Hello all! We're coming to you fresh from Fintech Meetup, which was held in Las Vegas last week and attended by thousands of people from banks, fintechs, platforms, and everything in between. We met so many new contacts and had an all around great show. We're already looking forward to next year, and also to HFMA which will be in Denver at the end of June this year. Hopefully we'll see more of you there.
This issue we're covering a topic that resonates with so many people. Despite everything that makes healthcare different than other industries, one thing that remains true is that patients are consumers too. And they (we!) just want the payment experience to be simple and easy. It's such a cliche, but so true - we just want a "retail-like" experience when it comes to healthcare payments. Embedded payments for healthcare platforms help make this a reality - and have many benefits for ISVs and providers.
We're on a monthly publication schedule now, and that makes it easier to include deal news - lots to cover here including Revco/ Wakefield, ModMed, CareCloud, Banyan, and GreenDot. Thanks for reading and send along tips and news here!
DEAL NEWS
Revco and Wakefield combine in strategic merger
Wakefield & Associates, formerly located in Knoxville, TN and Revco Solutions have announced their strategic merger to create a new RCM company that will operate as Revco Solutions out of Durham, NC. Their press release describes Revco Solutions as a "premier provider of healthcare revenue cycle management services, helping healthcare organizations improve financial outcomes and the patient financial experience." Its services include Insurance Revenue Recovery, Early Out Self-Pay, and Bad Debt Collections. Mark Schabel (Revco) remain as CEO, while Matt Laws, (former CEO of Wakefield) will serve as Chairman of the Board.
We've been aware of this deal since the fall but waited to share the news formally until the public announcement.
Warburg Pincus sells majority stake in ModMed to Clearlake
Boca Raton, FL-based ModMed announced earlier in March that Clearlake Capital Group has made a majority growth investment in the cloud-based health IT platform. Warburg Pincus is selling the position to Clearlake after eight years of ownership in ModMed. The company offers a full range of software and services to providers including EHR, practice management, RCM, patient engagement, and payment processing. Media reports valued the deal including debt at $5.3 billion.
First a little history lesson. Many of you might remember CareCloud as a SaaS EHR based out of south Florida. That was a few years back. Separately, a company called Medical Transcription Billing Corporation (MTBC), based out of Somerset, NJ, was founded in 1999 and built a variety of health IT applications including voice transcription, and EHR, PM and RCM software. MTBC made more than a dozen acquisitions, including CareCloud and Meridian Medical Management in 2020. In 2021, MTBC changed its name to CareCloud.
CareCloud (the old MTBC) had paused M&A since 2021, but announced the acquisition of MesaBilling in early March 2025. CareCloud leadership says that this "sets the stage for a dynamic new era of strategic growth, reinforcing CareCloud’s position at the forefront of the healthcare billing industry". The company says that it serves more than 40,000 providers.
New York-based Bilt Rewards, the company known for creating rewards out of rent payments, announced that it is buying Holmdel, NJ-based Banyan for an undisclosed amount. Banyan will continue to operate independently under the leadership of its CEO, Jehan Luth, while integrating its technology into Bilt’s platform.
The acquisition is strategic for Bilt, as it aims to enhance its neighborhood commerce platform with Banyan’s item-level receipt data, enabling hyper-personalized rewards and automated benefits. The deal will give Bilt access to Banyan's HSA/ FSA data, which could feed new features such as automatic HSA savings.
Several payments companies seeking strategic alternatives
Boston-based Flywire, a leading cross-border, education, and healthcare payments company, has seen lagging performance due to macroeconomic headwinds and other factors including limitations on students visas and a decline in U.S. higher education growth. The company recently cut 10% of its workforce, and rumors are circulating that the Board is seeking a buyer.
Green Dot (consumer website here) was founded in 1999 to focus on prepaid debit cards for teenagers, and later pivoted to serve the unbanked and underbanked populations. Today the company offers prepaid debit cards, checking accounts, and mobile banking services. It has been hurt by lower-cost competition, and regulatory/ compliance challenges among other issues. Its stock has declined from a high of over $90 in 2018 to $7 last week.
The company's second CEO in 5 years departed on March 10, and the company announced it has hired Citigroup to explore potential strategic alternatives.
Embedded payments involve the seamless integration of payment processing capabilities directly within a platform or software application, enabling users to conduct financial transactions without leaving the interface. In the healthcare sector, this translates to patients paying for services directly through their healthcare provider's platform, streamlining the payment process and enhancing the overall patient experience.
Current State of Embedded Payments in Healthcare
The global market for overall embedded finance solutions – including embedded payments – is projected to reach $700 billion by 2033 with an impressive CAGR of 24%. According to a recent study, 54% of ISVs across various industries enabled payments acceptance within their platform in 2023. Adyen and BCG data indicates that 40% of SMBs are interested in embedded financial services from their platform.
Historically, the healthcare industry has been slower to adopt embedded financial technologies compared to other sectors. This hesitation stems from the overall slow pace of technology adoption in healthcare, healthcare-specific rules around patient data and other regulatory concerns, complex medical billing systems, and the large percentage of provider revenues that still come from insurers.
We expect a significant shift as healthcare ISVs increasingly recognize how embedded payments can improve the patient experience, create smoother reconciliation from multiple payment sources, reduce aged AR and administrative burden for practices, and deliver other important benefits for their provider customers, patients, and their own businesses.
Healthcare Example: ModMed
ModMed, a leading EMR, practice management and billing system for specialty providers, has successfully integrated embedded payments to enhance its service offerings. President and COO Joe Harpaz stated, "As a provider of modern cloud platforms, we needed a payments platform that could fully integrate into our entire suite of cloud software offerings and scale with the size of our customer base." This strategic move has allowed ModMed to offer a more streamlined payment process, improving both provider efficiency and patient satisfaction.
Addressing Healthcare-Specific Pain Points
Implementing embedded payments in healthcare addresses several industry-specific challenges:
Improved Patient Experience: Patients benefit from a seamless payment process that meets them where they are and is identical to what they experience at Amazon, Starbucks, Target and other online and retail locations they frequent regularly.
Simplified Reconciliation: Healthcare providers can more easily reconcile payments from multiple sources, such as insurance companies and patients, leading to more accurate financial records.
Reduction in Aged Accounts Receivable: By streamlining the payment process, providers can reduce the time it takes to collect payments, thereby decreasing aged AR and improving cash flow.
Decreased Administrative Burden: Integrated payment systems reduce the need for manual data entry and additional coordination with external payment processors, allowing staff to focus on patient care.
Strategic Advantage for ISVs
ISVs can gain significant strategic and financial advantages by embedding payment solutions tailored to the specific needs of healthcare providers. Adam Gray, Chief Transformation Officer of Stax, recently told PYMNTS that “Software companies are under a lot of pressure from their investors to find new revenue streams and find that growth, but still meet the needs of their customers and keep that front and center.” By embedding payments, healthcare ISVs can achieve this balance.
CFPB NEWS
In 2024 we covered the CFPB since the agency appeared on the brink of enacting significant changes to credit card late fees and reporting of medical debt, among other new rules impacting a broad swath of U.S. consumers.
The new Trump administration as most everyone knows by now has aggressively targeted agencies such as the CFPB that it sees as illegitimate and/or in opposition to its policy goals. The CFPB falls squarely in both categories, and despite some setbacks in the courts, the CFPB at a minimum has been dramatically changed by the appointment of new leadership, the removal of many employees, the decision not to pursue certain rules that had not been finalized/ were under appeal, and stated efforts to repeal Biden-era rules that do require a more formal process.
For anyone interested in digging deeper into the fate of the CFPB, and implications for our banking, financial, medical debt, and consumer-oversight sectors, here are several good reads:
EHR vendors turn to artificial intelligence to modernize health records. Software companies like Epic and Oracle say they’re weaving AI into clinicians’ workflows to meet client demand, keep up with competitors and improve the productivity of a swamped healthcare system. (Healthcare Dive)
Click here to read our latest CEO Chat with Bob Bowdon, CEO of Houston, TX-based VerityPay.
WHAT WE'RE READING
Stripe Says AI Boom Drove 38% Increase in Payment Volume. Co-founders Patrick Collison and John Collison write in their annual letter that Stripe’s investments in machine learning and artificial intelligence contributed to the financial infrastructure platform’s rapid growth in 2024. (PYMNTS)
Tech resilience for healthcare providers: Inaction has a heavy toll. Cyberattacks and tech outages at provider organizations have reached an all-time high. To stem the tide, providers need strong plans to prevent, detect, and recover from attacks and disruptions. (McKinsey)
Worldwide card use to jump 43% by 2029, Nilson predicts. Nonetheless, credit, debit and prepaid card transactions will expand at the slowest rate in the U.S., relative to other regions in the world, the research firm Nilson Report forecast. (Payments Dive)
ADDITIONAL RESOURCES
FMP Deal Tracker. Regularly updated list of healthcare payments related transactions since November 2023.
Conference List. Rolling twelve month look ahead at conferences and other events covering healthcare payments, revenue cycle, fintech and related areas. Updated through September 2025.
FMP Blog. Thoughts from healthcare payments CEOs and investors on their right to win and plans for the next 12 months, as well as data and perspectives on healthcare payments.
Newsletter Archive. News, trends, and insights from the healthcare payments industry compiled in our bi-weekly newsletter. Last six months of newsletters.
Epic MyChart. Excel sheet with full listing of all Epic MyChart instances as of May 2024, categorized by state, provider type and specialty.
All of these resources can also be accessed at the FinMed Partners Insights page.
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FinMed Partners is a management consulting and advisory business focusing at the intersection of payments/ fintech and healthcare. Our founders have developed deep expertise from decades of experience with health IT companies, healthcare providers and many players within the payments ecosystem. Investors, boards and executive teams work with us to maximize business value through strategic input and tactical execution.
FinMed Partners LLC, 34 Long Avenue, Belmont, MA 02478, United States
