Par8o Aims to Reinvent the Referral Process

With so much new technology in the healthcare field like EMR systems, “quantified-self” gadgets, and online tools, it’s easy to get caught up in the fanfare without taking the time to truly examine the benefits and hindrances of each product.

Daniel Palestrant, MD and Adam Sharp, MD, co-founders of the popular online physician community Sermo, believe that many new EMR systems diminish the patient-doctor experience, lowering the overall quality of our healthcare system.

The first step toward improving the broken system, they claim, is “Referrals, Reinvented.” This idea is what led the two physician/entrepreneurs to leave Sermo and pursue a new venture, Par8o.

The company’s product is yet to be released, but Par8o’s blog serves as a passionate manifesto, harshly criticizing the commoditization of physicians as well as healthcare software that prioritizes “profit and politics” over patient care.

The company’s name comes from the Italian economist Vilfred Pareto, who preached that “efficiency comes from effectively matching supply and demand.” Palestrant explains, “For this efficiency to occur, there needs to be as few intermediaries as possible between the reciprocal parties and a clear, transparent understanding of the goods or services being provided.”

To foster better efficiency within the healthcare community, Par8o’s founders are using their software and social networking experience to improve the physician referral process. Often times when a general practitioner sees a health problem in a patient, they call in a specialist that can better treat or diagnose the problem. In an article from Xconomy, Palestrant explains that of all the millions of referrals made every year, somewhere between 20-40 percent never actually result in another appointment.

Par8o will provide software that enables doctors to make referrals more efficiently and effectively.

“Not only can we make sure that the referral occurs, but doctors in all parties involved can track and manage that process,” he continued. “They can make sure the appointment actually occurred. We’re then able to allow the healthcare system to start introducing the Pareto efficiencies. In this case the specific challenge is what healthcare provider is best suited to address this [patient's problem].”

The founders are keeping quiet regarding the specifics of their business model and how the product will function, as they are busy testing and tweaking their software.

This hush-hush attitude lends itself to some creative marketing, as Par8o’s website gives no details as to what the product actually is. Instead, visitors will find a series of passionate and insightful blog posts outlining what the company hopes to achieve as well as a section called “Pareto Sightings,” which features a series of playful photos of a Vilfred Pareto cutout wearing a lab coat at various landmarks in Boston, near Par8o’s offices in Cambridge. All of this gives the brand a sort of mystique that is sure to create some buzz within the medical community.

Par8o will likely launch sometime within the next few months. If you want to be among the first to hear about it, you can sign up for the company’s product launch notification here.

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