Proving the Business Case for the Internet of Things

Philips buys Wellcentive to expand population health management

Steve Rogerson
August 9, 2016
Philips is to acquire Wellcentive, a US-based provider of population health management software. Financial details of the transaction have not been disclosed. The company has also launched a range of health wearables.
In population health management, Philips already offers enterprise telehealth, home monitoring, personal emergency response systems and personal health services that address multiple groups within a population from intensive ambulatory care for high-risk patients to prevention and personal health programmes for the general population.
Wellcentive complements Philips’ portfolio with cloud-based IT services to import, aggregate and analyse clinical, claims and financial data across hospital and health systems to help care providers deliver coordinated care that meets new healthcare quality requirements and reimbursement models.
“With this strategic acquisition, we will strengthen our population health management business and its leadership, as health systems gradually shift from volume to value-based care, and provide more preventative and chronic care services outside of the hospital,” said Jeroen Tas, Philips’ CEO for connected care. “Our sweet spot is at the point of care as we give consumers, patients, care teams and clinicians the tools, such as remote monitoring and therapy devices, to optimise care. Wellcentive will provide our customers with the ability to collect data from large populations, detect patterns, assess risks and then deploy care programmes tailored to the needs of specific groups.”
Wellcentive and its employees will become part of the population health management business group within Philips. Tom Zajac, CEO of Wellcentive and an experienced healthcare industry leader, will lead this business group.
“Over the past eleven years, the Wellcentive team has focused on delivering data-driven clinical, financial and human outcomes for our customers as they provide care management for more than thirty million patients,” said Zajac. “Combining forces with Philips and its broad portfolio of health technologies and global reach will create a great foundation to accelerate growth in connected care – from healthy living and prevention, to diagnosis, treatment and home care – enabling consumers, providers and health organisations to benefit from our combined, stronger offering in population health management.”
Wellcentive’s applications will be integrated in the Philips Healthsuite cloud, the company’s digital enabler for connected health. One example of Philips’ existing care programmes for population health management is the intensive ambulatory care programme: this combines telehealth technologies and population health management software to help care teams monitor and coach patients at home. It aims to improve patient outcomes and care team efficiency, and prevent patients from entering the hospital, where costs are significantly higher.
Founded in 2005 and headquartered in Atlanta, Georgia, Wellcentive employs approximately 115 employees. The company has a strong customer base in the USA.
Philips has launched a range of wearable technologies and the first in a series of personal health programmes that empower consumers to take greater control of their health. The medical-grade health monitoring devices – a health watch, connected scale, blood pressure monitor and thermometer – and a fully integrated companion HealthSuite health app are available on the company’s web site.
The products are designed to help those at risk of chronic disease start measuring, keep monitoring and stay motivated in creating sustainable behaviour change. Each programme comprises connected health measurement devices, an app-based personalised programme, and secure, HIPAA-compliant cloud-based data analysis.

“Driving meaningful innovation to help improve people’s health and wellbeing is part of our DNA at Philips,” said Jorgen Behrens, business leader at Philips. “We have a 100-year heritage in providing healthcare, from oral health to cardiac care. We’re the only company with such extensive healthcare and consumer lifestyle expertise. We combine deep clinical know-how and rich data, consumer insights and advanced technology to help individuals along the whole of their health journey. Our personal health programmes have been developed with leading doctors, psychologists and other experts. They will allow individuals to accurately measure vital signs to understand how lifestyle choices affect their body; set goals and monitor their progress, and stay motivated.”