Parachute Health Raises $9.5 Million in New Funding to Expand Revolutionary ePrescribing Platform
NEW YORK--(BUSINESS WIRE)--Healthcare technology platform Parachute Health announces $9.5 million in new funding to expand its leading ePrescribing platform into key markets across the United States. Parachute solves an enduring pain point in the healthcare system by providing a seamless, all-digital solution for ordering the critical medical equipment and services patients need after they are discharged from the hospital - such as oxygen tanks, wheelchairs and medical supplies.
Despite a shift to electronic medical records and years of digital innovation across industries, ordering critical medical supplies for patients still requires fax machines and paper records. More than 80% of fax orders are initially declined due to easily-avoided clerical errors and without electronic delivery confirmation, more than 15% of orders are never delivered to patients. Parachute completely upends this outdated legacy process by eliminating the need for fax machines, vastly improving patient care, saving hospitals money and reducing Medicare fraud and waste related to medical equipment orders.
Parachute fully integrates into the most popular electronic medical record systems, including Epic, to provide an intuitive, user-friendly solution for medical staff. Parachute is already being used by leading healthcare facilities across the country, including the Hospital for Special Surgery, Visiting Nurse Service of New York and Stanford Hospital, among many others.
“We are incredibly encouraged by the tremendous interest we’ve seen so far from healthcare facilities and suppliers across the country,” said Parachute CEO and founder David Gelbard. “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.”
“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,” said Peter Segall, Managing Director at Insight Venture Partners. “Investing in healthcare companies that radically improve the system can mean a better quality of life for people.”
The new funding round was led by Harley Miller and Dan Ahrens of Insight Venture Partners and includes investments from GNYHA Ventures, the business arm of the Greater New York Hospital Association and Anthony Welters, formerly of UnitedHealth Group. Parachute previously raised $5.5 million in funding from investors including Loeb Holding Corporation.
Gelbard founded Parachute Health to create a more effective healthcare system after witnessing first-hand how this problem is hurting patients. In 2015, after spinal surgery, Gelbard’s 80-year-old father was discharged from the hospital. The walker that was ordered through his Medicare plan was delayed for weeks and Gelbard’s father re-injured himself while waiting.
In addition to the new funding, Parachute Health is also appointing several new members to the company’s Board of Directors, including Anthony Welters (Former EVP, United Health Group), Lee Perlman (President, GNYHA Ventures) and Peter Segall (Managing Director, Insight Venture Partners). Fred Browne, the former President of McKesson Extended Care, also serves as an advisor to the company.
ABOUT PARACHUTE HEALTH
Parachute Health is a healthcare technology platform that is transforming the way patients receive the care they need to properly manage their health and recovery at home. Parachute leverages sophisticated machine learning technology to replace the antiquated process for prescribing orders for Durable Medical Equipment (DME) via fax and paper records. Parachute improves patient care and reduces costs for payors, providers, and suppliers by dramatically reducing order errors, insurance claim denials and time spent ordering equipment. Visit parachutehealth.com.
ABOUT INSIGHT VENTURE PARTNERS
Insight Venture Partners is a leading global venture capital and private equity firm investing in high-growth software companies that are driving transformative change in their industries. Founded in 1995, Insight has raised more than $18 billion and invested in over 300 companies worldwide. Our mission is to find, fund and work successfully with visionary executives, providing them with practical, hands-on growth expertise to foster long-term success. Across our people and our portfolio, we encourage a culture around a core belief: growth equals opportunity. For more information on Insight and all its investments, visit insightpartners.com or follow us on Twitter @insightpartners.