SAN FRANCISCO--(BUSINESS WIRE)--Covered Care, a division of Covered, announced today it has secured a $100 million financing line from funds and accounts managed by Fortress Investment Group LLC, a leading, highly-diversified global investment manager.
Americans face nearly $400 billion in out of pocket healthcare costs annually according to the latest figures from the Peterson-Kaiser Health System Tracker. This is driving the need for more affordable and more universal patient financing options just as traditional lenders are tightening approval criteria due to the global pandemic. As a result, Covered Care is experiencing heightened demand for its offering which provides hassle-free access to affordable patient financing for people declined by traditional credit.
“Fortress has a longstanding track record as a financing partner for fast-growing innovators, and this facility will enable us to serve the growing number of people declined for traditional patient financing,” said Ken Rees, Founder and CEO, Covered. “There are few things more important than ensuring that every American receives the healthcare they need and that they can pay for it over time, regardless of their credit score. With this financing line, we are able to help healthcare providers scale their businesses and serve more patients.”
According to a recent FICO report and data from the Consumer Financial Protection Bureau, more than half of Americans have a credit score less than 700 or no credit score at all. This means they are typically denied access to credit or offered prohibitive interest rates -- even for critical and urgent needs, such as medical expenses.
“Covered was founded by seasoned industry veterans who have a proven history of building successful, high-growth businesses serving underserved Americans,” said Dominick Ruggiero, Managing Director of Fortress Investment Group. “We have been impressed with Covered Care’s unique offering and we are very pleased to support their mission of increasing access to affordable credit at a time of urgent demand.”
This announcement comes on the heels of Covered Care’s recent partnership announcement with Healthcare Finance Direct to offer nearly 100% approval rates for patients with subprime credit profiles with no risk of loss to the healthcare providers.
About Covered Care
Covered Care was founded by a group of fintech industry veterans to provide better healthcare financing solutions for underserved Americans. Using new technology and analytics, Covered Care enables medical professionals to offer affordable financing for nearly all of their patients. Covered Care falls under the umbrella of Covered offerings, including Covered Credit, which give people “credit at the speed of life.” Visit coveredcare.com for more information.
About Fortress Investment Group
Fortress Investment Group LLC is a leading, highly diversified global investment manager with approximately $45.5 billion of assets under management as of June 30, 2020. Founded in 1998, Fortress manages assets on behalf of approximately 1,900 institutional clients and private investors worldwide across a range of credit and real estate, private equity and permanent capital investment strategies.