| By PR Newswire |
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| March 17, 2009 11:00 AM EDT |
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Company delivers integrated healthcare payment and clearinghouse solutions via a proprietary processing platform and network
PHILADELPHIA and NEWPORT BEACH, Calif., March 17 /PRNewswire/ -- InstaMed, the industry leading healthcare payments network and platform, announced Osage Partners, a Bala Cynwyd Pennsylvania-based venture capital firm, has joined existing InstaMed investors in the company's $6 million growth equity financing. Ashby Point Capital of Arnold Maryland also invested. The financing was led by existing InstaMed investors. InstaMed delivers payment processing and healthcare clearinghouse functions on its proprietary integrated platform and network, with a mission to simplify the healthcare payment process for healthcare providers, payers, banks and patients. InstaMed is headquartered in Philadelphia, Pennsylvania and has technical operations in Newport Beach, California.
The company's total addressable market in healthcare payments is over $18 billion per year and growing as healthcare payments shift to consumers, and nationwide healthcare spending continues to increase. InstaMed has successfully commercialized its solutions among a diverse group of channel partners that include software vendors, billing services, healthcare payers and financial institutions. InstaMed delivers dramatic revenue, operating and convenience improvements to patients and to healthcare providers, which include health systems, community hospitals, laboratories, large group practices and solo practitioners. All of InstaMed's technology and operations are owned and built from the ground up to integrate healthcare and payment processing, enrollment, boarding, implementation, servicing, compliance and regulatory requirements. InstaMed is the first and only organization to be PCI Level One Service Provider certified by Visa and MasterCard as a payment processor and fully accredited by EHNAC as a healthcare clearinghouse.
"We believe InstaMed offers a unique investment opportunity as an exciting company in a high growth sector," said Nate Lentz, Managing Partner of Osage Partners. "The company is emerging as the leader in the market for integrated healthcare and financial processing and is well positioned to capitalize on the growing market opportunity presented by the increase in consumer healthcare payments."
"InstaMed has built a unique payment processing infrastructure for healthcare and has demonstrated that its channel partner strategy and business model work with financial networks, banks and other payment related entities. We believe this will be a powerful technology and new business model for healthcare," said Bill Westervelt, General Partner of Ashby Point Capital. Bill Westervelt co-founded First Annapolis Consulting in 1991 and is a leading expert in the payment systems industry with over 30 years of operating and advisory experience in all facets of the payments industry.
Bill Marvin, President and CEO of InstaMed, commented on the transaction, "InstaMed is excited that Osage and Ashby Point have joined our team. With access to this additional growth capital and no debt, we plan to enhance our channel go-to-market strategy and accelerate the adoption of our solutions in the market."
Lentz is joining the InstaMed Board of Directors and Westervelt is joining the InstaMed Board of Advisors.
About InstaMed
InstaMed is the industry leading healthcare payments network and platform. InstaMed's mission is to transform the healthcare payment process for healthcare Providers, Payers, Banks and Patients so their payment experience is simple, convenient, reliable and secure. InstaMed processes all of the healthcare and payment transactions in the healthcare revenue cycle and offers patent pending, integrated healthcare and payment transactions that accelerate the healthcare payment process and reduce the administrative costs to all parties. InstaMed currently supports the healthcare payment processing needs of over 700 hospital and clinic locations; practice management vendors and billing services representing over 50,000 providers; and hundreds of healthcare payers of all sizes. InstaMed is a registered TPP with Visa and MasterCard and is Payment Card Industry Level One certified and fully accredited by the Electronic Healthcare Network Accreditation Commission as a healthcare clearinghouse. InstaMed is an AHIP Solutions Partner (America's Health Insurance Plans), a member of the C.O.R.E. Initiative (Committee on Operating Rules for Information Exchange), the Medical Banking Project, ASC X12, HBMA (Healthcare Billing & Management Association), Electronic Payments Network ACH Association Services, MGMA's Project SwipeIT (Medical Group Management Association) and WEDI (Workgroup for Electronic Data Interchange). Visit InstaMed on the web at www.instamed.com.
About Osage Partners
Osage Partners is a leading provider of venture capital to early stage technology and healthcare companies in the Mid-Atlantic region. Initial investments range from $1-2 million. Additional information is available at www.osagepartners.com.
About Ashby Point Capital
Ashby Point Capital is a small private equity firm whose mission is to make investments in growth companies within the payment systems and financial services industries. The firm is stage agnostic and will invest in both early and later stage growth opportunities, making investments ranging from under $100,000 to over $5 million. Additional information is available at www.ashbypointcapital.com.
SOURCE InstaMed
