The next time someone complains about a “brain drain” siphoning young talent out of the region, I’ll counter with an entrepreneur named Bill Marvin.
He’s the president and CEO of InstaMed, a Center City firm involved in the often-maddening world of health-care payments processing.
Yesterday, InstaMed said that it had closed on a $6 million financing - its fourth round of investment since it was founded in 2004.
This is the second company Marvin has started since graduating from the University of Pennsylvania in 1992 with a bachelor’s degree in economics. The first was CareWide Inc., a maker of electronic billing systems for doctors, which was bought in 2001.
After CareWide, Marvin worked for the consulting firm Accenture on transaction-processing projects involving health insurers. He also worked with the Treasury Department after the law known as the Medicare Modernization Act was passed, creating health savings accounts.
Consumer-directed health care often means we pay more through higher copayments or deductibles before insurance kicks in.
Marvin said it was obvious to him that it was becoming harder for doctors and hospitals to keep track of the part of the bill that was the patient’s responsibility.
He and fellow Accenture executive Chris Seib started InstaMed to apply the efficiencies of electronic payment processing to the paperbound health-care system. The goal was to speed up payment and help doctors and insurers limit the amount of time spent preparing, printing and mailing bills and checks to patients.
Last September, InstaMed said it had processed more than $1 billion in payments. That figure has now risen above $2.5 billion.
Privately held with 60 employees, InstaMed doesn’t disclose its financials. Like any credit-card processor, it gets a tiny slice of each transaction it handles, as little as 5 cents.
But there’s a lot of growth potential in those pennies. In all, InstaMed has raised $15 million from its investors, including Osage Partners, of Bala Cynwyd, and Ashby Point Capital, of Arnold, Md., which participated in the latest financing.