3M has now entered into a definitive agreement to acquire the latest technology business of M*Modal, a Pittsburgh, Penn based healthcare technology provider, for a total enterprise value of around $1 Billion.
The acquisition is expected to be close in the first half of 2019, which is subject to closing conditions and regulatory approvals, expands 3M’s health information system capabilities. 3M will be going to maintain a strategic business relationship with the M*Modals remaining transcription, coding and scribing services business, which is not even a part of this transaction to ensure the continuity and customer support.
The company which is led by the Michael Finke. M*Modal is a healthcare technology provider of advanced clinical documentation solutions, which enabled the physicians and hospitals to enrich the content of patient electronic health records for improved healthcare and compressive billing integrity.
The company also provides the advanced cloud-based Speech Understanding Technology and data analytics facility that enables the clinicians and physicians to include the context of their patient narratives into the electronic health records in just a single step, further enhancing their production efficiency and quality of patient care at the point of care.
The Annual revenue of the M*Modal Technology business is also estimated to be of around $200 Million.
3M Health Information System business works with more than 8000 healthcare organizations across the globe, as both the payers and providers to deliver the software and services across the continuum of care. 3M his offerings include the 3MTM 360 EncompassTM software platform, to combine the clinical documentation system and risk assessment methodologies to help in accurately capture, advance and analyze patient information.
More than 750 employees supporting the latest technology business of the M*modal are expected to join the 3M upon the completion of the transaction deal.
“This acquisition is going to builds on our strategic commitment to invest in our Health Information Systems business and expands the capabilities of our population health and revenue cycle management priority growth platform,” said Mike Vale, EVP of 3M's Health Care Business Group.
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