The move toward consumer-based healthcare is spurring new interest in healthcare payment processing technology. The latest to benefit is InstaMed, which recently announced $6 million in equity financing to help the company grow.
Based in Philadelphia, with technical operations in Newport Beach, Calif., InstaMed offers a platform for payment processing and healthcare clearinghouse transactions, providing software and services for providers, payers, financial institutions and consumers. The company claims more than $18 billion a year in market opportunities.
The company announced earlier this week that Osage Partners, a venture capital firm based in Bala Cynwyd, Pa., and Ashby Point Capital of Arnold, Md., have joined existing InstaMed investors in the growth equity financing agreement.
“We believe InstaMed offers a unique investment opportunity as an exciting company in a high growth sector,” said Nate Lentz, managing partner of Osage Partners, in a press release provided by InstaMed. “The company is emerging as the leader in the market for integrated healthcare and financial processing and is well positioned to capitalize on the growing market opportunity presented by the increase in consumer healthcare payments.”
“InstaMed has built a unique payment processing infrastructure for healthcare and has demonstrated that its channel partner strategy and business model work with financial networks, banks and other payment related entities. We believe this will be a powerful technology and new business model for healthcare,” added Bill Westervelt, general partner of Ashby Point Capital.
“InstaMed is excited that Osage and Ashby Point have joined our team,” said Bill Marvin, president and CEO of InstaMed, “With access to this additional growth capital and no debt, we plan to enhance our channel go-to-market strategy and accelerate the adoption of our solutions in the market.”
As part of the financing agreement, Lentz will join InstaMed’s board of directors and Westervelt will become a member of the company’s board of advisors. Westervelt, who co-founded First Annapolis Consulting in 1991, is an expert in the payment systems industry with more than 30 years of operating and advisory experience.
InstaMed’s software is in use in more than 700 hospitals and clinics, according to company officials, as well as in practice management and billing operations representing more than 50,000 providers. The company is a registered TPP with Visa and MasterCard and is affiliated with or accredited by several institutions, including America’s Health Insurance Plans (AHIP), the Electronic Healthcare Network Accreditation Commission (EHNAC) and the Committee on Operating Rules and Information Exchange (C.O.R.E.) Initiative.