3M Buys Fast-Growing Health Care Data Firm
3M Company said Friday that it has struck a deal to acquire Treo Solutions, a New York-based provider of analytics and other data to the health care industry.
Financial terms of the acquisition—which is pending regulatory approval but is expected to close during the second quarter—were not disclosed.
Treo works with health care providers, payers, and government agencies, delivering analytics data for more than 60 health plans. That data is designed to help health industry players cut costs.
Treo was founded in 2002, and it made Inc. magazine's latest list of the 5,000 fastest-growing private companies in America. The company's revenue exceeds $27 million, and it has experienced 131 percent growth over the past three years, according to the Inc. profile. (Many Minnesota companies also made the Inc. 5,000 list.)
3M said that Treo's services help clients redesign payment structures and transition them to “value-based care models.” The acquisition will benefit 3M’s health information systems business, which provides software and consulting services to hospitals and health systems, commercial payers, and federal and state agencies.
3M's 360 Encompass System allows clients to merge clinical and financial data and then analyze that information.
“This acquisition will make it possible to extend real-time data analytics and payment redesign worldwide, jumpstarting the many provider organizations that have adopted the 3M 360 Encompass System for computer-assisted coding in their transition to population health management,” 3M said in a statement.
Treo employs 85 people at its headquarters in Troy, New York, and offices in Colorado and Kansas. 3M, one of Minnesota's five largest public companies based on revenue, employs roughly 89,000 people in more than 70 countries.