In the landscape of healthcare, medical providers face an ongoing challenge with payment collection. The process can be overwhelming, especially for solo or small practices without the resources to offer electronic billing. Pasadena-based company, Collectly, founded by Levon Brutyan and Max Mizotin, aims to revolutionize this payment collection process, helping medical providers streamline operations and improve financial outcomes.
A recent report revealed that in 2021, medical providers only collected about 55% of the amount owed, a significant decrease from the previous year’s 76% collection rate. This decline poses a substantial challenge for healthcare organizations as patient responsibility continues to grow by approximately 12% annually. With patient payments estimated at around $480 billion, of which $200 billion remains uncollected, hospitals and medical practices face financial strain. Many operate on narrow profit margins, and the inability to collect a significant portion of patient payments further exacerbates their financial challenges.
Recognizing the urgent need for improved payment collection processes, Collectly offers a solution that empowers medical providers to collect payments more efficiently and effectively. By integrating seamlessly with electronic health records and practice management software, Collectly enhances patient billing operations and automates various aspects of the payment collection workflow.
Leveraging technology, Collectly has achieved impressive results. On average, medical group partners using Collectly’s platform experienced a remarkable 75% increase in patient collections. The “days sales outstanding” metric, measuring the average days to collect payments, reduced from 60-90 days to an impressive 12 days. These improvements contribute to enhanced financial outcomes and a remarkable 93% patient satisfaction score, essential for patient retention.
Collectly’s journey began in 2017 as a digital debt collection startup but pivoted after participating in Y Combinator and raising $1.9 million in funding. Since then, Collectly has grown significantly, engaging over 300,000 patients daily and consistently increasing its revenue year over year.
Recognizing its growth and profitability, Collectly recently closed a $29 million Series A funding round, led by Sapphire Ventures, with participation from prominent investors. This brings the total capital raised by Collectly to an impressive $34.1 million.
With this funding success, Collectly plans to enhance its technology and product offerings, continue scaling its operations, and provide greater support to its expanding customer base. The company aims to roll out new products focused on pre-service modules and in-person payments, catering to the evolving needs of healthcare providers and patients. Additionally, Collectly explores the potential of emerging technologies like ChatGPT to enhance the patient experience and resolve billing-related queries promptly.
In summary, Collectly offers hope for medical providers facing complex billing processes and financial challenges. Their innovative solutions streamline payment collection, empowering healthcare organizations to bridge the gap between owed and collected amounts.
With proprietary interfaces seamlessly integrating with healthcare systems, Collectly delivers impressive results, including increased patient collections, reduced collection times, and improved satisfaction. The company’s recent funding success cements its position in the healthcare technology sector, with plans for continued growth and expansion.
As healthcare providers navigate payment collection complexities, Collectly is ready to support their journey towards financial success and improved patient experiences. By harnessing technology and a commitment to innovation, Collectly transforms how medical providers collect payments, one transaction at a time.
First reported on TechCrunch
Frequently Asked Questions
Q. What is Collectly, and how does it aim to revolutionize payment collection in the healthcare industry?
Collectly is a Pasadena-based company founded by Levon Brutyan and Max Mizotin. It aims to revolutionize the payment collection process for medical providers, especially for solo or small practices lacking resources for electronic billing. By seamlessly integrating with electronic health records and practice management software, Collectly enhances patient billing operations and automates various aspects of the payment collection workflow.
Q. Why is payment collection a persistent challenge for medical providers in the healthcare industry?
Medical providers face challenges in payment collection due to confusing healthcare bills and the potential for lost or overlooked paper bills. In 2021, medical providers collected only about 55% of the amount they were owed, a significant decrease from the previous year’s 76% collection rate. Patient responsibility continues to grow annually, putting financial strain on hospitals and medical practices. With a substantial portion of patient payments remaining uncollected, healthcare organizations face further financial challenges, especially those operating on narrow profit margins.
Q. How has Collectly’s technology improved payment collection for medical providers?
Leveraging technology, Collectly has enabled medical group partners using its platform to achieve a remarkable 75% increase in patient collections on average. The “days sales outstanding” metric, measuring the average days to collect payments, has been reduced from 60-90 days to an impressive 12 days. These improvements not only contribute to enhanced financial outcomes but also result in a remarkable 93% patient satisfaction score, crucial for patient retention.
Q. When did Collectly begin its journey, and how has it evolved since then?
Collectly’s journey began in 2017 as a digital debt collection startup. However, after participating in the prestigious Y Combinator program and raising $1.9 million in funding, the company pivoted its focus towards automating and streamlining billing operations as a patient financial engagement company. Since then, Collectly has grown significantly, engaging over 300,000 patients daily and consistently increasing its revenue year over year.
Q. What recent funding milestone has Collectly achieved, and how will it use the capital?
Recognizing its impressive growth and profitability, Collectly recently closed a $29 million Series A funding round, led by Sapphire Ventures, with participation from prominent investors. This brings the total capital raised by Collectly to an impressive $34.1 million. The company plans to utilize the newly acquired capital to enhance its technology and product offerings, ensuring that medical providers can continue to benefit from cutting-edge solutions. Additionally, Collectly aims to double its team’s size by the end of the year, enabling the company to scale its operations and provide even greater support to its growing customer base.
Q. How does Collectly plan to address the evolving needs of healthcare providers and patients?
Collectly aims to roll out new products focused on pre-service modules and in-person payments, catering to the evolving needs of healthcare providers and patients. By staying at the forefront of emerging technologies, such as ChatGPT, Collectly seeks to harness the power of artificial intelligence to enhance the patient experience and promptly resolve billing-related queries.
Q. What implications does Collectly’s success have for the healthcare technology sector?
Collectly’s impressive results and recent funding success solidify its position as a key player in the healthcare technology sector. As the company continues to grow and expand, it showcases the importance of innovative solutions for payment collection in the healthcare industry. Other healthcare technology companies may look to Collectly as a model for success and inspiration in developing similar transformative solutions.
Q. How can Collectly’s solutions benefit medical providers and patients in the long term?
Collectly’s streamlined payment collection solutions can significantly benefit medical providers by increasing collections, reducing collection times, and improving financial outcomes. Patients, on the other hand, can enjoy a more seamless billing process, leading to increased satisfaction and retention. By empowering healthcare organizations with technology-driven payment collection tools, Collectly contributes to improved financial success and enhanced patient experiences in the long term.
Q. How can healthcare providers avail Collectly’s services and integrate their systems?
Healthcare providers interested in leveraging Collectly’s payment collection solutions can explore partnership opportunities and reach out to the company to discuss integration options with their existing electronic health records and practice management software. By seamlessly integrating Collectly’s technology, medical providers can benefit from streamlined billing operations and improved financial outcomes.
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