HPS/PayMedix announced it has closed $33 million in combined equity and debt financing to accelerate national growth of PayMedix, its healthcare financing and payments platform designed to simplify how consumers and providers manage medical bills.
The transaction includes a $16 million growth equity investment led by HLM Investment Partners, with participation from Escalate Capital Partners and RVM Enterprises, alongside existing investor SV Health Investors. As part of the financing, HLM Partner Michael Ludwig will join the HPS/PayMedix board.
The remaining $17 million was structured as a new term debt facility provided by Escalate Capital Partners, which focuses on private credit and growth investments in technology, software, services, and healthcare.
HPS/PayMedix positions PayMedix as a platform that aligns payors, providers, and members through a single system. The company said its model supports providers through guaranteed payments while offering consumers interest-free financing options, alongside tools intended to consolidate healthcare information and billing into a more streamlined experience.
The company said demand has increased over the past year as employers, providers, and payors seek alternatives to address affordability pressures in healthcare. HPS/PayMedix cited performance metrics including years of 100% provider retention, more than 93% employer retention, and consumer satisfaction ratings above 91%.
PayMedix said it has processed more than $7 billion in medical payments for hospital systems and physician practices. The company also pointed to its 2024 acquisition of TempoPay as an expansion point for its interest-free financing capabilities, adding pharmacy, dental, and vision expenses to its platform.
HLM Investment Partners, which focuses on healthcare technology and services, said the investment reflects its view that payment friction and affordability remain core issues for the healthcare ecosystem. SV Health Investors said the new capitalization positions HPS/PayMedix for an expected period of rapid growth.
KEY QUOTES:
“PayMedix is a highly effective platform that streamlines the payment experience for payors, providers, and members. In a time where it is critical to reduce provider abrasion and improve member affordability, we are excited to partner with Tom and the HPS/PayMedix team to accelerate growth.”
Michael Ludwig, Partner, HLM Investment Partners
“As employers, providers, and payors look for alternative financing and payment solutions to deal with the affordability crisis in healthcare, demand for PayMedix has skyrocketed in the last year. With years of 100% provider retention, over 93% employer retention, and consumer satisfaction ratings over 91%, we have proven that we have created a solution that provides value across the board. This new investment will directly support expanding our platform so more patients can get the care they need and providers can serve their communities more effectively.”
Tom Policelli, CEO, HPS/PayMedix
“We are pleased to partner with knowledgeable healthcare investors to capitalize the company for a period of rapid growth.”
Tom Flynn, Managing Partner, SV Health Investors
