CarePayment Receives Commitment from Wells Fargo
CarePayment expanded its funding agreement with Aequitas Capital to include a total of $200 million of senior debt, supported by $100 million in new financing from Wells Fargo. Wells Fargo is the second of the four largest U.S. banking institutions to provide financing to Aequitas Capital for CarePayment in less than 12 months, supplementing the $60 million credit facility from Bank of America Merrill Lynch, announced last May.
After exponential growth in 2014, CarePayment is seeing demand accelerate even as it prepares to roll out new features and payment products in 2015. CarePayment will draw on the multi-year warehouse securitization facility from Wells Fargo to support this fast-growing demand for its patient financing solutions, which feature payment options with 0.00% APR for the life of the account and no hidden fees or impact on credit reports.
CarePayment more than tripled the number of medical facilities featuring its affordable patient financing to nearly 500 last year. They include Emory Healthcare and DeKalb Medical in Georgia, Michiana Hematology Oncology in Indiana and Longmont United in Colorado as well as Blue Mountain Health, Excela Health and Crozer-Keystone Health in Pennsylvania.
Health systems, hospitals, physician practices and other healthcare organizations are turning to CarePayment as more patients struggle to cover their high deductibles and other rising out-of-pocket medical expenses. Nearly half, or 46%, of Americans say basic medical care costs are a hardship, compared to 36% a year earlier, according to a December 2014 New York Times/CBS News poll. One in four admit skipping medication and 31% avoided needed treatment because they couldn’t afford it.
“The financing from Wells Fargo is a strong vote of confidence for CarePayment and our expanding patient financial engagement programs. We feature a practical, flexible solution for overcoming the healthcare affordability gap,” says Craig Hodges, CarePayment CEO. “With the rise of healthcare consumerism, our financing options also satisfy the higher expectations of patients who want providers to help them cope with financial as well as clinical matters of care.”