The Hinge Health acquisition marks a strategic move into gastrointestinal care, a rapidly growing segment in digital healthcare. Hinge Health has announced a definitive agreement to acquire Cylinder Health for $105 million in cash. As a result, the company plans to expand its care offerings beyond musculoskeletal and migraine programs.
The company’s acquisition is notable for addressing shortcomings in the accessibility of digestive healthcare. It is estimated that almost a quarter of all adult Americans suffer from GI issues. Nonetheless, access to specialists is quite difficult in many areas. Moreover, fragmented treatment results in repeat visits without success.
“We’re entering GI care because of member and client demand,” said Daniel Perez, Co-Founder and CEO of Hinge Health. “Many people we already serve for back, joint, pelvic, and migraine care also have chronic digestive conditions. After spending time with Terry Boch and the Cylinder team, it’s clear that Cylinder gives us a running start in a category with significant unmet need.”
Expanding Digital Healthcare Through Integrated GI Care
In addition, the business is planning to launch a Gastrointestinal Care Program, which would be an integrated model by 2027. This program would incorporate the clinical prowess of Cylinder Health along with the technological power of Hinge Health AI Platform.
This acquisition gives the company an upper hand in the digital healthcare industry. This is because the company already serves almost two million people through more than 100 customers. In addition, it has collaborations with some of the best pharmacy benefit managers and health plans in the industry. The company has also managed to offer care to over 150,000 patients with demonstrated returns on investment. Therefore, this acquisition will help improve the quality of the service offered and the lives of the patients. Furthermore, there is increasing demand for technology-driven healthcare services. Experts in the industry regard GI care as an ideal complement to the current offering.
“GI care is a growing need across our member population,” said Jessica Palacios, Associate Director, System Benefits Administration at The Texas A&M University System. “Our members engage with Hinge Health across multiple condition areas, so adding GI care within that same experience is a natural extension of a partnership that is already working and that our members trust.”
“GI conditions are highly comorbid with the conditions Hinge Health treats, sharing gut-brain and central-sensitization mechanisms,” said Hau Liu, MD, Chief Medical Officer of Cylinder Health. “This makes GI a strong fit for Hinge Health’s technology-driven care model, and we look forward to delivering unified care to our combined members.”
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News Source: Businesswire.com
