Medtronic (Minneapolis, MN, USA) has acquired Cardiocom (Chanhassen, MN, USA), a maker of remote management technology, strengthening its position in the high-growth market for telehealth products.
The all-cash transaction, valued at USD 200 million, is in line with Medtronic's transition towards an expanded medical device product offering and broader healthcare services and solutions, providing meaningful clinical and economic value for hospitals, physicians, patients and payers. The first area of focus for Medtronic will be in heart failure (HF), where the addition of the Cardiocom technology and patient services to its product offerings will expand its reach to more patients across the HF care continuum. Cardiocom also has products for the management of diabetes, cardiovascular disease, and hypertension.
For Medtronic, a company with a lot of investment in the high cost and shrinking-demand market for cardiac rhythm management (CRM) devices, the entrance into patient monitoring is a bid for diversification, helping the company combine diagnostics, therapies, and patient management technologies reporting real-time data back to physicians and nurses. Medtronic has stated that at-home monitoring is a proven method of reducing the rates of hospital readmission, with resulting savings for payers, providers, and governments.
“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,” said 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.”
“The synergy between our technologies and Medtronic's large presence with hospitals, physicians, and payers will dramatically increase our distribution channels for the Cardiocom patient management technologies and services,” said Daniel Cosentino, vice president and general manager of Cardiocom at Medtronic, and former CEO of Cardiocom. “Our approach to care coordination and telehealth services has allowed customers to reduce the overall cost of care, primarily through reduced hospitalizations.”