Podcast Summary

Podcast: DGTL Voices with Ed Marx
Episode: A Soft Landing for Patients Leaving the Hospital (ft. David Gelbard)
Date: February 5, 2025
Guest: David Gelbard, CEO of Parachute Health

Overview

This episode features a conversation between host Ed Marx and David Gelbard, CEO and founder of Parachute Health. The discussion centers on the challenges of post-hospital care, specifically the outdated and cumbersome processes for ordering durable medical equipment (DME) and how Parachute Health is working to modernize this experience. Gelbard shares the personal story that motivated him to found the company, the technology behind Parachute, leadership lessons, and the importance of building trust and transparency in healthcare.

Key Discussion Points & Insights

The Origin and Mission of Parachute Health

• Origin Story

  • David shares a personal family experience: after his father’s life-saving surgery, the hospital’s discharge process failed to deliver essential DME (a walker), leading to a dangerous fall at home ([08:12]).
  • The name "Parachute" symbolizes the need for a "soft landing" when patients transition from hospital to home ([01:32]).

• Mission and Mantra

  • David wanted his work to have real-world impact: “To solve something that helps people in their most vulnerable state…that to me is a driving force of what to work on that helps make form prioritization.” ([03:54])
  • He considered naming the company "olam," meaning “to repair the world”—echoing his focus on making things better ([03:54]).

The Problem: Broken DME Ordering Processes

• Current State

  • The DME ordering process is dominated by faxes—even electronic ones—which cut off communication and lead to errors, lack of transparency, and coverage issues ([09:15]).
  • Discharge planners, patients, and providers operate in an “opaque state” with little assurance that needs will be met.
  • Insurance complexities across thousands of products, providers, plans, and diagnoses make effective coordination extremely difficult ([09:15]).

• Impact

  • Problems such as misdelivery or non-delivery of equipment can lead to patient harm, abandonment of treatment (e.g., CPAP devices, oxygen tanks), and increased healthcare costs ([15:32], [16:51]).

Solution: Parachute Health’s Platform

• How It Works

  • Parachute digitizes and simplifies DME orders, integrating with EHRs and automating insurance validation to ensure equipment is covered and delivered ([09:15]).
  • The platform handles the complexity of 40,000+ product codes, thousands of insurance plans, and myriad branching diagnosis questions, condensing ordering to under a minute.
  • Beyond initial orders, Parachute is expanding digital capabilities to handle reorders and digital authorizations, aiming for an end-to-end modern experience ([09:15], [15:32]).

• Vision

  • “We built a modern way to say, my patient needs this. Does the insurance cover it? Yes. Will it get there? Yes.” ([09:15])
  • The system is designed to restore trust in healthcare processes through clarity at the point-of-care, akin to a retail credit card authorization ([25:50]).

Why DME Lagged in Digital Innovation

• Historical Factors

  • Medicare’s “competitive bidding” program in the late 2000s slashed profits for DME providers, so there was little incentive (and less capital) to innovate until survival depended on cost reduction ([13:11]).
  • Many providers stuck with antiquated processes, but the market is now experiencing a shift similar to the move from brick-and-mortar to e-commerce ([13:11]).

• Future Directions

  • Further digitization will integrate “authorization moments” at the point of care—instantly informing clinicians and patients about insurance decisions, allowing for contingency planning ([15:32]).
  • Recent partnerships (e.g., with Optum) are paving the way for wider adoption.

Leadership & Personal Growth

• Resilience and Hustle

  • David attributes his drive to persistent rejection early in life (baseball setbacks, skepticism from peers about landing top finance jobs), fueling a mindset of “not taking no for an answer” ([18:06]).

• Biggest Lessons

  • Balancing conviction and humility: As a disruptive founder, learning to discern when pushback is valuable constructive criticism versus resistance to change ([20:03]).
  • Valuing incremental progress over perfection to foster a less anxious and more empowered team environment ([22:22]).

• Sustaining Well-being

  • David prioritizes physical fitness, mental health (therapy), meditation (especially massage), and spending joyful, disconnected time with family for clarity and resilience ([23:25]).

Notable Quotes & Memorable Moments

• On Personal Motivation:

  • “My dad left the hospital, didn't get what he needed, and he fell…We would say, what would he have liked? He would have liked to have a soft landing out of the hospital. And, you know, we call that a parachute.” — David Gelbard ([01:32])

• On the Current System:

  • "Fax, by definition, cuts off communication...you don't have this feeling that it’s going to actually happen. You're kind of left in this unknown, this opaque state." — David Gelbard ([09:15])

• On Building Trust:

  • "There's so many issues downstream that that gets rid of. And building trust back in the system to me is going to be like the most critical juncture. And that's the system we're building towards." — David Gelbard ([25:50])

• On Leadership:

  • “There's more you don't know than you know…you have to start figuring out how to balance the signal between people wanting to push back because they don't like change or they're pushing back 'cause it really doesn't work.” — David Gelbard ([18:06], [20:03])

• On Self-care:

  • “Going and having my face down, doing nothing for an hour is key. Like, I think those three are my medicine: Insane and clear." — David Gelbard ([23:25])

Important Timestamps

• 01:32 – Origin and meaning of "Parachute"
• 03:54 – David’s personal mantras and founding ethos
• 05:04 – Early life and family healthcare background
• 08:12 – Story of father’s hospital discharge mishap
• 09:15 – Problems with DME ordering and Parachute’s comprehensive solution
• 13:11 – Why DME is behind in digital transformation
• 15:32 – What’s next: digital reorders and insurance authorization
• 16:51 – Impact of missing or late DME on adherence and health outcomes
• 18:06 – Lessons in resilience and overcoming “no”
• 20:03 – Leadership: learning to listen and collaborate
• 22:22 – Pursuing incremental progress
• 23:25 – Personal strategies for mental and physical well-being
• 25:50 – Retail analogy for healthcare trust and Parachute’s broader vision

Final Thoughts

David Gelbard’s journey combines a personal healthcare crisis with a sharp business and technical mind, yielding a solution that blends empathy with innovation. Listeners gain insights into the complexities of post-acute care transitions, the obstacles to digitizing healthcare infrastructure, and the leadership qualities needed to drive transformation—rounded out by personal stories, relatable humor, and practical advice on resilience and self-care.

For more: Listen to the full episode of DGTL Voices on your preferred streaming service.