Healthcare payment platforms hit stride

The Centers for Medicare & Medicaid Services recently predicted annual healthcare spending will reach nearly $5.5 trillion and account for 19.9 percent of U.S. Gross Domestic Product by 2025. With annual projected growth of 5.6 percent over the next decade, the healthcare payment technology race is heating up as investors and platform developers converge to resolve the complexities of multiparty healthcare systems.

For consumers, lack of transparency on out-of-pocket expenses has created indebtedness and an accounting backlog or even chargeoffs for healthcare service providers, analysts noted. One company intent on changing the dynamics is Chicago-based startup, HealthiPASS Inc., a patient check-in and payment technology provider that just secured $7.2 million in Series A funding for a platform and tablet kiosk the company is touting as the next Square.

"Far too many people are unclear on how much a visit to the doctor will cost them, and navigating what's covered by insurance and what is the patient's responsibility can be frustrating and confusing," said Rajesh Voddiraju, Chief Executive Officer of HealthiPASS. "With HealthiPASS, we offer our providers a strategic advantage in the market."

The company noted that its strategic advantage entails self-service patient check-in at countertop iPad kiosks. Patients using HealthiPASS can check-in to appointments with a swipe of a credit or debit card, or by scanning a unique quick response code or PASS, and process payments on the spot.

The system offers real-time insurance eligibility verification; instant patient visit cost estimates; collection and secure storage of patient payment information; automated collection of prior balances, co-pays and pre-service deposits at check-in, and provides balances after insurance payments, which are typically collected within three to five days, HealthiPASS stated.

"We're empowering them to give patients greater clarity and transparency into their financial responsibilities and enhancing the patient payment experience, which results in higher patient satisfaction and loyalty," Voddiraju said.

The company estimates that its multichannel patient engagement platform will enable healthcare providers to achieve net collection rates of up to 96 percent, which is 45 percent above the industry standard. To further engage patients, HealthiPASS enables users to access the platform at any time using smartphone or web-based apps to track charges for care received, the company noted.

Other providers poised for growth

Boise, Idaho-based VisitPay stated it offers proprietary cloud-based technology that took seven years to develop and is now used by health systems with total net patient revenue of $30 billion. The company recently added Flare Capital Partners as a venture capital investor partner. The VisitPay platform equips hospital systems with segmentation and analytics tools, while delivering a solution for consumers to manage healthcare bills.

"In an era of high deductible plans where 75 percent of the American population struggles to pay any unexpected expense of more than $400, and as changing reimbursement rates narrow margins for hospital systems, VisitPay gives patients more control over the payment experience while reducing the administrative and financial burden of bad debt on the provider, freeing resources for what they do best: clinical excellence," said Gary Gottlieb, an Executive Partner at Flare Capital.

Another competitor in this lucrative space is Valhalla, N.Y.-based Rectangle Health, a division of Retriever Medical/Dental Payments LLC that has focuses on simplifying patient and member premium payment processing.

"With our focus and experience in healthcare and premium processing, we have developed new tools, including our proprietary Practice Management Bridge, which effectively address common challenges such as integrating with a practice management system," said Michael Peluso, General Manager for Rectangle Health. "For insurance companies and HR teams, we provide the option to collect premiums without the hassle of payroll deduction."

CMS projected that healthcare spending will outpace growth in U.S. gross domestic product by 1.2 percentage points over the next decade due to an aging population and rising healthcare costs. If this is accurate, integrated healthcare payment platform developers seeking venture capital and opportunities for growth will likely continue to emerge.

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