Philips acquires Boston-based patient navigation startup Medumo

Philips has been expanding its health technology division with acquisitions particularly in the area of radiology informatics. It's also targeted startups in sleep and respiratory care. (andrei_r/GettyImages)

Technology company Philips has acquired Boston-based startup Medumo, the developer of patient navigation and engagement solutions.

Medumo, which launched in 2013, uses a combination of email and SMS to help hospitals communicate more effectively with their patients. The company has raised $2.1 million in venture capital funding and the company's partners include Boston Children's Hospital and Harvard's Brigham Health.

Financial terms of the deal were not disclosed. 

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A Philips spokesman told Fierce Healthcare the acquisition will bring an "advanced diagnostic patient management offering to Philips’ expanding diagnostic digital services portfolio.”

"Efficient digital health services for an enhanced patient experience and care provider productivity are becoming critical differentiators. By combining Medumo’s direct patient interaction platform with Philips’ diagnostic imaging systems, enterprise diagnostic informatics, and operational performance management capabilities, Philips aims to deliver a high-value solution to our customers that drives their top- and bottom-line improvements by streamlining labor-intensive workflows," the spokesman said in a statement.

Philips uses selective M&A as an "add-on to fill specific gaps in its portfolio," the spokesman said.

Medumo executives said in a statement on the company's website, "Our partnership with Philips will empower us to continue to serve our existing customers while further expanding our connection to more patients and providers. Philips' commitment to global health perfectly complements Medumo's commitment to improving patient navigation."

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Philips has expanded its health technology division with acquisitions particularly in the area of medical imaging and home care. The company recently bought Carestream's health IT business to expand its radiology informatics business.

The Medumo platform is complementary to Philips’ VitalHealth population health management technology, the Philips spokesman said. Philips acquired VitalHealth in 2017.

Philips also has targeted startups in the area of sleep and respiratory health by acquiring NightBalance, a sleep apnea solution, and Xhale Assurance, a company that develops pulse oximetry sensors. 

Medumo’s technology, which combines mobile communication and artificial intelligence, has exchanged over 5 million patient interactions and serves over 25 hospitals by sending notifications and instructions to patients to ensure they show up prepared for their procedures, surgeries, and appointments, the company said. 

Loss-to-follow-up, missed appointments, and improper procedure preparation or discharge follow up leads to worse patient outcomes and is a multi-billion dollar a year problem to hospitals, Boston Children's Hospital executives said when the partnership with Medumo was announced in January.