Nearly half of 3M, M*Modal customers feel positive toward $1B acquisition

More than 40 percent of hospitals and other healthcare providers believe 3M’s $1 billion acquisition of M*Modal will have an overall positive impact in the market, according to a survey by Reaction Data.

In December, Minnesota-based multinational conglomerate 3M acquired speech recognition software developer M*Modal for $1 billion. M*Modal provides healthcare technology and conversational AI-powered systems for transcribing doctors’ verbal notes.

The survey featured responses from 180 health information management (HIM), imaging and clinical professionals on how they believe the acquisition deal with impact the healthcare market and customers. Of the respondents, 30 percent were M*Modal customers, while 24 percent were 3M customers. Twenty-seven percent were customers of both companies.

Just 12 percent of organizations said the deal will have an overall negative impact on the market, while 43 percent said it will have a positive impact. Forty-five percent were undecided. According to Reaction Data, 43 percent is “well above” the average based on recent studies.

Fifty percent of organizations believe the deal will positively impact customer retention, while just 9 percent believe it will cause customers to leave. Forty-one percent were undecided.

Additionally, the survey revealed that 55 percent of organizations weren’t aware of the acquisition deal, while 45 percent were aware.