay out-of-their-pocket bills in installments at no additional fees or zero interest charges.
PayZen uses machine learning, AI, or financial technology to develop economical healthcare plans, providing transparent and practical payment options.
Through its smart-medical and non-recourse financing plans, the platform is dedicated to enhancing patient’s fees paying load and structure (allowing them to pay in installments varying from 6 months to 30 months) and financial benefits to providers (settling off their debts at once) for the best outcomes. The company has raised around $240 million in its five funding rounds, and North Sunflower Medical Center, Evangelical Community Hospital, and Appalachian Regional are some of its customers.
Being a new startup, the company has limited coverage, and users can only opt for PayZen options with hospitals partnered with PayZen. It has partnered with around 30 providers from 15 states of Southeast, Midwest, the Gulf, and Mid-Atlantic regions. However, the company plans to expand its reach in 50 states by the end of 2023.
To pay using PayZen with partnered providers, the following requirements need to be met –
- Patients must be US residents.
- Only necessary care is covered in the plans (for example – treatment plans like cosmetic surgery are not included)
- Total pending medical bill, after insurance, must range between $250-$10,000,
Key Features of the Platform
- PayZen accelerates cash flow, optimises medical providers’ revenue cycle, and helps reduce hospital expenses for patients. They provide personalised plans for all the patients, depending on their requirements.
- PayZen charges 0% fees or $0 interest from patients and applies a soft pull-on credit record without affecting the credit score of the users.
- Payzen installment plans vary from three to sixty months.
- Patients have the option to make payments in six to thirty months.
- If a patient is undergoing financial stress, payment pause options can be opted for.
- Patients have the option to make early payments or cancel payments at any time.
- PayZen offers multiple payment methods, including HSA/FSA cards, credit or debit cards.
- Patients can also change their payment terms, EMI amount, and due dates.
- PayZen is HIPAA and SOC2-compliant, which secures patients’ information and prioritizes data security.
- Every patient can enroll on the platform and require no credit applications.
How to Use PayZen?
Being a new startup, PayZen services can only be availed by hospitals, as they are not upfront available to the patients, and those who haven’t partnered with PayZen can be suggested to use the same.
Using PayZen includes the following steps:
- Healthcare providers partnered with PayZen will give the option to create a PayZen care card.
- Physical cards will be shipped in seven days, and patients must activate their accounts to use the virtual card.
- Once done, they can use the card to pay in person or online at the hospital.
- PayZen will negotiate the total amount with healthcare centers and pay their bills. Customers, further, can split their payments into tailored repayment plans at zero fees or interest.