IBM Acquires Merge Healthcare For $1B, Updates 'Watson' With Medical Imaging Software
To further upgrade Watson Health, IBM’s cloud-based healthcare computing system, IBM announced its acquisition of medical imaging company Merge Healthcare for $1 billion. This is the latest in a string of high-profile acquisitions and partnerships positioning IBM at the forefront of the management and optimization of “big data” in the healthcare industry.
As more medical devices connect to computers, med tech companies are looking for ways to harness the data these devices collect to improve patient care, further research, and develop treatment innovations. Watson Health is one component of IBM’s developing AI system, a secure cloud that collects from a variety of different health sources — including patients, hospitals, and research institutions — to paint pictures of disease and treatment management.
According to IBM, Watson is able to analyze large amounts of data and give cognitive, evidence-based answers to complex questions. To bolster Watson’s expertise and access, IBM has been forming strategic relationships and acquiring health-based software companies.
Merge Healthcare is a significant advancement to Watson’s capabilities because it is able to process a sizeable chunk of available healthcare data: images. John Kelly, senior VP of research at IBM, told the New York Times that images from x-rays, CAT scans, mammograms, and MRIs represent 90 percent of health data.
“Imaging is central to effective diagnosis and treatment… but it is increasingly important to share these images between providers to deliver high quality, cost-effective care,” said Brooks O’Neil, a Dougherty and Co. analyst, to Reuters.
According to the New York Times, Merge is the third of three major data-based acquisitions IBM has undertaken since the April launch of Watson Health. Explorys, a system for spotting patterns in disease management developed by the Cleveland Clinic, has access to data on over 50 million patients. Phytel, a Dallas-based software company, has developed a system for reducing readmission rates and improving patient care in hospitals.
IBM states that this is not the end of Watson’s evolution, either. Steve Gold, VP of IBM Watson, told Reuters, “Organically, we will continue to build and invest from a research perspective in core technologies.”
In addition to acquisitions, IBM has formed partnerships with some of the biggest names in technology including Apple, Johnson & Johnson (J&J), and Medtronic. IBM plans to bring its big data analytics to Apple products, and is working with J&J to develop apps that improve patient care and provide coaching solutions. IBM has also partnered with Medtronic to tackle diabetes management solutions.
IBM’s cloud is growing by the day, but it’s not without competition. According to Forbes, billionaire Patrick Soon-Shiong is developing a similar system called NantHealth, and a start-up named Flatiron Health is creating an analytics system for cancer treatment and research. Tidepool, which just signed a deal with J&J’s Animas, is building a cloud for type 1 diabetes management.
In April, John Kelly told Forbes he was confident that Watson’s strength and development would put IBM at the forefront of medical technology’s move into big data management.
“We are convinced that by the size and scale of what we’re doing we can transform this industry,” said Kelly. “I’m convinced that now is the time.”