KENTWOOD, MI — A Kentwood-based company that operates a healthcare payment plan expects to hire 200 people and add new office space after landing a contract with a large, national healthcare system.
HealthBridge Financial’s expansion, announced at Tuesday’s Michigan Strategic Fund meeting, is estimated at $17.3 million over five years. It includes 55,000 square feet of new office space at 5253 36th St. SE in Cascade Township, where some HealthBridge employees will be moved to in the first quarter of next year.
The new jobs, which will pay between $25 and $64 an hour, are expected to be added over the next two years, officials said. The positions are in technology, customer support, operations and finance.
“We’re growing quickly, we’re creating high quality jobs and we want to expand here in Michigan, and your support helps solidify that commitment and accelerates our ability to scale,” Gregory VandenBosch, HealthBridge’s founder and CEO, told the Michigan Strategic Fund.
The Michigan Strategic Fund awarded the company a $1.5 million Michigan Business Development Program (MBDP) grant to support the company’s expansion. The Michigan Strategic Fund is the public funding arm of the Michigan Economic Development Corporation (MEDC).
In a memo, the MEDC said the grant was needed to secure the company’s investment and expansion in West Michigan. Other locations, including Chicago, Arizona, Texas and Nevada, were also under consideration for the HealthBridge expansion.
The grant was critical because West Michigan’s talent pool is smaller than Chicago’s, where HealthBridge also has a presence, according to the MEDC memo. HealthBridge employs financial and technology workers in Chicago.
The company declined to identify the name of the large, national healthcare system it signed the contract with that’s prompting HealthBridge’s expansion.
HealthBridge, a healthcare-focused financial technology company, launched in 2017 and is headquartered at 3200 Broadmoor Ave. SE in Kentwood. The company plans to keep that space after opening additional space in Cascade Township
The company, which has 80 employees, operates a payment plan in which it pays hospitals upfront for what patients owe, VandenBosch said. Those patients are then provided with a no-interest, monthly payment plan through HealthBridge.
The approach, VandenBosch said, helps reduce the number of people who skip or delay necessary care because of high, out-of-pocket costs.
“It’s a simple model with powerful results,” he said. “Hospitals get immediate and stable cash flow. We address the growing problem of care avoidance. Patients avoid much of the financial stress and confusion that comes with health care obligations, and health systems reduce the administrative burden of managing millions of patients and acting as the bank.”
Local economic development officials said they are pleased HealthBridge chose to expand in West Michigan.
“The company had appealing options in other regions across the country,” said Brent Case, vice president of business development at The Right Place, a regional economic development group based in Grand Rapids. “However, our area’s skilled talent pool, strong work ethic, supportive business climate, and the company’s commitment to its hometown were significant factors in the decision to grow right here.”
The $1.5 million MBDP grant can be used for eligible expenses such as construction and infrastructure related to the expansion as well as machinery, equipment, computers and lease payments, according to the MEDC. Costs related to talent recruitment and job training are also eligible expenses.
Ten percent of HealthBridge’s 80 employees are based in Chicago, company officials said.
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