Last November, MatrixCare was acquired by ResMed, a leader in cloud-connected medical devices and out-of-hospital software-as-a-service (SaaS) business solutions. I invited the president of ResMed’s SaaS business, Raj Sodhi, to explain the company’s strategy and MatrixCare’s role in that.
Hello Raj. Thanks for joining us today. How long have you been with ResMed?
I joined ResMed in 2012 through the acquisition of Umbian, Inc., of which I was co-founder and president.
So, your organization was acquired just like MatrixCare. How has that experience informed your approach to the MatrixCare acquisition?
Acquisitions are part of the modern business. When we look at potential ResMed acquisition candidates, we assess technology, strategic fit, business fundamentals and synergies, but most importantly we look at the company culture and key talent. Our experience with the leaders of MatrixCare was a key determinant of our decision to move forward. We have a high degree of confidence in John Damgaard and the capabilities of the MatrixCare team, so we’re not out to “fix” what is already working so well.
What would you say to those who claim ResMed is a hardware/device company and has no experience in SaaS-based services?
I would say that we have a lot more work to do in creating awareness for who ResMed is, and what we do! A few key points I’d want to highlight on this topic are that ResMed has built and demonstrated core competencies and expertise across devices, connectivity, software platforms, data, interoperability, and advanced analytics. Through these, we have transformed the treatment of sleep-disordered breathing (SDB) and are now recognized as the global leader in connected devices that come with cloud-based software solutions for providers and patients. We also have a proven track record in acquiring, managing and evolving advanced software platforms. Umbian is a great example, but more recent examples are Brightree and HEALTHCAREfirst. And then perhaps, the final point, ResMed, including our software solutions, has shown strong business results since we were founded in 1989. Our 2025 strategy is focused on revolutionizing healthcare in out-of-hospital care settings, and we have the experience, capabilities, and resources to deliver on this vision.
MatrixCare is known for innovation and an aggressive R&D agenda. Won’t the acquisition dilute its focus on the existing roadmap?
That’s not our intention and it’s not our approach. They say that past behavior is the best predictor of future performance, so let’s look at another recent acquisition in the out-of-hospital space, ResMed’s acquisition of Brightree, the leader in HME/DME business management software, in 2016. Since then, Brightree has dramatically enhanced and improved their software and service offerings under ResMed ownership and extended their leadership position, including numerous feature enhancements and several acquisitions. ResMed hasn’t slowed down Brightree’s innovation— we’ve actually added fuel to it. Likewise, MatrixCare will remain essentially operationally independent from ResMed to ensure that there won’t be any of the distractions often associated with post-merger operational integration. From an ownership perspective, our goal is to provide resources as needed to help accelerate our joint strategy and work on building out the broader software ecosystem that ultimately will benefit all of our customers, as well as the individuals that they serve. In other words, we believe that MatrixCare will be able to achieve its roadmap milestones more quickly as a result of the ResMed acquisition.we believe that MatrixCare will be able to achieve its roadmap milestones more quickly as a result of the ResMed acquisition. Click To Tweet
Where do you see ResMed and MatrixCare in three years?
I believe the next three years will see a lot of provider consolidation in the out-of-hospital space, as well as in the technologies that serve those organizations. The area of connected health is growing at a much faster clip than other aspects of healthcare technology, and ResMed is already a global leader in this space with more than 66 million lives connected to our solutions before factoring in MatrixCare. And MatrixCare is further along on the connected health journey than many of its competitors—so I believe that, together, we are very well-positioned to serve providers who are looking to improve transitions of care and improve efficiencies via an integrated software ecosystem.