InstaMed (@InstaMed), which bills itself as the “Paypal of Healthcare”, has raised $14 million which it will use to increase its transaction volume.
InstaMed is a B2B service which partners with providers to power their in-house patient billing management systems; and according to their website the company has processed tens of billions of dollars in payments to date.
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 it was founded in 2004, InstaMed has processed 150 million transactions, a number the company anticipates it will match this year alone.
“We are pleased with the strong support from our geographically diverse investor base,” said Bill Marvin, co-founder, CEO and chairman of InstaMed. “The healthcare payments market is ripe for transformation, and this investment validates our strategy and execution to date as well as the opportunity ahead. As the healthcare payments industry continues to expand, we have a great deal of headroom for growth and opportunity to create value for the market.”
InstaMed offers a comprehensive solution set for managing health care payments, including document management solutions such as its Batch eCheck processing device.
InstaMed has raised a total of $35 million to date, though CEO Marvin tells MedCity News the company is not looking at potential acquisitions but is instead focused on continuing its strong organic growth. “We are scaling the business and making sure we can keep up with public demand. We’re investing in infrastructure and technology.”
“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.”
Similar services offered by Simplee and Cake Health are entirely patient-focused consumer services and will likely have a difficult time scaling their services to achieve the payment volume of InstaMed as a result.
More than 90 percent of InstaMed’s existing investors participated, representing broad and sustained participation from the east and west coasts. The new capital included funding from five funds, including one new fund, as well as angels.
