InstaMed, a Philadelphia tech company that handles payments for the health-care industry, is expecting to post $58 million in revenues this year, a 27 percent increase over 2017.
Founded in chief executive Bill Marvin's condo on Washington Square, InstaMed recently expanded its headquarters at 18th Street and JFK Boulevard to include a third floor. The larger space includes a new 3,200-square-foot "Collaboration Center" that InstaMed will use "to engage the entrepreneurial community," said Marvin. One of the first events to be held there will be a Philly New Tech Meetup: Defeating Cancer with Data on Sept. 27.
For three years, InstaMed has seen phenomenal growth. Revenue has accelerated from $31 million in 2015 but the company isn't planning to go public any time soon.
"We might start to consider that if we had revenues of $100 plus million, But we're very happy being private and having great capital partners who are patient and not driven by quarter-to-quarter business," Marvin said.
And there's still plenty of room to grow.
Marvin and InstaMed's chief technical officer, Chris Seib, had an inkling a thriving new business could evolve shortly after the two met at Accenture in 2003. That year, the Medicare Modernization Act created Healthcare Savings Accounts (HSAs). The Act complicated medical billing, taxes, and led to higher deductibles.
"We made a bet that the consumer would be paying more and we were right about that," Marvin said.. "That's been the continued driver for our growth."
The company has had its suitors. InstaMed has turned them down.
"We have no desire to be bought out, though we've had lots of opportunities," said Marvin, a Penn grad. "We think this is a huge market. We're just now starting to see what having some scale and brand recognition can do in a market with a huge problem that remains unsolved."