Omnicell acquires MTS for $156M

MOUNTAIN VIEW, CA – Omnicell, the medication and supply management firm, has completed its acquisition of St. Petersburg, Fla.-based MTS Medication Technologies, which develops medication adherence packaging systems.
 
First announced May 2, the $156 million acquisition is aimed toward emerging accountable care organizations (ACOs) and will see Omnicell and MTS working to integrate medication management across the broader spectrum of care.
 
MTS serves 6,000 pharmacies worldwide, providing automated packaging systems designed to help solve the critical problem of medication non-adherence. This issue has been estimated to cost up to $290 billion annually and is blamed for some 125,000 deaths per year. The Centers for Medicare & Medicaid Services (CMS) estimates that 11 percent of all hospital admissions are related to this issue.
 
“We believe that the addition of MTS to the existing Omnicell solutions uniquely positions Omnicell in the industry to supply the new demands for tracking and managing treatment beyond the acute care setting and use these capabilities to cut costs and improve outcomes," said Randall Lipps, chairman, president and CEO of Omnicell.

MTS’s medication management technology is used by institutional pharmacy providers to supply long-term and non-acute care facilities with single-dose, 30-day blister card medication packages to help nurses adhere to prescribed orders. In addition to single-dose solutions, MTS develops multi-dose adherence packages that help patients and caregivers in the home to manage medication administration, by providing all the doses required at a single administration time in a single package.
 
“Increasingly, health systems have strong financial and patient satisfaction incentives to actively work to reduce hospital readmissions, and medication adherence is a key component," said Lipps. "With the addition of MTS, Omnicell is in a stronger-than-ever position to partner with healthcare organizations across the full continuum of patient care delivery."

The merger, he said, helps Omnicell address the "costly, critical issue of non-adherence head-on, through medication packaging solutions and consumables that help patients and caregivers adhere to the prescribed medication regimen. We believe the new end-to-end Omnicell portfolio of innovations brings unmatched value to safe, effective medication management for healthcare organizations in both acute and non-acute care environments.”

“MTS brings to Omnicell 28 years of leadership in long-term care, a growing presence in international retail markets and deep expertise in the manufacturing of consumables to support these customers," he said. "Omnicell has unique expertise in capital equipment and software for medication and supply management in the acute care market. Together, we will advance Omnicell’s strategy to offer hospitals and non-acute healthcare providers alike the leading solutions to improve patient safety, clinical outcomes and healthcare delivery economics.”

MTS Medication Technologies will continue to operate under that brand, as a wholly-owned subsidiary of Omnicell.