Samsung’s purchase of Xealth marks a significant step towards bridging the gap between wellness and medical care, with a focus on home health monitoring and clinical decision-making. Xealth, which originated as a spinout of the Providence health system in 2017, facilitates the prescription and management of digital health tools for healthcare providers, currently serving over 500 hospitals in the U.S. The company’s system integrates with a wide range of digital health solution partners, including Advocate Health and Banner Health.
The terms of the acquisition deal have not been disclosed, with the completion of the transaction pending regulatory approval later this year. Xealth’s services, which are integrated with electronic health records, enable patients to share information directly with providers, offering valuable insights into the performance of digital health tools. The startup has received backing from prominent health investors such as Providence Ventures, McKesson Ventures, Novartis, Cerner, and the MemorialCare Innovation Fund.
Led by CEO Mike McSherry, Xealth has garnered attention for its innovative approach to digital health since its inception. McSherry, who previously led Swype before its acquisition by Nuance, co-founded Xealth with Aaron Sheedy, a former colleague at Swype. The company, with 63 employees according to LinkedIn, raised new funding earlier this year and is ranked No. 155 on the GeekWire 200 list of top privately held tech startups in the Pacific Northwest.
Samsung’s move into the digital health space comes as the tech giant competes with industry rivals like Apple, Amazon, and Google in leveraging wearable technologies and sensors for health monitoring. The acquisition of Xealth underscores Samsung’s commitment to providing consumers with comprehensive health data while integrating this information into the broader healthcare ecosystem.
In a tweet, McSherry expressed excitement about the acquisition, highlighting the potential for bringing valuable insights to clinicians and patients to improve healthcare outcomes. Samsung’s foray into digital health aligns with its strategic focus on innovative technologies and services, despite recent challenges in its chip business as reflected in lower-than-expected Q2 results.
