In 2017, Jim Aylward told the Business Journal that if he and his team were able to "execute and market" their fledgling health tech startup, he believed they would be acquired.
That belief is now reality.
Brentwood-based Preferral, whose platform streamlines the medical-referral process, has been purchased by eConsulting firm AristaMD, Aylward said. Terms of the deal were not disclosed.
Founded in 2014, Preferral’s software helps primary physicians search for specialists, match insurance plans, set appointments and remind patients of their appointments.
The platform was designed by the company’s now chief technology officer, John Gautsch, while he was attending The University of Notre Dame. He noticed his father, an orthopedic surgeon, still received referrals from doctors via the phone or fax machine and thought there had to be a way to make the referral process faster and more accurate.
Aylward, who will step down as CEO after a 30-day transition period, said Preferral’s platform will compliment AristaMD’s technology, which allows physicians to consult virtually with specialists while seeing a patient.
“[Preferral] can make that referral for the eConsult, because the referral still has to take place,” Aylward said. “Secondly, if the eConsult [requires a follow up visit with a specialist] they then can use Preferral to make the referral. … It seemed like a very natural fit.”
San Diego-based AristaMD is backed by several big name investors, including Ascension Ventures, .406 Ventures, Cigna Ventures and MemorialCare Innovation Fund, according to a news release announcing a $24 million round of funding in 2020. By allowing physicians to consult virtually with specialists while seeing a patient, the company’s platform aims to cut down wait times and increase access for patients, while reducing costs.
“I felt [AristaMD] was a great company with great backers and great partners. It felt right,” Aylward said. “We felt we got the company to a good size and felt that AristaMD would be a great partner and someone to work with.”
Preferral is the third local health tech company Aylward has helped grow and sell as CEO. He led Brentwood-based health care technology firm MedCenterDisplay during its acquisition by Cincinnati-based PatientPoint. Before that, he was CEO when Sy.Med Development Inc. was sold to Nashville-based HealthStream in 2012.
Aylward said he’s not sure what’s next for him after Preferral, except that he’ll be taking some time off. Preferral’s other three employees will remain with the company.
“I’m going to take a deep breathe and decompress,” Aylward said. “I feel pretty fortunate and blessed with the support that we’ve had throughout that run. When I look back I’m pretty proud and really thankful for the investors that backed us at three different companies.”
