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Electronics giant LG on Monday launched a spinoff business in a bid to branch out and make money from healthcare software.
Primefocus Health is building out a health tech platform to connect digital health apps and remote monitoring devices in hopes of providing patients with a smoother transition and continued care after they’re discharged from the hospital, LG said.
The technology giant, which traditionally makes money from selling hardware that includes TVs for patients and medical monitor displays, plans to sell the platform to health systems in a bet to make money off of software. LG declined to elaborate on the specific features or technology partners.
Darren Sabo“We’re spinning out so we could really focus on the software and service development and do it in a way that’s faster and more nimble than we would be able to, to explore and develop inside LG,” Primefocus Health CEO Darren Sabo said. “We see the future as going towards software as a service, and that’s where the revenue growth really is.”
It’s not the first multinational corporation to dip into remote patient monitoring technology. In 2021, retail giant Best Buy spent almost $400 million to acquire Current Health, a remote patient monitoring technology company as it pushes deeper into healthcare.
“To my point of view, Best Buy is a retailer first and foremost,” Sabo said. “They’re really going to benefit from selling devices, and we’re trying to be more ambient with our technologies and limit the number of devices that need to be in the home.”