The financial services giant said that the acquisition of InstaMed will grow its suite of payment services, which are specifically designed to cater to healthcare consumers, providers, and payers.
How InstaMed works
Through a healthcare payments network, InstaMed’s centralized platform links healthcare consumers, providers and payers to facilitate digital payments by securely and more efficiently sharing information compared to conventional payment models.
The private cloud-based technology of the company is claimed to securely transform healthcare payments by increasing electronic transactions, moving money and healthcare data seamlessly.
InstaMed co-founder and CEO Bill Marvin said: “We couldn’t be more excited to join the JPMorgan Chase family – combining one of the world’s preeminent financial institutions with the premier technology and talent in healthcare payments.
“Together, we will be able to invest in and expand the InstaMed Network, accelerate our consumer reach, and deepen our commitment to innovation.”
According to JPMorgan Chase, the US healthcare spend, which is more than $3 trillion as per CMS.gov NHE Fact Sheet, is challenged by considerable transaction friction and inefficiency. The financial services giant further said that conventional approaches to bill pay, payment collection, legacy approaches, and reconciliation and others have been slow to modernise, resulting in pain-points throughout the industry.
InstaMed’s platform is said to alleviate the various challenges in the healthcare payments sector, with a particular focus on removing the need of paper, enhancing the consumer financial experience, and lowering costs to collect payments.
InstaMed seen as natural fit to JPMorgan Chase’s Wholesale Payments
JPMorgan Chase Wholesale Payments global head Takis Georgakopoulos said: “With InstaMed, we combine the strength and scale of JPMorgan Chase’s payments capabilities with a leading healthcare payments solution for consumers, providers and payers.
“The InstaMed team is passionate about delivering an excellent client experience with a focus on innovation, keeping data safe and secure, and simplifying the end-to-end healthcare payments process – a natural fit with our Wholesale Payments franchise.”
JP Morgan Wholesale Payments provides domestic and international cash management, liquidity, commercial card, FX, merchant services and escrow solutions.
