Diversified conglomerate 3M Company (MMM) recently strengthened its healthcare analytics division by inking a definitive agreement to acquire leading healthcare data analytics and business intelligence provider, Treo Solutions, for an undisclosed amount. However, the news failed to draw any reaction from investors as share prices remained relatively flat at $132.20 at the close of trading on Feb 24.
Headquartered in Troy, N.Y., Treo Solutions offers healthcare data analytics to reduce costs and increase the desired health outcomes by partnering with healthcare providers, payers and government agencies. Since its inception in 2002, the company has generated over $20 million in savings by using data analytics to redesign payment structures and transition payer and provider clients to value-based care models.
The acquisition extends real-time data analytics and payment redesign schemes to various healthcare providers that have adopted the 3M 360 Encompass System for computer-assisted coding for population health management. This in turn will offer customers an easy access to more comprehensive data about a patient across all sites of care to better manage costs and improve patient outcomes under new risk-sharing care models.
3M Health Information Systems, an operating unit of 3M, provides software and consulting services to hospitals and health systems, commercial payers, and federal and state agencies to compile, classify and analyze health information. It offers specialized services such as computer-assisted coding, clinical documentation, data interoperability and performance monitoring to help healthcare organizations achieve better clinical and financial performance.
3M, together with its subsidiaries, operates as a diversified technology company with manufacturing operations spread over 70 countries. The company aims to deliver innovative security solutions to businesses and governments worldwide, thus maintaining the security of people and documents.
3M currently has a Zacks Rank #2 (Buy). Other stocks that look promising and are worth a look in the industry include Marubeni Corp. (MARUY), Hutchison Whampoa Ltd (HUWHY) and Mitsubishi Corp. (MSBHY), each carrying a Zacks Rank #2 (Buy).
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