3M Teams Up With Alphabet’s Verily For Population Health Management Tools

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3M Health Informations Systems, a business of 3M (NYSE:MMM), and Verily Life Sciences (formerly Google Life Sciences), an Alphabet company, announced an agreement to develop new population health measurement technology for managing clinical and financial performance. The joint technology platform will be used to analyze population-level data sets, with the aim of aiding hospitals to get meaningful information, which can be used to improve healthcare quality, while at the same time reduce costs. It combines 3M’s health data coding, classification, and risk-stratification tools, which are used by federal agencies, hospital associations, and state Medicaid agencies, with Verily’s data analytics, software tools, and algorithms, the two companies said.

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JaeLynn Williams, vice president and general manager of 3M’s health information systems division, stated that this joint technology platform could deliver benefits to clinicians worldwide. This platform also reflects the company’s commitment to driving innovation in this market. The platform will aid clinicians to address numerous healthcare challenges, including those associated with maintaining the security and privacy of health data. Furthermore, the platform would also help clinicians to evaluate performance metrics across multiple departments and procedures, as per 3M. It would also include quality and cost measurements, enabling clinicians to be better equipped to gauge trends, and make better informed decisions, based on the data at their disposal.

3M’s Health Care segment is expected to be a big revenue generator for the company in the long run. The company has witnessed a historically higher growth rate in this segment, as compared to its other segments, and has taken a number of steps to bolster growth in the future. The company made a decision to invest and further grow its Health Information Systems (HIS) business, instead of selling or spinning it off. This will be beneficial to the company in the long term due to the high growth expected from the Health Care IT market in the future. In 2015, the company’s revenue from its Health Information Systems division was $0.8 billion, with the addressable market size being $11 billion. This market is expected to grow at a compound annual growth rate of between 5% and 8% during the 2015 to 2020 period, and will be an important revenue generator in the years to come. In the second quarter of 2016, the company’s healthcare division reported sales of $1.4 billion, up 3% over the previous year. This platform will help to drive sales growth for the company, and will put it in a better position to bolster its earnings growth for the next several years.

The population health management (PHM) market was estimated at $8.5 billion in 2015 in the US, or 77% of the total global market, according to research firm MarketsandMarkets. It is expected to grow at a compound annual growth of 23.2% till 2020, reaching $31.63 billion worldwide. The growth in this market is being fueled by the implementation of the Affordable Care Act (ACA), incentives and investments by the federal government for the adoption of Healthcare Information Technology (HCIT), and the rapid growth in the aging population. The PHM market seems to be a hot topic these days; an hour before 3M-Verily’s agreement announcement, Siemens Healthineers also announced a deal with IBM Watson Health, to aid hospitals, health systems, integrated delivery networks, and other providers in bringing value-based care to patients with complex, chronic, and expensive conditions.

Population Health Management Market- US

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