3M to pay $1B to buy M*Modal’s AI-powered systems
3M is expanding its footprint in healthcare IT with a $1 billion acquisition of the technology business of M*Modal, a provider of clinical documentation solutions.
The definitive agreement will add M*Modal’s technology for cloud-based conversational artificial intelligence-powered systems to 3M’s existing line of healthcare information technology solutions.
3M will maintain a strategic business relationship with M*Modal’s remaining transcription, scribing and coding services business, which is not part of this transaction, to help ensure continuity and strong customer support.
Annual revenue of M*Modal’s technology business is estimated to be approximately $200 million.
3M believes the acquired M*Modal lines of business will help physicians better capture and improve the patient narrative “so they can spend more time with their patients and provide higher quality of care.”
3M Health Information Systems business works with more than 8,000 healthcare organizations worldwide, both providers and payers, to deliver software and services across the continuum of care. 3M HIS offerings combine clinical documentation systems and risk assessment methodologies to help accurately capture, analyze and advance patient information.
“This acquisition builds on our strategic commitment to invest in our Health Information Systems business and expands the capabilities of our revenue cycle management and population health priority growth platform,” says Mike Vale, executive vice president of the 3M Health Care Business Group. “Together, we will enable doctors to improve the patient experience, while enhancing documentation accuracy and operational efficiency for both providers and payers.”
“We are excited that we can further accelerate our mission of creating time to care for more clients with the resources and global reach of 3M,” says Michael Finke, president of M*Modal. “By combining capabilities, we can more quickly deliver on our mission of bringing conversational AI and ambient intelligence directly into clinical workflows. This is a great outcome for our clients, partners and team.”
Approximately 750 employees supporting the technology business of M*Modal are expected to join 3M after completion of the transaction, set for the first half of 2019. The business is based in Pittsburgh.