UPMC, medCPU launch strategic partnership to develop innovative care technology
UPMC and medCPU have entered into a strategic partnership in which UPMC will take a majority interest in the technology innovator, become a customer of medCPU’s real-time decision support solutions and co-develop additional products with the goal of improving patient outcomes.
As part of this transaction, UPMC has initiated a tender offer to purchase stock from existing non-employee medCPU shareholders and expects to hold majority ownership in the privately held company when the offer is completed in the second quarter of this year, according to the provider. In addition to the stock purchase, UPMC will lead an investment round of $35 million in new capital to accelerate the expansion of New York-based medCPU. Existing medCPU shareholder Merck Global Health Innovation Fund is also participating in this round.
“Our partnership with medCPU will provide UPMC with technology and solutions that will be immediately valuable to our clinicians and patients. Longer term, this powerful technology will enable the development of other data-dependent applications in such critical areas as care management, population health and consumer engagement,” said Tal Heppenstall, president of UPMC Enterprises, the commercialization arm of UPMC which led this investment. “medCPU is a perfect example of the kind of technological innovation nurtured by UPMC Enterprises to help us transform the delivery of care, not only at UPMC but around the world.”
medCPU has more than 60 hospital facilities among its clients. The company is opening a Pittsburgh office, where it will hire more than 20 engineers and other staff to work with UPMC to co-develop additional products and to enhance its existing solutions.
“We are excited to have UPMC as a majority partner and investor,” said Sonia Ben-Yehuda, president and co-founder, medCPU. “Having access to the clinical, technological and operational expertise of one of the country’s leading integrated health care providers and insurance systems will enable medCPU to rapidly expand our current capabilities and leverage our technology to greatly impact an industry that is moving quickly to value-based care.”
Editor
Editor Beth earned a bachelor’s degree in journalism and master’s in health communication. She has worked in hospital, academic and publishing settings over the past 20 years. Beth joined TriMed in 2005, as editor of CMIO and Clinical Innovation + Technology. When not covering all things related to health IT, she spends time with her husband and three children.