Not only are healthcare bills confusing, but paper bills often get lost in the mail or pile up on the counter. Large medical institutions offer electronic billing in most cases, but this is not always available to individual or small practices.
this is the sweetest place collectivelyfounded by Levon Brutyan and Max Mizotin to help healthcare providers collect payments more easily.
According to a report, the amount About 55% of medical providers collected The percentage of debt owed in 2021 is down from 76% the year before.
“The total amount paid by patients is about $480 billion, and considering that patient liability is growing at about 12% a year, that massive number increases,” Brutyan told TechCrunch. “The bigger pain point for healthcare organizations is that about $200 billion of that is never collected. Hospitals, for example, make very little profit, and a lot of them are actually losing money, so that makes the whole thing worse.”
Pasadena-based Collectly has a proprietary interface that integrates with electronic health records and practice management software to enhance patient billing operations.
Through its platform, he added, clients have been able to increase patient collections from medical group partners by an average of 75%, reduce “days to sale due” from 60 to 90 days to 12, and achieve a 93% patient satisfaction score—important for patient retention.
We’ve followed Collectly since it launched in 2017 as a digital debt collection startup, and became part of Y Combinator later that same year, raising $1.9 million and refocusing on automating and simplifying billing operations as a patient financial engagement company.
Currently, Collectly is attracting over 300,000 patients per day and revenue is growing more than 3x year-over-year. Brutian touted its growth and the fact that the company “hasn’t lost anything” as reasons why investors are eager to provide the company with additional growth capital.
The company has raised $29 million in Series A funding led by Sapphire Ventures, with participation from YC, Wayfinder Ventures, Burst Capital, Cabra VC, and Davidovs VC. The new investments bring the total funds raised to $34.1 million.
Brutian declined to say what the company’s new round of funding was valued at. He did say, however, that “the valuation has grown accordingly” and that it is “one of the few companies that can be profitable over the long term and grow on its own.” I think investors especially appreciate that during these interesting and difficult times. “
He intends to use the new funding for technology and product development, and to double the size of the team by the end of the year. The company will also launch new products around pre-service modules and face-to-face payments.
“We’re also working on emerging technologies like ChatGPT,” Brutyan said. “AI is highly leveraged, so we’re also working to ensure patients have the best possible experience, understand their bill and resolve issues in a timely manner.”