PayMedix Secures $33M to Combat Healthcare Affordability Crisis

MILWAUKEE, WI – January 13, 2026 – Healthcare financing firm HPS/PayMedix has closed a significant $33 million funding round to accelerate the national expansion of its platform, which is designed to address the deepening healthcare affordability crisis in the United States. The investment consists of $16 million in growth equity and $17 million in debt financing.

The equity round was led by HLM Investment Partners, a prominent healthcare-focused investment firm. They were joined by Escalate Capital Partners, RVM Enterprises, and existing investor SV Health Investors. The new debt facility was provided by Escalate Capital Partners, signaling strong confidence from firms specializing in high-growth technology and healthcare companies.

This capital injection arrives as PayMedix experiences what it calls “skyrocketing demand” for its solutions, which aim to simplify the convoluted and often stressful process of paying for medical care for patients, providers, and employers.

A Market Ripe for Disruption

The investment lands squarely in the middle of a worsening healthcare affordability crisis in America. Recent studies paint a stark picture: a record 35% of Americans, or approximately 91 million people, reported in 2025 that they could not access quality healthcare if needed. This crisis is fueled by rapidly rising out-of-pocket costs, which reached an average of $1,514 per person in 2023. For many, even those with employer-sponsored insurance, a single major health event carries the fear of financial ruin.

This financial strain creates a difficult environment for all parties. Patients are often confronted with a confusing blizzard of bills from different providers, making it difficult to understand what they truly owe. The financial pressure leads many to delay or forgo necessary medical, dental, and vision care. Consequently, healthcare providers face their own financial pressures, struggling with the administrative burden and high costs of collections, which can impact their ability to serve their communities effectively.

The industry is responding with a shift toward consumer-centric financial tools, mirroring trends in retail and banking. Patients increasingly expect digital convenience, price transparency, and flexible payment options. This is the landscape PayMedix aims to reshape, positioning itself not just as a payment processor, but as a financial solution to a systemic healthcare problem.

A Three-Pronged Solution to a Complex Problem

At the core of the company's strategy is a platform built to benefit all stakeholders. For consumers, the cornerstone of the experience is the patented SuperEOB®, a single, consolidated monthly statement that combines all in-network medical bills for an individual or family. This innovation replaces multiple, often confusing explanation of benefits (EOB) forms and provider invoices with one simple, itemized bill, clarifying exactly what is owed.

Coupled with this simplified billing is the company's most significant feature: complete, interest-free financing for all in-network medical expenses. Crucially, access to this financing is credit-neutral, meaning a patient’s credit history does not determine their eligibility. This directly addresses a major barrier to care, as a significant portion of the population might not qualify for traditional medical credit cards or loans. By removing interest charges and credit checks, the platform aims to ensure that cost is not the primary determinant in a patient's decision to seek care.

For providers, PayMedix offers guaranteed payment for services rendered, effectively eliminating collection risks and reducing administrative overhead. This guarantee stabilizes revenue cycles for hospitals and clinics, allowing them to focus on patient care rather than payment disputes. This model has resulted in impressive performance metrics, with the company reporting 100% provider retention and over 93% employer retention.

“As employers, providers, and payors look for alternative financing and payment solutions to deal with the affordability crisis in healthcare, demand for PayMedix has skyrocketed in the last year,” said Tom Policelli, HPS/PayMedix CEO. “With years of 100% provider retention, over 93% employer retention, and consumer satisfaction ratings over 91%, we have proven that we have created a solution that provides value across the board. This new investment will directly support expanding our platform so more patients can get the care they need and providers can serve their communities more effectively.”

Investor Confidence Signals a Broader Shift

The $33 million investment is more than just capital; it's a powerful vote of confidence from seasoned healthcare investors who see a viable, scalable solution to some of the industry's most entrenched problems. Lead investor HLM Investment Partners has a 40-year history of backing innovative healthcare technology and service companies that improve quality while reducing costs. Their involvement validates the PayMedix model as a key player in the future of healthcare finance.

As part of the transaction, Michael Ludwig, a Partner at HLM Investment Partners, will join the HPS/PayMedix board of directors. “PayMedix is a highly effective platform that streamlines the payment experience for payors, providers, and members,” Ludwig stated. “In a time where it is critical to reduce provider abrasion and improve member affordability, we are excited to partner with Tom and the HPS/PayMedix team to accelerate growth.”

The participation of Escalate Capital Partners, which provides both debt and equity, and long-time backer SV Health Investors further solidifies this confidence. These firms specialize in identifying and nurturing high-growth companies poised to disrupt their respective sectors. “We are pleased to partner with knowledgeable healthcare investors to capitalize the company for a period of rapid growth,” commented Tom Flynn, Managing Partner at SV Health Investors.

Strategic Growth and an Expanding Footprint

This funding builds on a period of strategic expansion for HPS/PayMedix. A pivotal move was the 2024 acquisition of TempoPay, a platform that offered interest-free financing for a broader range of health and wellness expenses. That acquisition integrated financing for pharmacy, dental, and vision costs directly into the PayMedix ecosystem.

This created a comprehensive financial safety net for employees, covering both routine expenses and major medical bills under a single, unified system. The integration of TempoPay's technology was critical to making the platform's financing options both immediate and uncapped for all in-network charges, further simplifying the user experience and expanding the value proposition for employers seeking to support their workforce.

With over $7 billion in medical payments already processed, the company has a proven track record. The new funding will be deployed to scale these capabilities on a national level, bringing the platform to more employers, hospital systems, and physician practices across the country. As the line between healthcare and personal finance continues to blur, this investment positions HPS/PayMedix to lead the charge in creating a more equitable and accessible system. With this substantial capital infusion, PayMedix is now positioned to scale its model, aiming to prove that financial barriers to healthcare can be systematically dismantled for patients and providers across the country.