Samsung Electronics Acquires Xealth, Expanding Its Healthcare Footprint

Samsung Electronics has made a significant move in the healthcare sector by acquiring Xealth, a digital health platform company. This strategic acquisition aims to bolster Samsung's efforts to integrate data from its wearables and devices into clinical workflows and electronic medical records.

Acquisition Details and Strategic Vision

Samsung Electronics has purchased Xealth for an undisclosed sum, making it a wholly owned subsidiary. Mike McSherry, CEO of Xealth, will retain his position and continue to lead the company. The acquisition is seen as a cornerstone of Samsung's "care at home vision," which seeks to connect and bridge wellness and medical care.

TM Roh, President and Acting Head of the Device eXperience Division at Samsung Electronics, stated, "We believe the acquisition of Xealth, with its accumulated expertise and extensive healthcare network, will be an anchor to accelerate Samsung's efforts to support health systems and digital health partners through a truly connected care."

Xealth's Capabilities and Network

Xealth, a Fierce 15 of 2023 honoree, was spun out of the Providence health system in 2017. The company provides a platform that enables health systems to deploy, integrate, and manage digital health tools. Providers can prescribe and monitor digital health content, apps, and services as easily as they would medications.

The acquisition gives Samsung direct access to a large network of hospitals. Xealth works with more than 30 large health systems and 500 hospitals, integrating more than 80 digital health solutions. Its health system customers include Allina Health, Atrium Health, Mass General Brigham, Advocate Health, UPMC, and Duke Health, among others.

Implications for Wearable Technology in Healthcare

The merger of Samsung's advanced wearable technology with Xealth's digital health platform is expected to create a strong link between home health monitoring and clinical decision-making. This integration could significantly enhance the provider-patient relationship by providing more comprehensive and continuous health data.

McSherry is optimistic about the future of wearables in healthcare, stating, "I think wearables bring tremendous value in both people monitoring and managing their own health as well as the remote monitoring and quarterbacking of hospital systems and providers to give the notice and oversight and interventions as necessary."

With approximately 44% of U.S. adults owning wearable health tracking devices, according to the 2023 Rock Health Digital Health Consumer Adoption Survey, the potential for integrating this data into clinical care is substantial. However, making this data useful for providers and hospitals has been a challenge that Samsung and Xealth aim to address through their combined efforts.