Global investment manager Fortress Investment Group provided a $100 million line of credit to Covered Care, a healthcare finance company.
According to the latest figures from the Peterson-Kaiser Health System Tracker, Americans face nearly $400 billion in out-of-pocket healthcare costs annually, which is driving the need for more affordable and universal patient financing options as traditional lenders are tightening approval criteria due to the global pandemic. Covered Care is currently experiencing heightened demand for its offering, which provides access to affordable patient financing for those denied by traditional credit.
“Fortress has a longstanding track record as a financing partner for fast-growing innovators, and this facility will enable us to serve the growing number of people declined for traditional patient financing,” Ken Rees, founder and CEO of Covered Care, said. “There are few things more important than ensuring that every American receives the healthcare they need and that they can pay for it over time, regardless of their credit score. With this financing line, we are able to help healthcare providers scale their businesses and serve more patients.”
According to a recent FICO report and data from the Consumer Financial Protection Bureau, more than half of Americans have a credit score below 700 or no credit score at all. This means they are typically denied access to credit or offered prohibitive interest rates, even for critical and urgent needs such as medical expenses.
“Covered was founded by seasoned industry veterans who have a proven history of building successful, high-growth businesses serving underserved Americans,” Dominick Ruggiero, managing director of Fortress Investment Group, said. “We have been impressed with Covered Care’s unique offering and we are very pleased to support their mission of increasing access to affordable credit at a time of urgent demand.”
