Brentwood, Tennessee-based MDsave has raised $12 million for its medical procedure payment service from MTS Health Investors, a New York-based private equity firm. This brings the company's total funding to at least $19 million. (Correction: An earlier version of the headline of this post incorrectly listed the amount raised as $14 million instead of the correct amount: $12 million.)

MDsave works with providers to create less expensive medical service packages for patients who pay out of pocket. Patients can search MDsave's website, find medical services provided by local physicians, select a bundled payment based on the quality, price, and convenience of the service, and then pay for the service upfront.

"Patients are demanding transparency with regard to their healthcare commitments," MDsave CEO Paul Ketchel said in a statement. "MDsave was built to provide just that."

The bundled payment includes all fees included in the medical procedure including fees for the facility, surgeon, anesthesiologist, and labs. Patients can save up to 60 percent off the medical procedure if they use MDsave, the company says, and providers receive their payment within six business days of the procedure. MDsave currently lists 6,800 procedures on its website.

Because the packages are designed for patients who want to pay directly for procedures, MDsave does not accept Medicare or Medicaid patients. Patients who have high deductible health plans may also be able to use MDsave and apply the savings to their deductible, but it depends on their specific plan.

The company is currently available in 50 communities in the US, up from 17 markets last year.