On Thursday, 3M announced that it is exploring strategic alternatives for its global health IT business. These alternatives, all of which are focused on building upon the business’ strong foundation, could include:
– spinning-off its health IT business
– selling the health IT business entirely
– retaining and further investing in the existing health IT business within 3M.
3M Health Information Systems, a business of 3M Health Care, works with providers, payers, and government agencies to anticipate and navigate a changing healthcare landscape. 3M provides healthcare data aggregation, analysis, and strategic services that help clients move from volume-based to value-based health care, resulting in millions of dollars in savings, improved provider performance, and higher quality of care. 3M’s innovative software is designed to raise the bar for computer-assisted coding, clinical documentation improvement, performance monitoring, quality outcomes reporting, and terminology management.
3M currently supports more than 5,000 hospitals, as well as government and commercial payers that want to improve quality and financial performance. With trailing 12-month revenues of approximately $730 million, this successful business has delivered greater than 10-percent compounded annual growth over the past three, five and 10 years.
“As part of our ongoing portfolio management process, 3M is exploring alternatives for our Health Information Systems business, a recognized industry leader in health care coding software, services, and analytics,” said Inge G. Thulin, 3M chairman, president and chief executive officer. “Through this process, we are focused on determining the best path to benefit 3M, its stakeholders, and this business.”
Selection of a strategic direction is anticipated by the end of the first quarter of 2016. No decision has been made with regard to any alternatives and there can be no assurance that the exploration of strategic alternatives will result in any transaction. 3M has retained Goldman, Sachs & Co. as its investment banker to assist the company in exploring strategic alternatives.
3M Health Care, one of 3M’s five major business groups, provides world-class innovative products and services that help health care professionals improve the practice and delivery of patient care.
