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Medtronic Advances Healthcare Services and Solutions Strategy with Acquisition of Cardiocom - The Analyst Perspective

15 Aug 2013 | by Daniel Ruppar
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http://newsroom.medtronic.com/phoenix.zhtml?c=251324&p=irol-newsArticle&id=1846808

Medtronic, Inc. announced the closing of the acquisition of Cardiocom, a privately held developer and provider of integrated telehealth and patient services for the management of chronic diseases, in an all cash transaction valued at $200 million.

The Analyst’s Perspective by Daniel Ruppar, Research Director, Connected Health (Twitter @danielruppar)

As healthcare continues to evolve in business model, so do the companies which provide products and services. The medical device space overall is one where companies are seeking to leverage new opportunities in care, how they can interact with the healthcare system, patients, and drive new areas of business. This announcement of Medtronic’s acquisition of Cardiocom is a prime example of this type of transition which is occurring in that industry.

Cardiocom as a leading firm in home health/disease management remote monitoring can enable Medtronic to extend itself to new areas which are important in the changes in healthcare, especially about services which help with aspects of readmission and outcomes in the era of accountable care.

As population management becomes more and more important, healthcare companies are trying to stay competitive by investing in technologies and services that follow the patient across the care continuum. It’s increasingly important to provide solutions that can transition with the patient from the hospital to home. This specific area of telehealth is a key facet of that, and one we see as a leading business opportunity in the telehealth space overall.

For more on our perspectives telehealth – see the following or other research from our Connected Health program on this topic:

Analysis of the North American Telehealth Industry: A CEO's Guide to Convergence between Healthcare and Information and Communications Technologies (http://www.frost.com/nb72)

Telemedicine – Seize the Year: American Telemedicine Association (ATA) Annual International Meeting & Trade Show 2013 (http://www.frost.com/q280793447)

Comments:

1
Posted by Poornima Vijayan | 11 Jun 2017
Yes this will be a great move by Medtronic. Healthcare industry is continuously growing which offers lots of medical devices and are becoming very helpful to combat chronic diseases. Such improved value-based delivery models will not only provide immediate treatment but reduces the care cost too. Even I have read on http://www.washingtontimes.com/news/2014/jun/16/medtronic-to-buy-irish-medical-device-manufacturer/ that Medtronic are going to buy Ireland-based competitor Covidien for $42.9 billion. This deal will definitely help them to expand their business.
Posted by Luke Gipson | 13 Jan 2015

 
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