Location: Timonium, MD
Industry: Healthcare IT/digital health
Founder and CEO
MANAGING COSTS, PRESERVING QUALITY
Kermit saves hospital systems millions of dollars annually on orthopedic, spine and cardiovascular physician preference items by performing audit and compliance reviews of vendor-submitted invoices. “Hospitals are under tremendous pressure to manage costs without negatively impacting patient quality and outcomes,” says Richard Palarea, founder and CEO of Kermit. “We are a combination of spend management experts with a successful track record of savings and former medical device reps that understand the tricks and the traps of this technical area.”
Quick Tip: “Nobody will ever follow you, even if the vision is a great one, until they know that you care about them and are willing to do the hard, menial work that you are asking them to do.”
Kermit has faced challenges in trying to scale its application and infrastructure to support larger deals. The company has overcome these challenges by changing its payment terms with customers, working with mentors and an advisory board, and leveraging its technology accelerator, Dreamit Ventures. Going forward, Palarea wants Kermit to help hospitals thrive under new reimbursement models coming out of the Affordable Care Act. “[Hospitals] will need to measure how to effectively reduce costs without impacting patient quality and outcome. Our primary goal is to acquire or partner with a healthcare quality measurement organization or joint registry to add this key functionality,” he says.