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Patient financial software company raises $1.7 million through stock sale

By Fred Bazzoli

A company that has developed an application that enables point-of-sale customer financial service in healthcare has raised $1.7 million through the sale of preferred stock.

nTelagent Inc., of Nashville, Tenn, announced the completion of a $1.7 million round of Series E convertible preferred shares.

Investors in the company include Burch Investment Group, Marty Rash, former chairman and CEO of Province Healthcare Co., and Joel and Frank Gordon.

The company said the money would be used to accelerate market penetration of its retail application, which has been configured for use in healthcare.

nTelagent's Self-Pay Management System is an automated system that tells healthcare registrars and financial counselors what to do and what to say to each patient at the point of service regarding their financial responsibility.

Company officials said the application helps move workflow to the front end of the revenue cycle and enables providers to offer a better patient experience through clearer communication and better handling of patient accounts.

As consumers become more responsible for a larger portion of their healthcare costs, applications that help providers in interacting with customers are expected to improve upfront and overall cash flow, better manage receivables and improve profitability by reducing bad debt.

The company's application uses non-credit scoring data to provide registrars and financial counselors with scripts that integrate patient demographic information with each provider's unique business policies and rules. The system enables price transparency and automatically identifies discounting, social service eligibility and charity care options.