In a significant move to address the growing concerns of healthcare affordability and payment complexity, HPS/PayMedix has announced its acquisition of TempoPay, an innovative payment solution developed by Redesign Health. This strategic acquisition brings together two complementary services, creating a comprehensive healthcare financing and payment solution that could potentially benefit millions of Americans struggling with medical costs.
The merger comes at a critical time, as recent data from the PayMedix Healthcare Payments and Financial Disparities Study reveals that one-third of Americans find out-of-pocket costs (33%) and deductibles (31%) unaffordable. The situation is even more dire for individuals with lower credit scores, with 40% of those with scores of 669 or less reporting affordability issues. Moreover, the study highlights that over half (52%) of insured Americans experience stress related to medical bill payments, with an overwhelming 92% reporting that this stress affects their physical and mental health.
Tom Policelli, CEO of HPS/PayMedix, emphasized the importance of this acquisition, stating, ‘Healthcare costs are increasingly becoming a disproportionate share of the American household wallet, and we need better solutions to manage the stress this puts on family budgets.’ The combined offerings of PayMedix and TempoPay aim to remove financial barriers that often prevent employees from accessing necessary care when they need it, rather than when they feel they can afford it.
TempoPay’s innovative solution provides interest-free financing for health and wellbeing care that complements existing employer plans. Once activated, employees can use TempoPay VISA® cards to pay for a wide range of health-related expenses, including medical care, prescriptions, vision and dental bills, and even veterinary costs for pets. Employers have the flexibility to set dollar amounts and charge types, while employees can repay their bills over time without interest through payroll deductions or bank account withdrawals.
The integration of TempoPay with PayMedix’s existing services creates a powerful combination that addresses the needs of both employees and healthcare providers. While TempoPay focuses on immediate financing for everyday healthcare expenses, PayMedix offers complete, uncapped financing for all in-network allowed charges. This comprehensive approach ensures that all employees, regardless of their credit history, can access the care they need without fear of financial repercussions.
Brian Marsella, President of HPS/PayMedix, highlighted the potential impact of this acquisition, noting, ‘It’s a fact that 1 in 4 PayMedix members would be unable to get financing for their healthcare based on their credit scores. With TempoPay, we can reach even more members to help them get and stay healthy.’ This expanded reach has the potential to significantly improve health outcomes, particularly for lower-income employees, while also providing cost savings for employers.
The acquisition of TempoPay by HPS/PayMedix represents a significant step forward in addressing the complex issues surrounding healthcare payments and affordability in the United States. By offering a comprehensive, credit-blind financing solution, the combined entity aims to simplify the healthcare payment experience for all stakeholders – patients, providers, employers, and third-party administrators. As healthcare costs continue to rise and impact household budgets, innovative solutions like those offered by HPS/PayMedix and TempoPay may play a crucial role in ensuring equitable access to healthcare and reducing the financial stress associated with medical expenses.
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