InstaMed Scooped Up by J.P. Morgan, with Implications for Haven Healthcare
J.P. Morgan recently acquired an innovative healthcare payment platform called InstaMed. The Philadelphia-based company, purchased for $500 million, was founded in 2004 and has sought to both simplify and integrate healthcare payment processes. InstaMed has been widely successful in these goals, offering a unified platform for consumers, payers and providers to exchange payments.
InstaMed is used by many major insurers: Aetna, Anthem, Blue Cross Blue Shield Association, Cigna, Kaiser Permanente, Optumcare and others. At its outset, InstaMed disrupted the traditional healthcare billing model by providing an online alternative to phone and mail billing. Despite how much healthcare billing providers still require in paper, most customers prefer electronic billing, making it a more consumer-focused approach. Electronic payment is also popular among providers and payers alike as it reduces processing time and costs, enabling quicker payment and payment collections.