Last Thursday, our weekly research note brought to light the increasing relevance of remote patient monitoring and where it can address a range of healthcare opportunities.
Ironically, this morning Medtronic, a global leader in medical device technology and therapies, made it clear that “the game is on” by entering the connected health market via its acquisition of privately-held Cardiocom in an all-cash $200 million transaction. Cardiocom provides integrated telehealth and patient services for the chronic condition population.
Our quick take is that this move by Medtronic reinforces several key themes:
- New Strategic Players are on the Move…Medical device companies are looking at new channels to get closer to consumers with chronic health conditions and are realizing the importance of preventive care and a more solutions-orientated approach.
- New Convergence Points are Emerging…Thanks to reform, connected health solutions (including Remote Patient Monitoring (RPM) and Personal Emergency Response Systems (PERS)) are coming together with healthcare products, services and solutions in new, powerful ways.
- Health Reform and Healthcare Dynamics are Prompting all Healthcare Firms to Look at High Risk / Chronic Condition Populations in New Ways…A key theme of this acquisition is where Medtronic will apply its medical device expertise with broader healthcare services and solutions via Cardiocom, essentially focusing on serving the chronically ill and where costs run highest. Medtronic is very steeped in therapeutic medical devices and out of the gate will utilize Cardiocom to progressively support the management of cardiovascular diseases like heart failure, but with an eye on high risk areas like diabetes, etc.
- New Ways to Leverage Data…The marketplace is riding a new wave of patient surveillance, which includes proactively “managing” these conditions. In the end, this is prompting new attention and focus on better solutions and re-engineering traditional approaches.
Clinical integration of connected health solutions is an area our team is watching closely. Let us know if you have any questions.
Have a great week.