Hot on the heels of a $5.5 million seed funding announcement in March, New York-based Parachute Health — a startup looking to digitize the ordering of durable medical equipment (DME) and other critical medical equipment for patients leaving the hospital — has now brought in $9.5 million in additional backing.
The new investment round was led by Insight Venture Partners’ Harley Miller and Dan Ahrens, and also included GNYHA Ventures.
“We are incredibly encouraged by the tremendous interest we’ve seen so far from healthcare facilities and suppliers across the country,” Parachute CEO and founder David Gelbard said in a statement. “Parachute’s goal is to solve the flaws of the post-acute care industry and to help people who depend on essential at-home equipment and services to live independent and happy lives.”
Parachute’s software-driven platform integrates with EHR systems and holds a number of key advantages over fax-driven equipment ordering, such as electronic delivery confirmation, up-front notification of patients’ insurance coverage benefits, and support for convenient digital messages between parties. The digital platform can quickly identify and reduce errors in equipment orders that often prevent patients from receiving the equipment they need for weeks at a time, Gelbard — who witnessed these complications first-hand when his father was discharged following back surgery — told MobiHealthNews back in March.
“Right now it’s a paper and fax-based process: they print off the EMR notes, they fill out a paper vendor order form, and then they send both of those to a supplier, in which case, over 80 percent of the time, it's incorrect. [And when] there is an error on it, [it] starts this back-and-forth process to rectify the issues,” Gelbard said at the time. “[Hospitals] can’t discharge someone without feeling somewhat confident that the patient’s oxygen tank is going to be there. The problem is that 15 percent of the time they don’t get it correct — they discharge someone and the oxygen tank never shows up, which becomes a painful situation.”
Alongside the new funding, Parachute announced a slew of new members joining its Board of Directors. These include Anthony Welters, former EVP of United Health Group; Lee Perlman, president of GNYHA Ventures; and Peter Segall, managing director at Insight Venture Partners.
“Insight saw Parachute’s ability to tap into an area in healthcare where technology was lacking and not only innovate, but also create real change,” Segall said in a statement. “Investing in healthcare companies that radically improve the system can mean a better quality of life for people.”