Built for Compliance, Designed for Care
Inside PayZen’s Mission-Driven Approach to Patient Financing and Regulatory Alignment
The regulatory landscape may be complex, but its purpose is clear: to ensure patients are treated fairly and that medical debt is managed fairly and transparently. PayZen’s patient-first mission and compliant model help providers meet these goals by expanding access, strengthening collections, and bringing patients choice.
At PayZen, our mission is to bring financial health back to healthcare. We saw a system that wasn’t working — patients faced unaffordable bills, and hospitals struggled to collect. Our solution puts patients first with transparent, interest-free, fee-free payment plans with repayment terms based on ability to pay. It’s an approach that improves access, supports provider economics, and naturally aligns with the principles behind today’s healthcare regulations.
Healthcare regulations exist to protect patients, and so do we. PayZen was built to support both patients and providers. Our technology and data platform were built with many of the same protections that compliance laws are designed to enforce. Patient choice and payment affordability are embedded in our model.
PayZen’s Chief Legal Officer
Whether you’re a healthcare finance leader, a potential partner, or a regulator, understanding how PayZen approaches compliance provides clarity and confidence in choosing a financing partner that aligns with your values and responsibilities.
Understanding the Regulatory Landscape
Out-of-pocket healthcare costs are at an all-time high, and more than 100 million Americans — nearly 4 in 10 adults — are burdened by medical bills. Given the scale of the problem, it’s no surprise that both state and federal regulators are intensifying their focus on patient financial protections.
Two key areas have come under particular scrutiny. First, extraordinary collection actions — including credit reporting, wage garnishment, and legal threats — can escalate patient distress and erode trust in the healthcare system. Second, when hospitals fail to identify and support patients who qualify for financial assistance, charity care, or bill revisions after insurance adjustments, those patients may be sent to collections or offered financing unnecessarily, creating harm and exposing providers to compliance risk. These issues are often linked to the sale of medical debt to third parties, which limits a provider’s ability to revise or forgive balances and safeguard patients from aggressive collections.
A growing number of states are taking action. Some prohibit or restrict the sale of medical debt entirely, while others introduce waiting periods before unpaid balances can be transferred to third parties. In some cases, state guidelines or their interplay with federal regulations are unclear. Even small differences in how these laws are interpreted can introduce compliance risk for providers. At PayZen, we understand these complexities and partner closely with regulators and healthcare system leaders to help navigate them with confidence.
The regulatory landscape is always shifting, but our approach is designed to move with it. We’ve created a flexible framework that helps providers stay ahead, not just keep up.
Peace of Mind Built In: PayZen’s Approach to Compliance
As medical debt draws increasing scrutiny, healthcare leaders are looking more closely at the structure and safeguards of their patient financing programs. While the right solution can improve collections and ease financial strain on patients, the wrong partner can introduce regulatory risk and erode trust.
PayZen complies with all state and federal regulatory requirements, and is compliant with IRS Section 501(r)(6), enabling nonprofit healthcare providers to offer patient financing without jeopardizing their tax exempt-status.
Our platform is built to reflect the very principles these regulations are designed to protect: transparency, fairness, and patient safety. While many vendors use a direct lending model, what truly differentiates PayZen is the patient-first approach we’ve operationalized. From plan creation to long-term servicing, every aspect of our model demonstrates a deep commitment to compliance and compassion.
That commitment is captured in our PayZen Patient Promise.
The PayZen Patient Promise:
Complying with State-Level Regulations
Compliance starts with collaboration. At PayZen, we engage directly with state regulators to ensure our approach is not only legally sound but reflective of the patient-first principles these policies are meant to uphold. Our legal and compliance teams are in ongoing dialogue with regulators and policymakers to understand evolving priorities and tailor our model accordingly. We collaborate closely with regulators to ensure we reflect both the letter and the intent of the law.
Because patient financing regulations vary by state — from licensing requirements to restrictions on medical debt sales — we can tailor our contracts and servicing approach to meet local requirements. Whether that means modifying contract language, filing with regulatory bodies, or structuring our payment plans differently, our goal is always the same: to provide patients with safe, transparent, and fair financing.
Importantly, we’re built to support health systems that operate across multiple geographies. For enterprise organizations navigating varying state and federal requirements, PayZen offers the flexibility to tailor our model on a state-by-state basis, while still delivering a consistent patient experience and centralized oversight.
A Partner You Can Count On
The rules around patient financing services may be complex, but PayZen’s approach is simple: prioritize the patient experience, build trust with providers, and stay ahead of evolving regulations. We do that by partnering with regulators, designing transparently, and continuously innovating with patients at the center of everything we do.
For PayZen, compliance isn’t just about checking boxes—it’s about helping patients afford and access the care they need, and operating with integrity at every step.
Have questions about compliance or patient financing options in your state? We’re happy to connect.
