On Monday, Medtronic announced a definitive agreement to acquire RF Surgical Systems, Inc., a medical device company focused on the detection and prevention of retained surgical items (sponge, gauze or towel) for approximately $235 million. Additional terms of the acquisition were not disclosed. The acquisition of the Carlsbad, Caliornia-based company supports Medtronic’s economic value strategy. Partnering with stakeholders in healthcare, Medtronic is moving to offer products and services that deliver clinical and economic value to the healthcare system. Medtronic is focused on leading the shift to value based healthcare, which rewards those who can deliver quality healthcare to more people at the most affordable cost.
As part of the acquisition details, Medtronic will report the RF Surgical business as part of its Surgical Solutions division within the Minimally Invasive Technologies Group. The transaction is expected to meet Medtronic’s long-term financial metrics for acquisitions, and the annualized earnings impact of this acquisition is not expected to be material. The deal is expected to close in August 2015, pending regulatory approvals.
The RF Surgical system is designed to be used as an adjunct to manual counting methods to help prevent such surgical sponge-related “never events,” which are serious, largely preventable, and harmful clinical events. The proprietary detection system uses a low radio frequency (RF) signal to track and detect surgical gauze, sponges and towels (embedded with a RF tag) through blood, dense tissue and bone. The technology aims to reduce patient complications due to surgery, lessen unnecessary procedures, and increase efficiencies within the operating room.
“Patients are our priority. Improving patient safety and outcomes is our daily focus, which directly aligns with the RF Surgical technology, a simple and cost-effective solution to avoidable complications in surgical procedures,” said Chris Barry, senior vice president and president of the Surgical Innovations business, Minimally Invasive Therapies Group at Medtronic.
