This morning ResMed, maker of connected respiratory devices, announced that it is set to acquire MatrixCare, a Minnesota-based EHR company, for $750 million.
MatrixCare’s EHR is targeted towards long-term post acute care services, such as skilled nursing facilities, life plan communities and senior living homes.
The deal is expected to help ResMed expand its software-as-a-service offerings, specifically in the long-term care setting.
The deal is set to close by the end of the company’s second fiscal quarter in 2019. After the acquisition, MatrixCare is expected to remain a standalone business inside of ResMed’s portfolio.
“By establishing a technology footprint across these major care settings, ResMed will drive an integrated ecosystem of solutions, such as maintaining single-patient records across multiple care settings, generating analytics and insights that can be applied to individuals and whole populations, and streamlining processes for healthcare providers across the care continuum,” Raj Sodhi, ResMed SaaS’ president, said in a statement.
What's the impact
ResMed has been entering the SaaS space for some time with its Brightree and Healthcarefirst systems, which specialize in medical equipment, home health and hospice services. This new acquisition is expected to strengthen its foothold in the arena. It is also expected to help the company grow in the area of referral management, claims processing and payroll management.
“The acquisition of MatrixCare is an excellent addition to the out-of-hospital software portfolio that we can offer our healthcare provider customers,” ResMed CEO Mick Farrell said in a statement. “ResMed is the world’s leading tech-driven medical device company and is well positioned to be the leading out-of-hospital software provider in the market. With our portfolio including Brightree, Healthcarefirst and MatrixCare, we will streamline transitions of care, creating better outcomes for patients, caregivers, and out-of-hospital healthcare providers.”
What's the trend
Within the digital health world ResMed is often associated with sleep and respiratory treatments. Some of the company's best known products are the AirMini and S+. The sleep company was also part of SleepScore Labs, a joint venture with Dr. Oz Media and Pegasus Capital Advisors. Last fall it launched a non-contact sleep improvement device.
The company also made headlines this summer when it partnered with Alphabet subsidiary Verily to develop sleep apnea treatments and connected health products.
On the record
“We’re thrilled to be part of a global healthcare leader that shares our mission, leveraging technology to improve the quality of life for seniors and those who care for them,” MatrixCare CEO John Damgaard said in a statement. “Out-of-hospital care today is incredibly fragmented, with individuals struggling to navigate across care settings, and providers often unable to assist. Like MatrixCare, ResMed’s software solutions smooth the path to faster, better care and a smarter way for clinicians to do business. The entire MatrixCare team and I look forward to joining forces with them.”