On November 27, 2017, Medtronic (MDT) announced the launch of its new telehealth solutions as part of its contract with the United States Department of Veterans Affairs (or VA). The contract between the MCMS (Medtronic Care Management Services) and the VA for Home Telehealth Devices and Services started in 2011. It has served more than 310,000 veterans to date.
Medtronic has launched an expanded suite of telehealth solutions. It includes an extensive library of disease management protocols and a portfolio of patient engagement platforms.
The Health Care Select Sector SPDR ETF (XLV) holds ~3.5% of its portfolio in Medtronic. Medtronic’s peers Abbott Laboratories (ABT), Zimmer Biomet Holdings (ZBH), and Boston Scientific (BSX) make up approximately 2.6%, 0.78%, and 1.1%, respectively, of XLV’s total portfolio.
New telehealth solution features and functions
MCMS is launching a portfolio of telehealth solutions to the VA. These solutions are designed for chronic, complex, and co-morbid patients. The service includes integrated diagnostic devices and new technology platforms for meeting different needs and varied levels of comfort with technology.
MCMS’s web-based software for clinicians securely aggregates and organizes the information submitted by patients. The software provides an action-oriented view of the patients to the clinician.
According to the company’s November 27, 2017, press release, “Veteran patients who previously used VA telehealth programs for at least one year demonstrated a 19 percent reduction in hospital admissions, and an average of four percent reduction in care costs.”
According to Sheri Dodd, vice president and general manager of MCMS, “We are honored to continue our partnership with the U.S. Department of Veterans Affairs to provide telehealth technology and solutions to veteran patients.
“Our expanded offering is designed to provide more patient choice and flexibility to better meet individual health needs. We continue to deliver on our commitment to the VA, and are excited to start doing so under the terms of this new Home Telehealth contract.”