Under the “far-reaching strategic partnership,” UPMC has commenced 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 Q2 2016. In addition, UPMC will lead an investment of $35 million in new capital to medCPU, with the company’s existing shareholder Merck Global Health Innovation Fund also participating in the round.
“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,” Tal Heppenstall, president of UPMC Enterprises, said in a statement. “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 promises to overcome many of the obstacles that currently make it difficult to aggregate and normalize information across siloed data systems.medCPU, which already counts more than 60 hospital facilities among its clients, 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.
The company’s solution addresses the healthcare IT challenges of interoperability, capturing all relevant patient data, and understanding free text, dictation, and structured data from electronic medical records (EMR) and ancillary systems. This technology is said to overcome many of the obstacles that currently make it difficult to aggregate and normalize information across siloed data systems. Also, the solution promises to reduce “alert fatigue” and improve response rates, thus avoiding clinical errors and reducing costs.
“Our partnership with medCPU will help drive the clinical pathways developed by our leading clinicians to the point of care, where it matters most,” Steven Shapiro, M.D., chief medical and scientific officer of UPMC, said in a statement.