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Exclusive: PatientFi gets $25M to finance cash-pay elective procedures

Illustration of stacks of one hundred dollar bills laid in a medical cross shape

Illustration: Annelise Capossela/Axios

PatientFi, a financing platform to help patients pay for out-of-pocket elective procedures, netted $25 million from Questa Capital, CEO Todd Watts tells Axios exclusively.

Why it matters: Private equity has poured money into cash-pay care providers, drawn to the sector's fragmentation and lack of reimbursement pressure.

Of note: Questa's investment represents a minority stake, Watts says.

How it works: Founded in 2017, Irvine, Calif.-based PatientFi partners with cash-pay medical practices to help patients access alternative financing for procedures.

  • It serves providers across plastic surgery, dermatology, dentistry, fertility, audiology and ophthalmology, along with medical device manufacturers.
  • Along with financing, PatientFi also offers loyalty and subscription plans. The company competes with players like CareCredit, Watts says.
  • PatientFi will put funding toward expanding into new specialties, Watts says, declining to disclose further details.

What they're saying: "The industry is still riddled with paper filing and really no advancement in payment technology, with most still essentially being a credit card," says Watts.

  • "There are new clinical products every few years but the financing has been the same since the '90s," he adds.
  • "PatientFi is far more than just a financing company — it offers health care practices and their patients a portfolio of payment solutions," says Bradley Sloan, managing partner at Questa Capital.
  • "This gives health care practices an integrated way to customize their revenue cycle management needs while more effectively engaging with their patients to meet their unique needs," Sloan adds.

Between the lines: While medical aesthetics could be considered a luxury spend, particularly in times of economic uncertainty, the sector has proved relatively resilient during downturns.

  • The industry took a nosedive in 2020 as provider locations shuttered during the pandemic, but growth rates have recovered and since surpassed pre-pandemic performance, per Boston Consulting Group.
  • "We believe that overall demand for the sector including cosmetic plastic surgery will continue to show resiliency across economic cycles," says Sloan.
  • "New product innovations paired with a shift in cultural attitudes about wellness and self-care have made aesthetics more mainstream."

State of play: Last year saw a spate of sponsor-led investments into cosmetic and aesthetic procedure platforms.

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