- US fintech start-up Collectly, which aims to streamline patient engagement and healthcare payment processes, has secured $29 million in a Series A funding round led by Sapphire Ventures.
- With further participation from YC, Wayfinder Ventures, Burst Capital, Cabra VC and Davidovs VC, the funding round now brings the total amount of funding raised by the Santa Monica, California-based patient financial engagement software firm to $34.1 million.
- The company says the funding will be put towards enhancing its software and furthering its market expansion.
- According to the accounting, consulting and technology firm Crowe, medical providers only manage to collect around 55% of the fees they are owed from providing medical treatment. Collectly attributes this figure to the “inefficient payment processes” incurred by providers and the lack of affordability reported by patients. The company also forecasts that medical providers will forego approximately $200 billion in payment collections this year as a result of “manual collection workflows”.
- Likewise, Forbes reports that such payments account for 35% of medical provider revenue, up from 5% in 2000. With the growing significance of this revenue stream, paired with the continued inability of providers to effectively collect payments, Collectly claims that modernising patient billing systems is “more important than ever”.
- Launched in 2017 by founders Levon Brutyan and Max Mizotin, Collectly has positioned itself as a remedy to this growing divide. The company claims its end-to-end billing workflow solution improves patient collections by 75%, reduces Days Sales Outstanding (DSO) to 12 days and has achieved a 93% patient satisfaction score.
- With the funding from its Series A, Collectly says it intends to “meet the evolving needs of its rapidly expanding base of partners, including medical groups and healthcare organisations that otherwise lack sophisticated patient financial management in-house”.
- Internally, the company adds that it plans to double the size of its current team by at least the end of this year.
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