Last week MedPilot, a patient financial engagement platform, scored $1.7 million in seed funding. The latest financing round was led by Hudson River Capital Partners, Valley Growth Ventures, Cedars-Sinai Medical Center, Techstars, and investor Tom Hirscheld.
The company said the new money will help MedPilot expand its workforce and launch new functionality to help providers engage with patients.
The platform employs machine learning to personalize communication methods, content and payment options for patients. It also helps the administrative team track the patient experience.
Why it matters
Medical debt is a massive problem in the US health system. According to a 2015 Urban Institute report, half of all debt in collections is medical debt and one fifth of consumers have medical debt.
The obstacles in paying that debt have often sparked debate and discourse in the industry. But many are turning to tech to help reach consumers and find ways for them to manage this debt.
“Even in 2018, healthcare providers still primarily communicate with patients about complicated billing matters by mailing statements and reminders.” Jacob Myers, cofounder and CEO of MedPilot, said in a statement. “As patient responsibility has skyrocketed in recent years, the need for a more modern and effective approach has become apparent. Patients deserve better. We founded MedPilot to transform the patient financial experience and help people better understand and resolve their medical expenses. We’re thrilled by the rapid growth in our business, and excited to be joined by so many incredible investors.”
MedPilot is a fairly young company, having just finished in Cedars-Sinai’s Accelerator program. But there are others also working on the medical debt problem. For example, New York City-based Cedar is offering a patient personalized medical billing system. Cedar pitches a smart billing system that incorporates multiple data points collected across the patient’s payment process.
On the record
“We can all agree the standard patient billing process could use some work. MedPilot is uniquely positioned to use their experience to bring a new way for patients to engage and pay for their healthcare,” Ernie Knight, managing director of Valley Growth Ventures, said in a statement.