JP Morgan has announced its plan to acquire InstaMed, an American healthcare technology company that specializes in healthcare payments, for over $500 Million. The purchase marks JPMorgan’s biggest takeover since it bought investment bank Bear Stearns and the retail banking assets of Washington Mutual in 2008.

Established in 2004, InstaMed, which counts roughly 300 employees, provides billing services linking the likes of hospitals and doctors’ offices with the insurers and patients that pay for their services. It processed healthcare payments of $94bn last year.

“With InstaMed, we combine the strength and scale of JPMorgan Chase’s payments capabilities with a leading healthcare payments solution for consumers, providers and payers,” said Takis Georgakopoulos, Global Head of Wholesale Payments, JPMorgan Chase.

U.S. healthcare spend is over $3 trillion* and is challenged by significant transaction friction and inefficiency. Legacy approaches to bill pay, claims processing, payment collection and reconciliation, among other areas, have been slow to modernize, causing pain-points across the industry.

According to the supplier, InstaMed’s secure, centralized platform aims to alleviate a number of challenges in the healthcare payments industry, with particular focus on eliminating paper, improving the consumer financial experience and reducing costs to collect payments.

“We couldn’t be more excited to join the JPMorgan Chase family – combining one of the world’s preeminent financial institutions with the premier technology and talent in healthcare payments,” said Bill Marvin, co-founder and CEO of InstaMed. “Together, we will be able to invest in and expand the InstaMed Network, accelerate our consumer reach, and deepen our commitment to innovation.”

by Megha Bhattacharya
Market Analyst at IBS Intelligence
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