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Zimmer Biomet has acquired telerehabilitation startup RespondWell, according to a news release. The deal comes just a few months after the Warsaw, Indiana orthopedics device business rolled out the Signature Solutions program to hospitals to help them improve patient outcomes, reduce readmissions and pare down medical costs.
The terms of the deal were not disclosed.
The value-based reimbursement landscape makes the kind of services Zimmer Biomet has added a good fit for hospitals and provider needs, said David Nolan, who works as a group president for Zimmer Biomet, according to the press release.
“Integrating an innovative and comprehensive telerehabilitation program into our Zimmer Biomet Signature Solutions offering addresses the emerging need for healthcare providers to oversee and optimize post-surgical recovery outcomes in order to maximize value across the entire episode of care,” Nolan said.
Zimmer Biomet is part of a broader trend of medical device companies adding services to support their med tech business. The Comprehensive Care for Joint Replacement model launched in April in which the Centers for Medicare and Medicaid Services pays a fixed amount for hip and knee replacement surgery.The program makes RespondWell a logical acquisition target for Zimmer Biomet.
A Deep-dive Into Specialty Pharma
A specialty drug is a class of prescription medications used to treat complex, chronic or rare medical conditions. Although this classification was originally intended to define the treatment of rare, also termed “orphan” diseases, affecting fewer than 200,000 people in the US, more recently, specialty drugs have emerged as the cornerstone of treatment for chronic and complex diseases such as cancer, autoimmune conditions, diabetes, hepatitis C, and HIV/AIDS.
RespondWell initially targeted the intersection between gaming and fitness. Its interactive exercise program called Fitness@Home is aimed at helping seniors get stronger after physicians deemed them to be a fall risk. The company later developed Therapy@Home as a rehabilitation tool for hip and knee replacement surgery patients.
Patients using Therapy@Home follow Maya, a coach avatar, in their exercise regime. Before the exercises start, users are first asked a series of questions designed to get the latest on their progress such as how they are feeling and the level of pain they are in. A little like a video game, they can track their progress on repetitions and receive encouragement along the way. If users do the exercise the wrong way — such as lifting the wrong leg — the program flashes instructions informing them to lift the other leg. It can also be adjusted to convey audio instructions.
Update For RespondWell, the acquisition makes the company part of Zimmer Biomet’s Connected Health team under the umbrella brand of Signature Solutions. Ted Spooner has upgraded his job title from RespondWell’s co-founder and former CEO, to vice president of Connected Health at Zimmer Biomet. In a phone interview, Spooner reflected on the 13-year evolution of his business. He noted that the company transitioned from fitness to healthcare in 2011 and that was a significant decision for the business given its exit.
Asked how investors responded to the deal, Spooner said: “The investors are very happy, especially me.”
He added: “We were lucky to find a partner who has the same vision and sees the opportunity to scale our solution for telerehab.”
