Healthcare services giant Cardinal Health has acquired Houston-based startup ScalaMed, whose platform transfers prescriptions directly to patients via a secure mobile app. The purchase price wasn’t disclosed.
ScalaMed now falls under the umbrella of a Cardinal-owned company called Outcomes. ScalaMed’s technology will be available throughout Cardinal’s nationwide pharmacy network.
“As healthcare continues to evolve toward patient preferences, the acquisition of ScalaMed allows us to center our connected ecosystem around the patient from the outset of their treatment journey — from the doctor’s office to the pharmacy to home,” Brent Stutz, senior vice president and general manager of Dublin, Ohio-based Outcomes, says in a news release. “Using ScalaMed’s technology, we can better support patients at every step along their treatment journey through unified communication and more informed insights that will help remove access and adherence barriers.”
Dr. Tal Rapke, founder and CEO of ScalaMed, says the process of digitizing prescriptions removes the patient from the equation, helping them bypass challenges such as forgetting medication while on vacation or lacking a convenient pharmacy nearby.
ScalaMed, founded in 2016 in Australia, raised $1.1 million in funding, according to Crunchbase. It was a member of the TMC Accelerator’s medtech program in 2018.
“With the scale and innovation Cardinal Health offers, we can revolutionize how prescriptions are filled and help solve the massive, costly challenge of medication nonadherence,” says Rapke, who’s a physician.
According to an article published in 2016 by the Journal of Managed Care & Specialty Pharmacy, medication nonadherence happens when a new medication is prescribed for a patient, but the patient does not obtain the medication or an appropriate alternative within an “acceptable” period after it was prescribed.
An article published in 2018 by The Permanente Journal reported that medication nonadherence happens with as many as 40 percent to 50 percent of patients who are prescribed drugs for chronic conditions like diabetes and high blood pressure. Each year, medication nonadherence costs the U.S. healthcare system $528 billion and contributes to about 275,000 avoidable patient deaths, according to a study published in 2018 in the Annals of Pharmacotherapy.
“Medication adherence … constitutes one of the ‘big hairy problems’ or ‘big hairy audacious goals’ of healthcare,” says an editorial published in 2020 by BMJ Journals.