Medtronic Buys Stake In Italian Co., Eyes Hospital Services
Medtronic, Inc., said Tuesday that it purchased a 30 percent equity stake in an Italian medical company as it expands from being a medical device provider to offering services to manage patient care.
The Fridley-based company did not disclose how much it paid for its stake in Novedrate, Italy-based NGC Medical Spa (NGC).
Medtronic also announced the formation of Medtronic Hospital Solutions, a new business that will focus on developing partnerships with hospitals to provide services directly related to “hospital operational efficiency.”
Tuesday’s announcements align with the company’s step in early August to acquire Chanhassen-based Cardiocom, a privately held provider of “telehealth” and disease management services, for $200 million in cash.
“The creation of this new business within Medtronic underscores our commitment to develop innovative services and solutions that create efficiencies, address costs, and improve patient access and outcomes for a broader set of hospital customers,” CEO and Chairman Omar Ishrak said in a statement. “With today’s announcement, we have now formed a Hospital Solutions business aimed at addressing efficiency and operational improvement exclusively focused on delivering better clinical and economic outcomes and value for hospitals.”
The company said the first goal of its new business is to offer services throughout Europe to manage and modernize catheterization lab (cath-lab) facilities.
Medtronic said it is partnering with NGC because the company specializes in managing outsourced cath-labs in Italy. Under the terms of Medtronic’s agreement, NGC’s business will expand beyond Italy.
According to Medtronic, its new Hospital Solutions business is set to provide services for two institutions in England—the University Hospital of South Manchester NHS Trust and Imperial College Healthcare NHS Trust in London.
Per its deals with those hospitals, Medtronic said it will manage the daily operations of their cath-labs, provide the latest medical technology and infrastructure, and develop the local cardiac services markets.