3M to acquire M*Modal's cloud AI technology for $1B
3M has agreed to buy the technology arm of M*Modal, the clinical documentation company, for $1 billion. The move enhances 3M's portfolio with the addition of cloud-based artificial intelligence and speech recognition technology.
WHY IT MATTERS
The deal, expected to close in early 2019, will add 750 employees of M*Modal's technology business. The Pittsburgh-based company, which spun off from Carnegie Mellon University will maintain its transcription, scribing and coding services business.
3M Health Information Systems, which has more than 8,000 healthcare customers, develops technologies such as the 360 Encompass platform, which links clinical documentation tools with analytics for risk assessment to help providers and payers.
THE LARGER TREND
3M's acquisition of M*Modal comes in 2018, which has been called "the year of voice tech in healthcare." Both companies are both focused on improving accuracy of documentation and boosting operational efficiency providers and payers alike.
Clinical documentation has been a hot topic this year, as CMS unveiled a proposed rule with new requirements and one report took physicians to task for taking too many CD shortcuts. Cloud-based voice recognition technology like M*Modal's is increasingly leaned upon by physicians looking for accuracy and efficiency.
ON THE RECORD
"This acquisition expands the capabilities of our revenue cycle management and population health platform," said Mike Vale, executive vice president, 3M Health Care Business Group, in a statement.
M*Modal President Michael Finke added: "By combining capabilities, we can more quickly deliver on our mission of bringing conversational AI and ambient intelligence directly into clinical workflows."
Healthcare IT News is a publication of HIMSS Media.