Ensuring Care: Why Mercato Led Paytient’s $40M Series B


In 2004, the introduction of high deductible healthcare plans changed the insurance payment landscape in the United States for patients. As the price of healthcare increased and patients became personally liable for more of their care costs, so too did the prevenance of medical debt increase. While Health Savings Accounts are not solving for this liquidity crunch, Paytient is.


Why We Invested in Paytient


In 2004, the introduction of high deductible healthcare plans (HDHPs) changed the insurance payment landscape in the United States for patients, but not for the better. Over the course of the following two decades, HDHPs—which typically only cover preventative care—would become the norm. Consequently, reactive care—such as medical emergencies and accidents—began to result in higher out-of-pocket costs. The outcome? Americans were frequently made to choose between visiting a doctor or going into debt.

In addition to the increased personal financial liability associated with seeking healthcare, the underlying cost of that care has been on the rise over the last two decades. Between 2010 to 2020 alone, the cost of healthcare in theUnited States rose by 37% on a constant dollar basis. Unsurprisingly, the prevalence of medical debt also rose to 58% over this same period according to a study byThird Way.

All of this is even more concerning when taking into consideration that the $98B (as of 2021) held in Health Savings Accounts (HSAs)is not solving for this liquidity issue. Paytient, on the other hand, is.

Founded in 2018, Paytient created the Health Payment Account(HPA), a new asset class and employer-sponsored benefit that provides covered members a way to pay for medical-related expenses without fees, interest, or credit checks. Designed to help provide relief to the increasing number of patients who struggle with high deductibles and empty HSAs, Paytient is a sponsored, interest-free line of credit that works in coordination with insurers and health systems, and allows members to pay for care over time through customizable payments plans that come directly out of their paychecks.

Few people plan on getting sick, and even fewer are immune to the financial impact of unexpected out-of-pocket healthcare costs
– Brian Whorley, CEO

In addition to selling into an employer as a part of its benefit package, Paytient partners with insurers and health systems to help minimize balance sheet risks and liabilities, reduce administrative burdens, and improve patient quality and experience. By integrating across the provider and payor spectrum, Paytient is helping to ensure more equitable, accessible, and predictable care. After all, when patients have the power to pay and the dignity of choice, they make better decisions, leading to improved provider NPS scores and increased volumes of commercially insured patients.

Today, Paytient serves over 1,000 enterprise clients in partnership with most of the Fortune 100’s major payors, and is developing new product features in pursuit of the company’s mission to not only ensure people have the power to pay for healthcare, but also to help them more easily access quality care for better prices.

By building towards a healthier future, Paytient is, undoubtedly, building better.