The acquisition of Cardiocom is one step we are taking toward providing a combination of products and solutions that can help address those challenges.
Medtronic has acquired the private telehealth company Cardiocom for $200 million in a bid to gain new business from healthcare providers and payers looking to cut costs by reducing hospitalizations.
“With broad healthcare reform initiatives focused on growing economic challenges, healthcare systems in every region of the world are striving to continuously improve outcomes, increase access, save cost, and improve the efficiency of healthcare delivery,” says Omar Ishrak, chairman and CEO of Medtronic. “The acquisition of Cardiocom is one step we are taking toward providing a combination of products and solutions that can help address those challenges.”
Driven by both rising costs and the financial opportunities offered by healthcare reform, hospitals are seeking to provide more cost-effective care. Cardiocom’s technology offers providers real-time insight into patient data, a window that will help them offer proactive patient intervention programs, earlier and more accurate interventions, something that doctors hope will increase patients’ engagment in mannaging their disease.
Medtronic says the purchase will help it move beyond serving patients reliant on implanted medical devices, its main revenue source today, and broaden its portfolio to include complementary services.
At first, the company will employ Cardiocom’s remote monitoring platform to support care coordination and offer specialized telehealth nurse support for patients at risk for or having experienced heart failure. But Cardiocom has also developed products and services to address diabetes, chronic obstructive pulmonary disease, asthma, hypertension, and obesity.
Medtronic expects the net impact from the transaction to be neutral to its fiscal year 2014 earnings.
August 12, 2013