Gallion Health, which developed a cloud-based digital supply chain application at the University of Maryland Medical System (UMMS), has spun out as an independent company.
Gallion is the first company to be spun out of UMMS’ iHarbor Innovation Center, the system’s technology and incubation studio. UMMS made the initial seed investment in the spinout to support Gallion Health’s growth as the organization explores future external investment opportunities.
“Gallion validates the system’s innovation pathway and is already paying dividends for our member organizations, our staff and our patients. Discovery is one of our values at UMMS and through applications like Gallion, we are continuing to be an innovation leader in the industry,” said Mohan Suntha, M.D., M.B.A., president and CEO of UMMS, in a statement.
Gallion, a software-as-a-service (SaaS) platform, is now available for other hospital systems. The company said its product integrates with EHR and enterprise resource planning (ERP) systems, automating tasks such as consumption tracking, charges and contract compliance.
Before Gallion’s implementation in 2021 automated these processes, UMMS relied on a manual labor-intensive paper-based process that had the potential for errors and inefficiencies. Data from the deployment of Gallion across UMMS’ 11 hospitals shows significant operational improvements; completion time has been reduced by 75% and the defect/error rate has lowered from 18% to just 3%.
Gallion has helped UMMS save $2 million by improving invoice accuracy, streamlining operational efficiencies, and accelerating charge capture three-fold. The system saved an additional $3.5 million through the retention of competitive contracts, compared to the median contract benchmark.
“Gallion represents exactly what iHarbor stands for,” said Warren D’Souza, Ph.D., M.B.A., UMMS’ senior vice president and chief innovation officer, in a statement. “It is a transformative digital solution that saves time, saves money, accelerates the revenue cycle, and improves outcomes, and it’s something that is scalable across the industry.”
Health tech veteran Jeff Sopko has been hired as Gallion’s first CEO. He has worked for med tech companies such as Becton Dickinson and Medtronic. He later served as president and CEO for Standard Molecular, a Massachusetts-based genomic testing startup, and Direct Diagnostics, a Texas-based lab testing company that commercialized a saliva test capable of identifying pathogens. He joined the Gallion team in May to help prepare for the transition.
In April, Modern Healthcare recognized Gallion with one of its 2025 Innovators Awards. In January, Gallion was a finalist for the Gartner Power of the Profession Supply Chain Awards.
link