Collectly, the pioneering patient financial engagement software for medical groups, today announced the closing of a $29 million Series A funding round led by Sapphire Ventures. This latest investment brings the total capital raised to $34.1 million. YC, Wayfinder Ventures, Burst Capital, Cabra VC, and Davidovs VC also participated in the round.
As the healthcare financial landscape grows increasingly complex, this raise will aid medical groups, billing and revenue cycle management (RCM) companies, as well as hospital and health systems to regain control with Collectly's patient financial engagement software.
Data reveals that providers collect only about 55% of what they are owed, due to inefficient payment processes, while patients often grapple with unexpected or unaffordable bills. With patient payments projected to account for more than 35% of medical provider revenue, up from approximately 5% in 2000, modernizing patient billing systems is more important than ever.
Launched in 2017 by Levon Brutyan and Max Mizotin, Collectly aims to bridge the disconnect between providers and patients. The company estimates that in 2023, medical providers will fail to collect an estimated ~$200B, primarily due to manual collection workflows. Collectly addresses this issue by introducing an end-to-end billing workflow that streamlines patient engagement and payment processes.
The platform has already showcased exceptional performance, improving patient collections by 75%, reducing Days Sales Outstanding (DSO) to 12 days (versus up to 90+ days), and achieving a 93% patient satisfaction score.
"There are thousands of medical groups across the United States. At Collectly, our mission is to ensure that all healthcare organizations, irrespective of size, have access to cutting-edge financial engagement solutions," said Levon Brutyan, CEO and Co-Founder of Collectly. "With Sapphire Ventures and our other investors at our side, I am confident we can truly transform the industry."
“The healthcare payments system is broken. The process is outdated and as a result, is hurting providers and patients alike. Collectly’s intuitive, innovative software platform is bringing patient billing into the modern age, making it easier for medical groups to collect payments and empowering patients to understand and pay their bills. Sapphire Ventures is thrilled to partner with co-Founder and CEO Levon Brutyan and the entire Collectly team as it transforms this massive and critical industry,” said Paul Levine, Partner at Sapphire Ventures, and Collectly’s newest board member.
This funding will fuel the enhancement of Collectly's patient financial engagement software and the company's market expansion. Collectly plans to meet the evolving needs of its rapidly expanding base of partners, including medical groups and healthcare organizations that otherwise lack sophisticated patient financial management in-house. Collectly has demonstrated exceptional performance, engaging over 300,000 patients daily and growing over 3x year-over-year. With plans to double its team size by the end of the year, Collectly continues to show tremendous potential.
Collectly is a patient financial engagement software founded in 2017 by Levon Brutyan and Maxim Mizotin. By integrating proprietary interfaces with EHRs and PMs, Collectly optimizes patient billing operations, helping medical groups to increase cash flow, reduce DSO, and improve patient retention. The company is based in Santa Monica, CA. For more information, please visit https://www.collectly.co/