InstaMed Files for IPO to Scale Its Standardized U.S. Healthcare Payments Platform Handling Tens of Billions Annually

Nowadays, the use of online payment methods to purchase products and services has become widespread, and the demand for online payments continues to rise. Although the development of online medical payments has been relatively slow, the modernization trend of hospital services is unstoppable as the coverage of medical internet connectivity expands.

Starting August 1 this year, Guangzhou officially launched a pilot program for online payment of social medical insurance services. Dedicated apps at pilot hospitals allow users to link their personal social security cards, enabling mobile payment for the portion of medical expenses not covered by insurance reimbursement, thereby eliminating the need to wait in long queues to pay. The comprehensive implementation of online medical billing represents the future trend.

In the United States, there is such a companyInstaMed, its online healthcare payment platform has matured. As a leading online healthcare payment service provider, it seamlessly connects healthcare providers, payers, and patients. In its latest funding round this September, InstaMed raised $50 million, led by Carrick Capital Partners. The company plans to use these funds to accelerate the development of InstaMed’s healthcare network on its platform, speed up its market entry strategy, and drive further innovation in the healthcare payment sector.

InstaMed Network’s Four Key Roles: Providers, Payers, Patients, and Developers

InstaMed was founded in 2004 and currently operates out of two offices: its headquarters in Philadelphia and a branch in Newport Beach, California. InstaMed’s payment network has expanded rapidly, serving companies of all sizes across all 50 U.S. states. The company now accounts for nearly two-thirds of the U.S. healthcare payments market, with annual healthcare transaction volumes on its platform reaching tens of billions of dollars.

InstaMed has undoubtedly been fortunate to ride the wave of online consumerism, particularly during the rise of internet healthcare; yet what truly sets it apart is its systemSafety and Complianceefforts have maximized payment security, earning the trust of platform users. There is ample basis for such high praise of InstaMed’s healthcare payment platform: it is the first and, to date, the only platform on the market that is simultaneously endorsed by both the healthcare industry and the payment sectorHighest-Level Independent Security Certificationof the institution.

A brief overview of InstaMed’s certifications includes: Payment Card Industry Data Security Standard (PCI-DSS) Level 1 Service Provider; Electronic Healthcare Network Accreditation Commission (EHNAC) accreditation for Financial Services Accreditation Program (FSAP) and Healthcare Network Accreditation Program (HNAP); Health Insurance Portability and Accountability Act (HIPAA) compliance; and National Automated Clearing House Association (NACHA) certification. These credentials not only attest to its security, but InstaMed’s system also ensures 24/7 uptime, striving to achieve the highest level of payment security.

Generally, purchasing different medical products from various websites and maintaining multiple accounts simultaneously increases the risk of account theft. InstaMed has successfully consolidated all aspects and modules of healthcare payments onto a single platform that is compatible with all major healthcare platform systems. This allows users to access services from multiple healthcare platforms using a single account and choose from various payment methods, greatly facilitating the payment process for users.

For healthcare providers, InstaMed’s comprehensive payment and clearing system streamlines their revenue collection processes, reducing the time and money spent on collections. For providers and payers, InstaMed offers two distinct platforms—InstaMed Online for Providers and InstaMed Online for Payers—which are seamlessly integrated in functionality, effectively lowering costs associated with collections, settlements, refunds, and other related operations.

After a decade of technological accumulation, InstaMed launched its latest solution, the InstaMed Estimator, in late May this year. This system enables more accurate calculation of patients’ out-of-pocket medical expenses, automates insurance verification, and ensures that payers’ interests are safeguarded. Tailored to customer preferences,The system can automatically simulate its medical workflows., generate standardized pricing models, but if customers do not require certain services or products, they can also customize them.

The 2015 U.S. Annual Healthcare Payment Trends Report indicated that nine out of ten consumers desire clear, upfront visibility into their medical expense breakdowns. With the Estimator system, customer satisfaction is higher because consumers select services themselves, thereby significantly reducing the likelihood of refund disputes.

“Regarding specific medical spending, we have always aimed to maintain effective communication with patients. Estimator empowers customers to make their own choices from the outset, which fundamentally facilitates subsequent discussions,” said Vicki Durso, Finance Manager of the Radiology Regional Center. “With the Estimator system, our staff can easily present consumers with multiple options. This enables us to better understand patient needs while granting them greater autonomy.”

InstaMed’s greatest strength lies in its rapidly expanding and tightly integrated healthcare network. However, InstaMed’s ambition extends beyond merely connecting stakeholders online; it also hosts an annual user conference to foster greater offline collaboration and communication among healthcare professionals. In April of this year, InstaMed organized its 2016 User Conference, the largest gathering of suppliers, payers, and partners since the company’s inception. This event enabled participants across all segments of the InstaMed healthcare payment network to connect more fully, thereby further strengthening their communication and collaboration.

Speakers from Renowned Healthcare Companies and Institutions

The conference was held at the renowned landmark of Philadelphia, The Franklin Institute. It invited many prominent InstaMed users to share their experiences with the payment platform, including Anthem Inc., Carolinas HealthCare System, Geisinger Health Plan, and Northwestern Memorial HealthCare. Institutions and enterprises participating in the conference were eligible to receive ongoing education from the Healthcare Information and Management Systems Society (HIMSS) and America’s Health Insurance Plans (AHIP). During the event, InstaMed also released its annual report on healthcare payments, which included its proprietary payment data as well as other valuable data indicating trends in the healthcare payment market.

Bill Marvin, Chairman and CEO of InstaMed, stated, “The 2016 User Conference facilitated new collaborations between high-quality healthcare providers and payers, sparking innovative ideas and strengthening the connectivity of the InstaMed network, which underscores InstaMed’s greater value. Mutual benefit and win-win outcomes among healthcare enterprises have driven the continuous development of the entire industry.”

InstaMed’s leadership team consists of 10 members, with responsibilities spanning management, technology, operations, product, marketing, legal, and finance.Co-founders Bill Marvin and Chris Seib serve as CEO and CTO (Chief Technology Officer), respectively. Prior to founding InstaMed, both held leadership positions in Accenture’s Healthcare and Life Sciences practice, where they gained experience collaborating with major organizations such as UnitedHealth Group, the U.S. Department of the Treasury, WellPoint, and other large healthcare institutions. Marvin previously founded CareWide, a healthcare consulting applications company, and has extensive experience in projects involving transaction processing, portals, vendor selection, and medical management. Seib is a versatile technology expert with multifaceted skills and experience in programming, user experience, database technologies, and project management; the products he designed for InstaMed have secured numerous patents.

Other team members largely possess work experience at major corporations, including Shire Pharmaceuticals, Microsoft, Maxicard Bank, and Arbinet.

InstaMed has raised funds 13 times to date, with nine companies participating as investors and total funding exceeding $125 million; this latest round sets a new record. As part of the financing, Jim Madden, Co-Founder and Managing Director of Carrick Capital Partners, will join InstaMed’s Board of Directors, while Chris Wenner, a Vice President at Carrick Capital Partners, will serve as a board observer.

13 rounds of financing, totaling over $125 million

“We are thrilled to collaborate with Bill Marvin, Chairman and CEO of InstaMed, and his team. They are actively transforming healthcare payments to deliver a simpler and more intuitive user experience,” said Jim Madden, Founder of Carrick Capital Partners. “We have made InstaMed a cornerstone investment in our healthcare technology portfolio, highly valuing its cutting-edge performance in healthcare payment platforms, its network-based business model, and its continuous optimization of security and compliance.”