A New Collaboration to Improve Healthcare Financing
Healthcare financing company PayMedix has joined forces with care and benefits platform XO Health to enhance healthcare payment solutions for self-insured employers, third-party administrators, and value-based care providers.
Announced on February 4, this partnership grants XO Health’s network access to PayMedix’s healthcare financing system, which aims to simplify billing, improve affordability, and reduce administrative complexities.
“Our mission has always been to make healthcare more accessible and affordable while removing the burden of bill collection from providers and streamlining the process for patients,” said Tom Policelli, CEO of PayMedix. “Partnering with XO Health aligns perfectly with this mission, allowing us to reshape how people access and pay for healthcare.”
Interest-Free Payment Plans and Cost Reduction
Under this collaboration, XO Health members will benefit from PayMedix’s interest-free payment plans, covering all in-network medical expenses up to the patient’s out-of-pocket maximum. The integration is designed to lower costs and minimize inefficiencies in healthcare administration.
Policelli has previously highlighted the advantages of PayMedix’s financing model, which provides credit to all employees at a participating employer, regardless of their credit history. Unlike traditional healthcare buy now, pay later (BNPL) options, PayMedix covers the full out-of-pocket amount on behalf of the patient and pays providers directly.
“Our approach is different from standard BNPL solutions,” Policelli explained. “Instead of underwriting individual transactions each time a consumer interacts with the healthcare system, we consolidate everything into one universal, revolving payment plan. Managing multiple short-term BNPL loans for various medical expenses simply isn’t practical.”
Addressing Payment Challenges in Healthcare
The healthcare payment landscape continues to face challenges, with delayed payment processing and claim approvals causing financial strain for providers. A recent study revealed that while 80% of healthcare firms recognize the importance of automating payment workflows, only 53% have implemented effective solutions. As a result, 84% of organizations report financial losses due to outdated accounts receivable processes.
By integrating PayMedix’s financing capabilities with XO Health’s care platform, this partnership aims to address these industry-wide inefficiencies. By simplifying the payment process and ensuring providers are paid promptly, PayMedix and XO Health are setting a new standard for how healthcare costs are managed.
