Dive Brief:
- In a move designed to increase its interests in diverse markets, online lending firm Prosper Marketplace has announced it is acquiring American HealthCare Lending in a $21-million deal that will add the Salt Lake City-based company to Prosper's portfolio, according to a company press release.
- American HealthCare Lending has been noted as one of the faster growing companies in the patient finance industry, making it a tasty target for acquisition by Prosper. With a cloud-based patient financing platform, it's a perfect fit for Prosper's online lending model.
- "The healthcare industry is in the midst of a massive transformation that is impacting out-of-pocket expenses for millions of consumers," said Shaun Sorensen, CEO, American HealthCare Lending, in the release. "We are excited about this opportunity to continue to bring positive change to a traditional industry like healthcare lending."
Dive Insight:
The healthcare industry has become the cool kid in town to the financial industry. Healthcare is on a hiring binge, and new investments in healthcare are swelling. And of course, the M&A side of the industry continues to be immensely popular as well.
So it stands to reason that those companies handling the financing of healthcare procedures would grow, too. With the ACA insuring more Americans, healthcare debt is not as big a risk as it used to be, and Prosper did a good job at cherry-picking American HealthCare Lending from the bunch.
We should expect more consolidation within the healthcare finance industry, but let's take note: Patient-centric solutions are driving the digital revolution, so those finance companies wanting to join the cool kids should be aware that their success will not only be rated by how much money they make, but also by how they serve the patients' needs. Healthcare lenders should bear in mind reforms—including but certainly not limited to HHS' efforts—aimed at making patient care and outcomes the center of every element of the healthcare industry.