Healthcare startup Parakeet Health has developed an advanced AI call center platform designed to handle a range of patient communication tasks, including answering inbound calls, making outbound calls, and sending text messages. With the goal of addressing staffing challenges, enhancing the patient experience, and reducing revenue leakage for healthcare providers, Parakeet offers a multilingual solution capable of scheduling appointments, managing referrals, assisting with billing, and answering frequently asked questions.
A Strategic Seed Round
Parakeet Health’s seed funding was led by Canvas Ventures, alongside contributions from CoFound Partners, StoryHouse Ventures, and notable individual investors like Dr. Tom Lee, former CEO of One Medical, and Adam Messinger, ex-CTO of Twitter.
Tackling Administrative Burdens in Healthcare
Traditional practices often rely on administrative staff to manage calls during business hours and after-hours answering services to take messages. However, front desk teams are frequently overwhelmed, leading to burnout and “answering fatigue.” According to Parakeet’s CEO and co-founder, Jung Park, nearly half of medical practices report staffing as their biggest post-pandemic challenge. Co-founder Eric Mao highlighted that administrative staff often experience “empathy fatigue,” compounded by the availability of less stressful employment options.
Parakeet’s AI-driven call center addresses these issues by ensuring every call is answered promptly. Additionally, it reduces revenue leakage by contacting patients on waitlists to fill last-minute cancellations and following up on patient referrals. For value-based care organizations, the platform can perform proactive outbound calls, such as routine follow-ups.
Technology That Sounds Human
Parakeet has invested heavily in refining its voice technology to ensure natural-sounding interactions. “We’ve focused on nuances like correctly identifying names and allowing conversational interruptions to enhance responsiveness,” explained Mao.
Deployment and Impact
The AI platform has been adopted by organizations like Galileo (a virtual primary care provider), Genome Medical (a leader in virtual genetic counseling), and Medical Dermatology and Cosmetic Surgery (a multisite provider). Over six months, Parakeet claims to have reduced patient acquisition costs by more than half—from $8.38 to $4.09—while enabling front desk staff to focus on higher-value tasks.
According to Park, the platform’s 24/7 availability is changing patient behavior, with patients scheduling appointments during unconventional hours, such as 2 a.m.
Meeting the Complexity of Scheduling
Scheduling patient appointments is highly nuanced, with providers often requiring customized rules based on the type of visit or whether the patient is new or returning. Parakeet’s system adapts to these complexities, tailoring scripts and schedules to fit the needs of individual practices.
Investor Confidence
Rebecca Lynn, lead investor at Canvas Ventures, noted that Parakeet is gaining traction due to its ability to scale patient communication while reducing the strain on healthcare staff. “Health systems leave significant revenue on the table by not optimizing processes like handling cancellations and referrals. Parakeet’s platform automates these workflows while maintaining personalized patient interactions,” she stated.
The Founding Team
Parakeet’s leadership includes:
- Jung Park, previously with One Medical and Epocrates.
- Eric Mao, former product and engineering lead at Microsoft and Primer AI.
- Aaron Lee, ex-engineering leader at Rippling and Twitter.
Paul Jorgensen, former CRO at Doximity and SVP at One Medical, serves as a strategic adviser and investor in the company.
AI Revolutionizing Patient Communication
Parakeet Health is part of a growing list of startups leveraging AI to improve healthcare communication. For instance:
- Hippocratic AI is developing the first large language model for non-diagnostic, patient-facing applications.
- Fair Square Medicare uses generative AI to create voice agents that streamline insurance screening for seniors.
As AI becomes more integrated into healthcare, companies like Parakeet are poised to play a pivotal role in enhancing patient engagement, reducing administrative burdens, and improving operational efficiency.
Are you interested in how AI is changing healthcare? Subscribe to our newsletter, “PulsePoint,” for updates, insights, and trends on AI innovations in healthcare.
