A year ago, I proposed the idea that MedMined might someday follow Emageon after they successfully completed their initial public offering (IPO):
“I’d like to believe that MedMined can follow in the footsteps of Emageon,” [Curtis Palmer] said. It seems to have the same type of system software that appeals to the hospital market, he said, adding “I think they have the same long-term growth that Emageon has just experienced.”
I didn’t predict the mode by which MedMined would find its way to an “exit”, knowing that very very few companies pursue the IPO route, opting instead for an M&A transaction more often than not.
This morning I awoke to read a Google Alert from the Wall Street Journal that “Health-care products and services company Cardinal Health Inc. is expected to announce today its acquisition of MedMined Inc., a closely held Birmingham, Ala., data-mining company that helps hospitals track …”.
Larry Holt, Director of Researcher at the Birmingham Regional Chamber of Commerce, told me by email, “I really think this speaks to the strength of Birmingham’s innovation in the medical technology field. Cardinal Health is #19 in the Fortune 500, with $75 Billion in sales. I think it speaks volumes that a company with a $1 Billion-dollar R&D budget acquired MedMined.” I couldn’t agree more!
The Birmingham Business Journal is reporting today that “MedMined spokeswoman Amy Geus says the company’s operations will ‘absolutely remain in Birmingham'”, which is *GREAT* news for our booming tech community. Reuters, UPI, and Associated Press have moved this story across their wires, along with nearly a dozen other online stories (as of this writing). Unfortunately NOT ONE of these three wire stories mention that MedMined is based in Birmingham, Alabama <ugh!>.
The Birmingham News is expected to be working on a story for tomorrow’s paper, supposing that they still want to cover it after the BBJ ran their article online this morning. The official release from Cardinal Health follows…
Cardinal Health To Acquire Medical Analytics Firm, MedMined
DUBLIN, Ohio, July 12, 2006 — Cardinal Health, the leading provider of products and services supporting the health-care industry, today announced plans to acquire privately held MedMined, Inc., a leader in technology and services that identify and prevent hospital-acquired infections.
The acquisition will immediately extend Cardinal Health’s portfolio of patient safety solutions in the areas of hospital-acquired infections and antimicrobial management. Terms of the agreement were not disclosed.
Reducing Hospital Infections
Hospital-acquired infections directly affect patient outcomes and are estimated to cost the health-care industry billions of dollars each year. Current estimates are that one out of every 20 patients gets an infection as a result of hospitalization, leading to higher costs, longer hospital stays and a greater risk of death.
Using patented data-mining methods to analyze hospital records, MedMined helps identify specific opportunities to manage infections and change processes to prevent future infections. The data may also be used to efficiently report infection rates, enabling hospitals to provide the public with meaningful information from which to make comparisons. Many hospitals using MedMined’s Data Mining Surveillance® service have achieved a significant financial return in the first year of use by improving practices, reducing infection rates and lowering non-variable reimbursement costs.
MedMined services are currently used in approximately 185 hospitals in more than 25 states and are made available to local hospitals for quality initiatives through Blue Cross Blue Shield in six states: Alabama, California, Pennsylvania, New Jersey, New York and Texas.
“Hospitals have a long history of striving to prevent infections and MedMined’s techniques now provide them with information that complement their safety initiatives and support measurable improvements,” said David Schlotterbeck, chief executive officer of Pharmaceutical and Medical Products for Cardinal Health.
“MedMined advances Cardinal Health’s long-standing commitment to help our hospital partners improve safety by reducing variations in clinical practices. There are significant opportunities to extend MedMined’s data-mining and technology-based services to the medication management solutions we offer today with our Alaris and Pyxis products.”
Stephen Brossette, president of MedMined added, “We are very excited to join one of the world’s premier health-care companies. Cardinal Health shares our vision for patient safety and already has leading medication safety and outcomes measurement offerings that fit well with our hospital-acquired infection solutions. Given Cardinal Health’s breadth and depth of knowledge and experience in managing medications in hospitals, we expect to find additional opportunities to apply our patented data-mining methods to deliver value to customers.”