Philips to pay $110M for home cardiac monitoring company

Royal Philips Electronics is extending its cardiac care services into the home.
The Amsterdam, Netherlands-based company announced Thursday it is acquiring Raytel Cardiac Services, a Windsor, Conn. -based supplier of home cardiac monitoring services, and other ancillary operations from Israeli-based SHL Telemedicine, Ltd. for approximately $110 million in cash.

“Heart disease is the number one killer in the West. So Philips has invested heavily over the years to become the top supplier to hospitals of medical equipment for managing heart disease,” said Ron Feinstein, CEO of Philips’ Home Healthcare Solutions business group. “Patients are living longer and healthcare costs are rising, so we’re looking for innovative and effective ways to support both patients and the healthcare system.”

“Raytel can help us extend the cardiac care cycle into the home,” Feinstein continued, “which is where patients prefer to stay, and where we see opportunities for addressing healthcare costs as well as quality of life issues.”

Raytel Cardiac Services, a division of the Raytel Medical Corporation, keeps track of its home cardiac monitors through monitoring centers, where trained technicians analyze incoming patient data and provide real-time patient information to prescribing physicians.
Philips officials say they hope to boost Raytel’s business by capitalizing on the company’s existing relationships with 15,000 referring physicians and cardiologists serving more than 200,000 patients annually.

Philips, which serves approximately 750,000 customers through its Lifeline products and services, aims to introduce Raytel clients to Lifeline as well as the company’s in-house line of remote patient monitoring products and services. In addition, the company hopes to develop home-based monitoring products and services to address congestive heart failure.

The activities being acquired by Philips are expected to have 2007 sales of approximately $55 million. Subject to regulatory approval, the deal is expected to close in the fourth quarter of 2007, at which time Raytel will become a part of Philips Home Healthcare Solutions.

Source: Healthcare IT News