Many of our readers know the FinMed Partners team. For those we have not had the pleasure of meeting, we are Henri Cattier and David Stievater, veterans of payments, health IT and revenue cycle management (see bios here).
We founded FinMed Partners because we saw a need for our expertise at the intersection of payments/ fintech and healthcare. We combine deep healthcare experience with specialized knowledge of revenue cycle and the payments ecosystem. Banks, fintechs, health tech vendors, providers and investors utilize our go-to-market and commercial diligence services. Our industry relationships - built over 40+ years in these markets - continue to grow and are the "force multiplier" for our work. Over 2,000 of you already receive this newsletter, and we could not be more grateful for the support you have all given as we launch our new venture.
We are looking forward to seeing some of you in Nashville this week. Keep the good vibes coming and please share any thoughts for topics you'd like to see us cover in this newsletter. Now read on for our take on recent trends in the dental market, and updates on industry news and deals...
DEAL NEWS
KeyCorp invests in dental revenue cycle platform
After a flurry of healthcare payments related deals we reported last issue, things quieted down over the past couple weeks. We did notice (very appropriate, given our focus on dental this issue) KeyCorp's announcement of its strategic relationship and minority investment in San Francisco-based Zentist. Zentist provides cloud-based revenue cycle management services for DSOs. KeyBank will introduce Zentist's software to its DSO customers.
Los Angeles-based Mangomint, a provider of booking and management software for salons and spas including Med Spas, announced earlier in September that it raised $35 million in a Series B equity investment. The round was led by Altos Ventures with participation from SaaStr Fund and OpenView Venture Partners. The company also added $12 million in venture debt from Avidbank. Mangomint offers clients fully integrated Mangomint Pay with a variety of customer-friendly payment options and an attractive 2.45% in-person rate.
Nym raises $47 million equity investment for automated coding
And in late breaking news, New York-based Nym announced October 1 that it has raised a $47 million equity round led by PSG. (We first met Nym at HFMA back in 2019 when they were a tiny startup!) The company's platform automates medical coding in order to reduce "human error, labor shortages, backlogs, and delayed payments" arising from the manual nature of today's coding process. Google Ventures, Addition, Samsung Next and Dynamic Loop Capital participated in this round as well. In addition to its New York HQ, Nym has an R&D center in Tel Aviv.
Cherry exploring asset-backed bonds for cosmetic surgery
San Francisco-based Cherry is looking at a bond issuance to back Buy Now Pay Later (BNPL) consumer loans for cosmetic surgery, dental or medical aesthetics. According to Bloomberg, the company is meeting with investors to gauge interest in creating an asset-backed class of bonds to finance its lending. The cosmetic surgery market has continued to see strong demand, and as a result, consumers continue to finance procedures which is fuel demand for BNPL and other loans.
Cherry investors include DCM Ventures and Kleiner Perkins. The bond offering is reportedly being explored with Barclays.
Innovative financing solutions and improving access to dental care
Rising cost of dental care reduces accessibility
Dental care costs have risen by over 30% since 2000, presenting a significant barrier for many Americans seeking routine dental services. This financial burden has led to a notable trend: across races, ethnicities, and income levels, adult Americans are increasingly opting out of annual dental care due to cost. In fact, more than one in three adults over the age of 18 did not receive a dental exam or cleaning in 2023, while during the same time 85% of adults made a doctor visit. This disparity begins to highlight a critical issue in oral health access.
Additionally, according to the most recent data from 2019, 18.6% of adults aged 18-65 reported not receiving dental care due to cost—a figure that has been steadily increasing since 1997, when only 10.6% cited financial constraints. This alarming trend further indicates a growing gap in dental care access and underscores the urgent need for solutions that make dental services more affordable.
Dental landscape is shifting dramatically
Simultaneously, the rising costs of dental care and the barriers they create are also reshaping the dental practice landscape. Due to operational costs, droves of newly minted dentists and many dentists formerly in solo practices have opted to work for Dental Support Organizations (DSOs). In 2017, only 8.8% of U.S. dentists were affiliated with DSOs; however, by 2023, that number has climbed to 14%. This shift indicates a consolidation in the industry, as solo practitioners represented 65% of all practicing dentists in 1999 compared to only 46.2% in 2021. The growing influence of DSOs reflects broader economic challenges within the profession.
Changing dynamics create challenges in delivering care
With these crosswinds facing dentists and patients alike, dental offices are looking for creative ways to attract and retain patients who can ultimately pay for care. Accomplishing this goal is getting harder to do even with patients who have dental insurance coverage given that this coverage typically includes preventative care, but is more limited for other, more expensive procedures.
For patients without dental insurance, subscription-based membership plans can also attract patients to a network of dental practices. DSOs, like Aspen Dental, may even offer their own internal membership programs. By paying annual membership fees that accelerate upfront revenue for the practice, patients can receive discounted services. But like with insurance, memberships do not change the patients’ overall ability to pay when they are deciding whether to proceed with care.
Patients and dentists benefit from flexible financing solutions
Given these dynamics, financing companies—which have long had a presence in dental care—continue to have an important role in bridging the gap in dental care access. As consolidation increases among dentists and patients are increasingly burdened by the rising cost of care, dental financing is ripe for products that innovate in the space. This includes opportunities for financing companies to:
connect with patients pre-visit thus empowering patients to proceed with dental care
provide a best-in-class patient experience as well as practice experience leveraging integrations that limit the “swivel chair” effect on office staff
align financing with insurance plans so patients understand their ability to pay
provide customized financing plans based on patient demographics, treatment types, and credit profiles
offer solutions that align more with today’s retail experiences.
The intersection of rising dental care costs, shifting practice models, and the growing need for affordable care creates a compelling market opportunity for financing companies. Incumbents such as Synchrony (CareCredit) and Wells Fargo (Health Advantage card) have long operated in this space. Newer entrants are looking to bring innovation and take share from the established players - these include Sunbit, Dental Finance, Benefits, Afterpay, ChargeAfter, Rectangle Health, Cherry and others.
By addressing the financial barriers that prevent patients from receiving dental care, these firms can play a pivotal role in reshaping the dental landscape. Working together, the dental industry and financing solutions can ensure that oral health remains a priority for all Americans, regardless of their financial situation.
CEO CHAT
Itzik Cohen, Co-Founder & CEO, PayZen
Click here to read our latest CEO Chat, with PayZen CEO Itzik Cohen.
Threats loom over hospital revenue cycle. Healthcare systems face an onslaught of regulatory updates, increased cyber threats, and shifting payment models. (Becker's)
Healthcare Payments Insights Report. Includes data on patient visits to healthcare portals to pay bills, frequency of card on file, and patient preference for different methods of receiving medical bills. (US Bank)
ADDITIONAL RESOURCES
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.
CEO Chat. Thoughts from healthcare payments CEOs on the problem their company was founded to solve, their right to win, and plans for the next 12 months.
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
