Key Points
- Truven Health Analytics (THA), which became an independent company in 2012, dealt in data collection and analysis for the healthcare industry.
- THA was purchased by IBM in 2016, and now exists as part of the Watson Health Division of IBM.
- THA made profits by licensing their databases to large healthcare organizations, as well as providing resources to gather and interpret healthcare data.
Truven Health Analytics is a company which provides data collection and analysis for the healthcare industry. It began as a division of the Thompson Corporation but then became Truven in 2012. The name Truven is a combination of “trusted” and “proven.” As a company that specialises in healthcare data, Truven examines healthcare data to look at the most effective treatments and practices in an individual situation.This research can help medical facilities make informed decisions on operations and patient care.
In 2016, Truven Healthcare Analytics was purchased by IBM for $2.6 million. The Truven databases are now accessible through the Watson Health Division of IBM. Read on to explore the full history of Truven Healthcare Analytics, including how it was founded and how it has grown through the years.
Quick Facts
- Year Founded
- 2012
- Founders
- Veritas Capital
- Industry
- Healthcare data analysis
- Headquarter
- Ann Arbor, MI
- Key People
- Mike Boswood
- Notable Products
- Research databases, Truven Health Micromedex
- Website
- https://www.ibm.com/watson-health/about/truven-health-analytics
The History of Truven Health Analytics: What to Know
Truven Health Analytics (THA) was a company specializing in data collection and analysis for the healthcare industry. Their data collections included information to benefit many aspects of medical care such as hospital management, patient care, health insurance, and pharmaceutical research. The primary goals of the company were to use healthcare data to increase organizational efficiency and positive patient outcomes.
The organization began as the health division of the Thomson Corporation, an information company based in Connecticut. THA became an independent company after its purchase by Veritas Capital in 2012.
The company continued to offer healthcare analysis services until it was acquired by IBM in 2016. At that time, the technology company merged Truven’s healthcare data resource with its Watson Health division.
The Founding of Truven Health Analytics: How It Happened
The healthcare industry is a data-rich environment. Every medical study generates information that can benefit patients down the line. Although data analysis has been around for decades, improvements in computer processing power in the early 2000s made it financially viable to analyze large data sets, making unexpected connections across departments. This healthcare analysis aided medical facilities in balancing patient care and operating costs.
The health division of Thomson Corporation was at the forefront of this effort. While physicians may know this company best for reference works like its “Physician’s Desk Reference,” the company was also developing digital tools for diagnosis and treatment.
After a merger with Reuters in 2008, the new Thomson Reuters company began to focus on business information. It sold the healthcare division to Veritas Capital in 2012. In that year, THA emerged as an independent entity.
Truven Health Analytics Through the Years
2012-2016
In 2012, Truven ceased to be a branch of Thomson Reuters. As a solo company, it could focus all its attention on healthcare analysis and information products. Truven divided its efforts into two areas: data collection and analytic services.
Micromedex is one of the lasting products that came from data collection efforts. This resource is a collection of databases that provide comprehensive information about medical conditions and health management. Physicians and pharmacists can use this tool to avoid side effects and dangerous drug interactions.
The other branch of THA involved helping hospitals and other medical facilities benefit from the analysis of big data. A health facility might gain information about its own operations compared with industry norms. These insights led to higher efficiency and improved patient care.
2016 to the Present
In 2016, IBM purchased the data resources of Truven Health Analytics. Today, the information exists as part of the Watson Health Division of IBM.
The most important products from Truven Health Analytics
Truven Health Analytics databases are standard collections for the medical field. Healthcare data resources like DISEASEDEX, DRUGDEX, and DRUG-REAX give doctors searchable tools for diagnosis and treatment options. Most of these databases are now gathered together in the Micromedex product.
How Did Truven Health Analytics Make Money?
Truven Health Analytics made money in two ways. First, they licensed their databases to large healthcare organizations. The second income stream was service-oriented. The company provided resources to gather and interpret healthcare data. Medical facilities used their services to improve patient care and operational performance. Health insurance companies worked with them to carry out predictive analyses.
Truven Health Analytics Acquisitions
Veritas Capital
In 2012, Veritas Capital purchased the Thomson Reuters health division to form Truven Health Analytics. The cost of this deal was $1.25 billion.
IBM
IBM purchased Truven Health Analytics for $2.6 billion in 2016. At this point, Truven ceased to exist and became part of the Watson Health Division.
