Healthcare platform provider Phreesia announced this week that it has filed paperwork with the U.S. Securities and Exchange Commission (SEC) related to an initial public offering.
Phreesia offers a suite of applications enabling healthcare organizations to manage the patient intake process. According to its Form S-1 filing with the SEC, the company was founded in 2005 as a check-in and messaging tool for the healthcare market. During its fiscal year 2019, it managed more than 54 million patient visits for about 50,000 providers and processed more than $1.4 billion in patient payments. The company is registered as a payment facilitator.
Phreesia intends to list on the New York Stock Exchange as “PHR,” it said in a press release. The number of shares that will be offered and the price range have not yet been determined.
The company described its integrated payments platform as one of its competitive strengths within its filing.
“The integration of payments within our patient intake platform creates a seamless experience for both patients and providers and results in increased payments for healthcare provider organizations and revenue for Phreesia. Compared with disparate payment platforms and manual reconciliation processes, the Phreesia Platform automatically posts payments in real-time to a provider client’s PM system, creating material time and cost efficiencies for our provider clients,” the company wrote.
Phreesia’s director of payment operations, Fuji Le, shared insights into the advantages of integrating payments with healthcare software in a podcast on PaymentFacilitator earlier this year.
Outlining its financial model within its SEC filing, Phreesia said that its revenue comes in the form of subscription and related fees and recurring payment processing fees, as well as revenue from the sale of digital marketing solutions.
“Over 80% of our patient payment volume is composed of credit and debit transactions processed on Phreesia’s payment facilitator model, generating the majority of Phreesia’s payment processing revenue. The remainder of our patient payment volume is composed of credit and debit transactions for which Phreesia acts as a gateway to another payment processor, and cash and check transactions,” the company wrote.
“We expect revenue from payment processing to increase as a percentage of our total revenue as we increase the number of provider clients on our Platform and as overall healthcare costs and patient financial responsibility continue to rise,” it continued.
Other publicly traded payment facilitators include Square, Shopify, PayPal, Blackbaud, RealPage and USA Technologies.