Phreesia, a digital health startup focused on the scheduling space, is looking to tackle the appointment no-show problem with a new tool called Appointment Accelerator, which is able to automatically fill canceled appointments.

The way it works is, the company's AI and custom-rules engine-backed product is able to send patients with appointments scheduled weeks or months away, offering them an earlier time slot. 

The company is pitching this as a way to cut down on the time it takes to fill a canceled appointment, claiming that the average time it takes practices to fill a slot using this system is 5.3 minutes.

WHY IT MATTERS

According to the Healthcare Innovation Group, the annual cost of missed appointments in the U.S. is roughly $150 billion. The organization projects that each no-show typically costs the physician 60 minutes and $200.

Digital tools have been used in the past to help remind patients about a visit or get confirmation about an upcoming appointment.

“Appointment Accelerator is an exciting extension of Phreesia’s mission to create a better, more engaging healthcare experience for patients, providers and staff,” Phreesia CEO Chaim Indig, said in a statement.

“Given that so many Americans skipped or delayed medical care during the pandemic, we believe it’s more important than ever to help practices improve efficiency to ensure patients get care faster.”

THE LARGER TREND

In 2019 Phreesia joined a small group of digital health companies exiting via an IPO. The stock saw early success on the stock market. Its initial asking price was $18, and by the end of its first day on the market, it was trading 40-50% above its initial asking price. Today the stock is worth roughly $64 per share.

Phreesia isn't the only company working in the cancelation space. T-Pro launched eClinic Manager, a platform that enables clinicians to carry out patient appointments virtually on a smartphone in order to avoid cancelation. The tool includes a virtual waiting room.

In 2016 QueueDr landed $1.2 million for its text messaging service that helps fill last-minute cancelations. Since then Phreesia has acquired QueueDr. 

Editor's note: A previous version of the story incorrectly stated that the service texted patients on a waitlist. The story has been ammended.