Startup Raises $232M to Transform Health Care Affordability With AI

Healthcare fintech startup PayZen has secured $232 million in a series B funding round to expand its AI-driven health care affordability platform.

Founded to remove financial barriers to care, the San Francisco-based startup’s AI-powered platform creates personalized payment plans for patients while improving financial results for health care systems.

The funding round was led by NEA, with participation from existing investors including 7wireVentures, SignalFire and Viola Ventures. 

The round consisted of $32 million in equity raised and a new $200 million credit warehouse from Viola Credit and several insurance companies.

PayZen plans to use the funds to bring its affordable, customizable health care payment options to more Americans and introduce new AI-driven solutions addressing patient affordability needs.

“This latest round is the next step in our journey to remove financial barriers to care for patients,” says Itzik Cohen, PayZen’s co-founder and CEO. “We are honored to have found partners in both our investors and our health systems network that share the same vision for the future.”

PayZen's platform leverages proprietary AI and machine learning models which are integrated into electronic medical records systems to simplify the patient payment process for health systems.

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The startup's AI-powered platform analyzes various data points to create tailored payment plans that ease the financial burden for patients while improving collections for health care providers. 

PayZen has reported growth that includes achieving a six times year-over-year increase over the last two years with 100% customer retention and 132% net retention.

“This milestone, marked by a highly competitive and oversubscribed round, positions us to continue perfecting our platform and bridge healthcare’s financial gap for good,” Cohen said.