Parachute Health is modernizing healthcare through digital connectivity. Pulse 2.0 interviewed Parachute Health founder and CEO David Gelbard to learn more about the company.
David Gelbard’s Background
What is David Gelbard’s background? Gelbard said:
“I grew up in a family of caregivers – my mom is a nurse, my dad is a pharmacist, and my sister is a doctor. In my professional career, my background has always centered around problem-solving and driving change – with that, I saw an opportunity to make a meaningful impact in healthcare. Before founding Parachute Health, I was in private equity, where I worked on teams helping companies at inflection points while launching new products, scaling operations to grow with key customers and combining businesses to meet industry opportunities. With Parachute, I can combine my problem-solving skills with my desire to improve patient care and streamline healthcare processes after witnessing the impact care delivery delays can have firsthand.”
Formation Of Parachute Health
How did the idea for the company come together? Gelbard shared:
“After my father underwent back surgery, we encountered significant and frustrating delays in obtaining a walker—which was an essential piece of equipment for his recovery. This experience highlighted the inefficiencies in the Durable Medical Equipment (DME) industry, which relied heavily on paper-based and fax orders. I was struck by how outdated and inefficient the DME ordering process was, especially given the advances in other areas of healthcare technology. This really motivated me to take action, and in 2017, I founded Parachute Health with a clear mission: improve patient care by transforming how medical equipment is ordered and delivered.”
“My primary responsibility is to lead the company’s strategic direction and overall innovation. I work closely with our incredible team to continually improve our platform and deliver value to our partners, patients, and all the users of our platform tools including clinicians, DME suppliers and health plans.”
Favorite Memory
What has been your favorite memory working for the company so far? Gelbard reflected:
“One of the most rewarding aspects has been witnessing Parachute Health’s direct impact on patient care and clinician efficiency. So far, we’ve served over 5 million patients and saved clinicians countless hours that were wasted on paperwork, fax machines and phone calls from patients inquiring about why their hospital discharge was delayed, or when their medical equipment would arrive at home. It’s incredibly rewarding to hear clinicians say we’ve made their jobs easier and helped them focus more on patient care.”
Core Products
What are the company’s core products and features? Gelbard explained:
“Parachute Health’s core offering is our ePrescribing platform for DME orders. It digitizes the entire ordering process, which means no more paper or fax orders. We’ve built it to integrate seamlessly with electronic health record (EHR) systems, making it easy for clinicians to place orders quickly and accurately. Our platform also helps streamline the prior authorization process, a huge time-saver for clinicians. Last fall, we launched our AI Intake Solutionan enhanced AI-assisted order intake tool. This helps further reduce clinician and supplier time in completing DME orders and compliant documentation, while increasing transparency for health plans. Parachute’s innovation projects are highly targeted to align cutting-edge technology and our deep industry knowledge with improved information exchanges between clinicians, suppliers and health plans.”
Challenges Faced
What challenges have Gelbard and the team face in building the company? Gelbard acknowledged:
“One of the primary challenges has been overcoming the entrenched reliance on traditional fax-based systems within the DME industry. Despite the obvious inefficiencies, change in healthcare can be slow, especially when it involves adopting new technologies. But we’ve focused on building a platform that integrates seamlessly into the systems clinicians already use, like EHRs, so that the transition is as smooth as possible. Parachute is committed to partnering with our industry peers to help overcome some of the resistance by making the process faster and more reliable for everyone involved.”
Evolution Of Parachute Health’s Technology
How has the company’s technology evolved since launching? Gelbard noted:
“When we first launched Parachute Health in 2017, our primary goal was to replace paper and fax-based orders with a digital solution. Now, we’re committed to making digital solutions as easy as possible for patients, clinicians, and payers. Our platform integrates directly with EHR systems, which makes it easier for clinicians to use in their existing workflows. This year, we became the first to integrate the prior authorization process at the point of care in partnership with Optum, a game-changer for the industry.
“And we’re continuing to evolve alongside emerging technologies—our latest innovation integrates AI tools, which further streamlines the process of capturing EHR patient data and clinical assessment notes. This facilitates the clinician and supplier workflows necessary to efficiently complete a DME order with compliant documentation for insurance review and approval. The result is further reductions in administrative burden and increased transparency for all parties.”
Significant Milestones
What have been some of the company’s most significant milestones? Gelbard cited:
“Parachute supports over 220,000 clinicians, 66,000+ clinical facilities, and 3,000 supplier locations, improving access to essential care. We also just crossed the 5 million patient mark, which is a testament to the scale and impact of our platform. In addition, our Optum partnership enabled us to become the first platform to integrate prior authorizations at the point of care—well ahead of the upcoming Centers for Medicare & Medicaid Services (CMS) mandate. These are a few recent milestones that demonstrate our commitment to transforming the DME industry and ensuring patients receive the critical equipment they need in a timely manner.”
Total Addressable Market
What total addressable market (TAM) size is the company pursuing? Gelbard assessed:
“According to research, the US DME total addressable market is projected to grow at a compound annual growth rate of 5.63% from 2024 to 2030. The market is driven by increased demand, largely due to the growing aging population that needs mobility assistance like walkers and is more vulnerable to chronic diseases. The CDC estimates that 42% of Americans have one or more chronic conditions that, more often than not, need support from DME, like asthma and COPD.”
Differentiation From The Competition
What differentiates the company from its competition? Gelbard affirmed:
“What sets Parachute Health apart is our commitment to applying digital innovation to an end-to-end solution for DME ordering. Everyone agrees that the healthcare industry needs to #destroythefax; the most valued health tech partner is the one that truly enables all users to efficiently and compliantly communicate information throughout the DME ordering and delivery process. Our fully electronic platform integrates with electronic health records. This allows clinicians to place orders more efficiently and accurately, reducing administrative burdens and ensuring patients receive the needed equipment faster. Our partnerships with industry leaders, like Optum, and the integration of AI-powered features further enhance our platform by automating prior authorizations and improving order accuracy. These ongoing commitments to innovating and pushing the industry forward have positioned us as a leader in modernizing the DME space.”
Future Company Goals
What are some of the company’s future company goals? Gelbard pointed out:
“Looking to the future, our primary goal is to expand the adoption of ePrescribing across the DME industry, making it the standard for how medical equipment is ordered and delivered. We plan to continue integrating cutting-edge technology, such as AI, to optimize the process further, reduce delays, and ensure compliance with insurance requirements. Another critical focus is scaling our operations to serve even more patients and clinicians, particularly in new markets. As the healthcare landscape evolves, we aim to remain at the forefront of digital transformation, helping to create a more efficient, transparent, and patient-centered DME system.”
Additional Thoughts
Any other topics you would like to discuss? Gelbard concluded:
“I’d also like to emphasize the broader issue of healthcare transparency and our role in driving modernization across the sector. Our work with CMS to integrate prior authorizations at the point of care is just one example of how we contribute to a more accountable and efficient healthcare system. We must continue to push for reforms that reduce administrative burdens on clinicians, improve patient care, and ensure that no one is left waiting for critical medical equipment due to outdated processes. We’re excited about our impact so far, and we look forward to continuing this important work.”
