Processing nearly $20 billion annually in healthcare markets, InstaMed, based in Philadelphia, has become an industry leader in payments networks and platforms. As healthcare payments shift to consumers and healthcare spending increases nationwide, that number will only grow.
It’s a lot to keep up with, but the announcement last month of $6 million in funding from Osage Partners, a venture capital firm in nearby Bala Cynwyd, and Ashby Point Capital of Arnold, Md., will go a long way in allowing InstaMed to pick up even more market share.
“If we sell our services to a large health plan, I have to staff the project and get that company up and running with our system within 30 days,” say Bill Marvin, President and CEO of InstaMed. “Even if you’re a winning business, it helps to have additional capital to meet the demand.”
InstaMed is a model of a winning business, with up to 10-15 percent month-over-month growth through 2008. It’s been a challenge as much as a blessing, but the last month’s infusion of funds helps, as the business’ growth trajectory will likely continue.
InstaMed offers dramatic revenue, operating and convenience improvements to patients and healthcare providers, which includes health systems, community hospitals, laboratories, large group practices and solo practitioners. With the economy still struggling, hospital CFOs can’t rely on dipping into investments or leaning on donors to make up for deficits. They’re more likely to turn to InstaMed for its payment processing and healthcare clearinghouse functions, which come on the company’s proprietary integrated platform and network.
“The economy is forcing them to focus on their core business,” says Marvin. “Plus, more and more are going to electronic processing.”
Source: Bill Marvin, InstaMed
Writer: Joe Petrucci
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