The company allows patients to sign up for a plan to pay their medical bills in installments
About 1 in 10 adults, or about 23 million people, have medical debt owed, of which more than $11 million are owed and 3 million people owe more than $10,000. Medical issues are also responsible for more than 66% of bankruptcy filings.
This is bad for everyone, not only for the patient, who may refuse care at all when worried about not being able to pay, but also for the provider, because they need to pay for their services. is required.
Scratch Financial’s solution to this problem is what it calls a “Care Now, Pay Later” product; It acts like a confirmation for medical bills, allowing practices to offer payment plans to their patients so that they can pay their bills in installments and not all at once.
On Tuesday, the company announced $35 million in a Series C funding round led by Norwest Venture Partners, which included Alumni Ventures, Companion Fund, Struck Capital, SWS Venture Capital, TTV Capital and others. It brought in more than $108 million in total.
Founded in 2016, Scratch was originally designed to help pet owners cover the cost of pet care, as well as help them grow their revenue. In six years, Scratch covered healthcare costs for hundreds of thousands of patients and pet owners, and it now partners with 1 in every 3 veterinary practices in the US and Canada.
The company began expanding its products to support human alternative medicine providers in 2020; It now covers bills for dentistry, vision and LASIK, chiropractic and physical therapy, primary care, and dermatology and cosmetic surgery.
After a visit to the clinic, patients can apply for financing directly from their mobile device, and receive instant approval. After the practice has confirmed and finalized the payment amount in their dashboard, the company will deposit the patient’s entire amount into the practice’s bank within two to three business days, minus the scratch flat provider fee.
Plans available to patients include the Scratch plan bi-weekly, which makes a total of five payments, the first of which is paid upon appointment, while the remaining four are paid every two weeks; There is also a 12-month and 24-month plan, neither of which have deferred interest and no prepayment penalties; Some plans also have a 0% APR.
More than 12,000 practices now use Scratch’s product, and the company says it is on track to process nearly $1 billion of patient payments by the end of this year.
Scratch plans to use its new funding to develop new technology that will help medical providers better connect with their customers.
John Keatley, Co-Founder and CEO of Scratch, said, “Financial inclusion has always been a goal for our company – to help connect as many people as possible with transparent and personalized financing options to help them get the money they need for themselves or their loved ones. to receive care.” Statement.
“I am incredibly proud of Scratch’s growth, and this new funding will help us create new products and better experiences to redefine the end-to-end patient experience.”
(Image source: scratchpay.com)