Durham startup PatientPay, which provides cloud-based online billing services to physicians and healthcare systems, has raised $2.5 million in venture capital to expand its sales and marketing efforts and extend the capabilities of its software.
The latest infusion of cash, which was led by Silicon Valley venture capital firm Mosaik Partners, boosts PatientPay’s total funding from outside investors to $6 million.
Founded in 2008, PatientPay says its online billing services can be integrated with a physician’s practice management software and significantly reduces the cost of managing bills and patient balances.
“It’s very easy for a practice to adopt,” said Steve Friedman, the company’s vice president of marketing.
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As for consumers, “we have developed a way for people to pay their bills by clicking ‘pay now’ in an email,” Friedman said. “It’s very simple.”
The privately held company, which has a dozen employees, doesn’t disclose revenue or the size of its customer base. The new funding will enable the company to expand its sales, marketing and business development staff, but it isn’t saying how many people it anticipates hiring.
Venture capitalist Miles Kilburn of Mosaik said in a news release that “PatientPay represents a disruptive force in the way healthcare out-of-pocket payments are handled.”
In the healthcare industry, 98 percent of bill payments currently are paper transactions, Friedman said.