(Photo courtesy of NIH)
A Baltimore health startup is among the new class of companies entering Dreamit’s accelerator program.
Timonium-based Kermit was developed by a team that consulted for hospitals on the purchase of implantable medical devices for knees, hips and other body parts.
Kermit CEO Richard Palarea described the transactions like this:
On the sales side, there are vendors, medical device reps. On the other, there are surgeons who never see price tags and other administrative employees. Kermit realized there was a potential to save hospitals money by providing more information.
“We had no way of gauging whether reps were charging the right price,” said Palarea.
The price-transparency platform is currently being offered on a SaaS model, and is being used in hospitals like Anne Arundel Medical Center. Palarea provided a case study that showed the hospital saved $5 million in a year using the system.
Joining 14 other companies in Dreamit will help the startup make connections with mentors as well as investors who can assist the company, Palarea said. The company will attend a summit on startup methodology called Destination Dreamit, then spend 16 weeks working on the product and meeting customers.
The company enters the nationally known accelerator with a new look. In the fall, Dreamit announced a new model that does not require startups to relocate, and replaces demo day with a two-week investor roadshow, according to sister site Technical.ly Philly. In 2014 and 2015, Dreamit ran a health-focused accelerator program in Baltimore, but there have been no signs that the program will continue in 2016.
In addition to Dreamit, Kermit is being backed by investment from former Ravens kicker Matt Stover.
“In my mind it’s a huge, huge advantage to be able to negotiate contracts with current vendors as well as bringing transparency for doctors,” he said of the platform.
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