Simplee, a Palo Alto-based startup trying to remake medical billing, has raised $10 million in a Series B round led by the Heritage Group. The round, which also included previous investors The Social+Capital Partnership and Greylock, brings the company’s total amount raised to nearly $18 million and is intended to help the company attract new enterprise customers and boost product development.
When it launched in 2011, the company offered patients a Mint-like service for tracking and managing their medical expenses. But in the past year, the company has put more attention on an enterprise service that aims to help healthcare providers collect out-of-pocket payments from patients, while giving patients more transparency into their medical bills.
For example, through an integration with Silicon Valley’s El Camino Hospital, Simplee matches a patient’s hospital bill with his insurer’s explanation of benefits (EOB) to resolve charges, explain claims, scan for billing errors and pay bills online.
CEO and co-founder Tomer Shoval has said that his ultimate goal is to provide a ubiquitous PayPal-like service for out-of-pocket medical expenses. As patients increasingly shoulder a greater portion of their medical expenses, the company believes they need better tools for understanding their purchases, while healthcare providers need better mechanisms for processing the volume of payments.
“Patients need to pay a lot more out of pocket and that means providers need to collect a lot more from patients,” said Shoval. “If you connect the dots, that means [providers] have a big pain point.”
The company plans to focus on hospital systems and providers first and, through them, scale its web and mobile payment portal to consumers.