With the acquisition, innovative healthcare payment solutions offered by InstaMed will use JPMorgan’s payment capabilities to provide an easier and more convenient system.
US-based investment bank JPMorgan Chase has closed the acquisition of InstaMed, a healthcare payments industry.
With the completion of the transaction, InstaMed is set to operate as a subsidiary of JPMorgan Chase Bank, and the transaction would benefit clients of both the parties.
The acquisition would enable InstaMed to use JPMorgan’s payment capabilities and strengthen its innovative healthcare payments solution and create a better experience for providers, payers, and consumers, for an easier and more convenient system.
In addition, the transaction would also boost electronic healthcare payment transactions, eliminating the use of paper and manual processes, and provides a simple and convenient healthcare payment experience for consumers.
JPMorgan Chase healthcare payments head Stuart Hanson said: “The healthcare payments space is poised for disruption. Together with InstaMed, we are able to design and deliver the future of healthcare payments to providers, payers, and consumers.
“Investing in a complete payment and remittance management solution reflects our commitment to the healthcare payments industry and to provide new, innovative offerings that make the customer experience better.”
According to JPMorgan, InstaMed offers better connectivity across the healthcare marketplace through its network of more than 50% of all healthcare providers with millions of consumers in the US.
In addition, a broad range of healthcare clients including all types of provider organisations, payer organisations, third-party administrators and Blues plans, and healthcare consumers use InstaMed solutions.
InstaMed co-founder and CEO Bill Marvin said: “We have received a warm welcome from the JPMorgan Chase family. The two organizations share a passion for healthcare. There are tremendous opportunities to leverage InstaMed’s industry expertise, experience, and technology in healthcare payments with JPMorgan Chase’s scale and resources.
“We are excited to accelerate innovation, expand our consumer reach, and continue to grow the InstaMed Network and see the impact it will have on our clients and the industry as a whole. The InstaMed team is ready to build the future of healthcare payments together with JPMorgan Chase.”
For the transaction, JP Morgan Securities served as financial advisor and Wachtell, Lipton, Rosen & Katz served as legal counsel for JPMorgan Chase. Financial Technology Partners and Pepper Hamilton served as financial advisors, and Morgan Lewis & Bockius served as legal advisor for InstaMed management.