ServiShare, a subsidiary of the Iowa Hospital Association, is partnering with fintech company PayZen to offer no-interest patient loans within the association's network of 117 community hospitals and 17 health systems.
All patients at Iowa hospitals offering PayZen who apply are automatically approved for the San Francisco-based company's zero-interest, no-fee payment plans without a credit check, according to an Aug. 9 PayZen news release. Payment options are determined by an AI algorithm that analyzes more than 30,000 financial data points to present customized monthly installments and terms up to 60 months.
PayZen said it consistently produces 30 percent increases in patient collections with no recourse, leading to accelerated cash flow, reduced delays in accounts receivable and improved bottom lines for providers.
The partnership comes after a June Kaiser Family Foundation report found that Iowans owe an average of $582 in medical debt and more than 10 percent of the state's residents have medical debt in collections, according to the news release.
"Rural providers are under immense pressure to deliver quality care with limited resources, but with PayZen's unique approach to solving patient affordability, we can provide personalized financial solutions for all Iowans looking to access affordable healthcare across our member hospitals," Iowa Hospital Association Vice President Perry Meyer said in the news release.