Yahoo Finance ResMed's Out-of-Hospital Line to Grow With MatrixCare Buyout
In an effort to expand its out-of-hospital software portfolio, ResMed Inc. RMD has recently entered into a definitive agreement to acquire the privately held MatrixCare for $750 million. This is a long-term post-acute care software, a complete solution for growing organizations that need to successfully manage risk in care delivery across the long-term post-acute care (LTPAC) spectrum.
MatrixCare’s electronic health record (EHR) solution supports a wide range of long-term care settings that helps increase patient management efficiencies and delivers a superior clinical care. Its offerings include point of care, lead and referral management, claims processing plus payroll and nutrition management among others.
Per ResMed, this acquisition will enhance its ability to improve patient transitions of care and provider efficiencies. Post the integration of MatrixCare, the company’s portfolio will comprise Brightree, HEALTHCAREfirst and MatrixCare. ResMed believes that this will streamline its transitions of care creating better outcomes for patients, caregivers and out-of-hospital healthcare providers.
Per the financial terms of the transaction, the deal is expected to be completed by the end of second-quarter fiscal 2019, subject to certain closing conditions and regulatory approvals.Post closure, the transaction is estimated to be immediately accretive to ResMed’s adjusted earnings per share and its adjusted gross margin.
On culmination of the transaction, MatrixCare will continue to operate as a standalone business within ResMed’s SaaS portfolio with targeted commercial, technical and operating links to ResMed and Brightree. There will be no instant changes to management, locations or business processes.
The company is currently seeking treatment for chronic lung disease patients and helping them stay out of hospital by lending with a high quality of life within the comforts of their own homes. According to the company, such enhanced connected health solutions for out of hospital medical software market are aiding ResMed to continue with the momentum.
However, in the said market, ResMed faces stiff competitions from players like Masimo Corporation MASI and Natus Medical Incorporated BABY.
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