In a time where the lines between healthcare and finance are increasingly blurred, one company is standing out: Collectly, a patient financial engagement software platform that announced yesterday it raised $29 million in Series A funding round led by Sapphire Ventures. This brings the company’s total capital raised to an impressive $34.1 million.
Established in 2017 by Levon Brutyan and Max Mizotin — which is when the company was first spotlighted by AccountsRecovery.net — Collectly seeks to bridge the gap between medical providers and patients. The company’s founders anticipate that in 2023, providers will fail to collect approximately $200 billion, largely due to outmoded manual collection workflows. This disconnect is where Collectly comes into play.
Collectly’s approach involves implementing an end-to-end billing workflow that streamlines patient engagement and payment processes. This paradigm shift is already showing promising results: a 75% improvement in patient collections, a reduction in Days Sales Outstanding (DSO) to just 12 days, compared to the traditional 90+ days, and a whopping 93% patient satisfaction score.
Why should this matter to those in the debt collection industry? It’s simple. As the healthcare sector evolves, so too must our approaches to collections. Collectly’s platform is an example of how technology can modernize collections strategies, especially as the volume of patient payments continues to grow. Their success points towards a future where digital, patient-focused solutions become the norm in medical debt collection.
For collectors, this also means a potential expansion of service offerings and new ways to engage debtors. By focusing on patient engagement and streamlining payment processes, Collectly has shown that it’s possible to create a more efficient and effective collection process. For debt collection professionals, it’s a signal to start thinking about how to integrate similar technologies or strategies into their own operations.
The recent funding will be channeled into enhancing Collectly’s patient financial engagement software and the company’s market expansion, signaling a future of rapid growth. Collectly already engages over 300,000 patients daily and plans to double its team size by the end of the year.
With this massive influx of capital and a clear vision of modernizing patient billing systems, Collectly is undoubtedly a company to watch in the healthcare financial landscape. It serves as a stark reminder for all of us in the debt collection industry that innovation and adaptation are essential as we navigate the ever-evolving realm of debt collection.
