The Medtronic Effect: 3 Trends for Medical Device Company Diversification (OrthoSpineNews)
Medtronic, one of the largest medical device manufacturers in the world, made headlines recently with its $200 million acquisition of Cardiocom, a disease management and patient monitoring firm.
Though one of the first major medical device companies to move into the patient monitoring segment, Medtronic will certainly not be the last, says Paul Teitelbaum, managing director for Mesirow Financial. He believes the device powerhouse is on the front end of an industry-wide shift toward telemedicine, home healthcare and other revenue expansion investments.
Device companies are under pricing pressure, as well as increasing commoditization and scrutiny over utilization, he says. Other companies will soon be following Medtronic’s lead of looking for product and service diversification. Here are three trends to expect from medical device companies.
1. Home health. Medtronic’s acquisition points to growth in the home health sector, an area most device manufacturers haven’t invested in much in the past but which will become increasingly important with the rise of accountable care originations and the ...
