Medtronic Moves Into Remote Health Monitoring With Latest Acquisition

Medical device behemoth Medtronic (Minneapolis, MN) purchased Cardiocom for $200 million in cash. With the purchase, the company is now expanding into the chronic disease management market.

Cardiocom was founded in 1997. The company's technology gives healthcare providers the ability to monitor patients from a remote location. The company focuses on chronic health conditions like heart disease and diabetes. Through the use of interactive scale systems, glucose monitors and other devices, the company's platform can keep physicians informed on a patient's current health condition.

As part of the Affordable Care Act, healthcare facilities are penalized for high readmission rates. One potential way to reduce hospital readmission rates is by monitoring a patient's vital signs from his or her home. Armed with Cardiocom, Medtronic can respond to a shifting healthcare market and improve its patient reach.

For example, Medtronic manufactures heart failure implants that carry a price tag of $30,000. However, less than one-sixth of patients are able to receive this implant. By leveraging its latest acquisition, the company can provide remote monitoring services for heart failure patients, diabetics and more.

Earlier this this, GBI Research reported that the remote health monitoring market is forecasted to expand from $104.5 million last year to $296.5 million over the next six years. This represents forecasted market growth of 184%.