Medtronic Expands Into Disease Management

Acquisition of Cardiocom Fits With New Law’s Push to Reduce Hospital Readmissions

BY CHRISTOPHER WEAVER

Medtronic Inc. said it has acquired Cardiocom LLC, a closely held disease-management and patient-monitoring firm, in a move that the device maker hopes will turn increasing concerns about health spending to its advantage.

The $200 million, all-cash deal puts Medtronic in the business of working with hospitals and insurers to limit the costs of treating patients with chronic diseases, such as heart failure and diabetes, and gives it a hand in the care of patients who don’t need costly, high-tech implantable devices that are Medtronic’s core offerings.

Cardiocom’s products, such as home glucose monitors for diabetics and weight scales that …