Parachute Health secures $5.5M

NEW YORK - DME technology platform Parachute Health has raised $5.5 million to expand nationwide. The company integrates directly with Epic and other widely used electronic medical record software programs to create a completely digital prescription ordering process for DME based on machine learning technology that ensures compliance with ever-changing insurance requirements. “Despite decades of advancement across industries, healthcare still relies on the fax machine,” said CEO David Gelbard. “With Parachute, we are improving the experience.” The company will expand nationwide following a successful beta period last year. It estimates it currently covers 60% of the healthcare market in New York and has served more than 100,000 patients. It also has a presence in several other states. Parachute's investors include Greater New York Hospital Association Ventures, Loeb Holding Corp., Anthony Welters (former executive vice president/office of CEO for United Health Group), Fred Browne (former president of McKesson Extended Care) and other healthcare innovators. Parachute is also in the middle of a Series A funding round to launch additional products and services. Gelbard founded the company after his 80-year-old father underwent back surgery and the walker that was ordered for him through his Medicare plan never arrived. During this time, he took over the family's pharmacy and recognized firsthand the need to modernize the DME industry through technology. Before founding Parachute, Gelbard was an investment professional at Falcon Investments, a private equity firm with more than $2.5 billion in assets under management.