Samsung to buy Providence spinout Xealth

Samsung Electronics plans to acquire Xealth, a digital health company spun out of Providence in 2017.

Xealth helps healthcare providers digitally engage patients, allowing clinicians to order and monitor digital tools and programs. These include remote patient monitoring, digital therapeutics, mHealth apps and patient education resources. Xealth streamlines vendor integration, distribution and enrollment, and the associated patient data in a centralized platform. It also combines reporting and analytics across patient populations and physician groups.

Through the acquisition, Samsung aims to advance connected care by bridging the gap between wellness tools and medical care. Samsung offers a wide array of wellness tools, including smartwatches and smart rings. The press release notes that combining the consumer health information on these wearables with the Xealth digital health platform would enable the companies to link home health monitoring and clinical decision-making.

"We believe the acquisition of Xealth, with its accumulated expertise and extensive healthcare network, will be an anchor to accelerate Samsung's efforts to support health systems and digital health partners through a truly connected care," said TM Roh, president and acting head of the Device eXperience (DX) Division at Samsung Electronics, in the press release.

Xealth is the first technology spinout from Providence's Digital Innovation Group. It works with a network of more than 500 U.S. hospitals, including Advocate Health and UPMC, and has more than 70 digital health solution partners.

"Customer health data from wearables can fill in context that is missing to hospitals and bring more data analysis possibilities that were not available just with clinical records," said Mike McSherry, CEO of Xealth, in the press release. "Together with Samsung and our network of healthcare leaders, we will design a bridge between home health monitoring and clinical decision-making, with provider workflow considerations and patient engagement at the core of that effort."

The acquisition is expected to close this year, subject to customary closing conditions and regulatory approvals.

Anuja Vaidya has covered the healthcare industry since 2012. She currently covers the virtual healthcare landscape, including telehealth, remote patient monitoring and digital therapeutics.