
When Mike McSherry got down to construct a digital well being startup, the veteran entrepreneur wished to create an organization that might change into ubiquitous in healthcare.
Xealth didn’t fairly attain that formidable purpose. However its digital well being software program platform did acquire traction — and drew the eye of a worldwide tech large.
Samsung completed its acquisition of Xealth on Friday. The deal, reported by Modern Healthcare at about $115 million, alerts Samsung’s deeper push into digital health because it competes towards Apple, Amazon, Google, and others.
It’s additionally a significant milestone for Xealth, which helps healthcare suppliers prescribe and handle digital well being instruments. The corporate has 55 staff and plans to continue to grow in Seattle beneath the identical Xealth model.
Samsung desires to triple the workforce’s headcount, stated McSherry, who beforehand co-founded Swype, the predictive-text keyboard acquired by Nuance for $100 million in 2011.
Xealth spun out of Windfall Well being & Companies in 2017. The corporate’s software program lets clinicians prescribe and monitor digital therapeutics, gadgets, and well being apps straight by way of digital medical-record methods. Since launching eight years in the past, Xealth expanded to providers like transportation and meal supply.
McSherry stated adaptability — and deep relationships with 15 hospital methods and strategic traders together with Novartis, Philips, ResMed, and Samsung — helped the corporate acquire credibility and traction in an trade notoriously gradual to undertake expertise.
McSherry stated U.S. healthcare stays caught in economics the place hospitals are reimbursed for therapy, not prevention.
He pointed to the shortage of reimbursement for digital psychological well being apps regardless of widespread employer adoption.
That financial misalignment can gradual the adoption of digital instruments in healthcare, whilst AI and linked gadgets make it simpler to observe well being outdoors the clinic.
“What is perhaps good for a affected person is just not essentially good for the hospital funds or the insurance coverage firm funds,” McSherry stated. “And what is perhaps good for the hospital system could be detrimental to the affected person or the insurance coverage firm.”

McSherry is bullish about teaming up with Samsung. The corporate has a whole lot of thousands and thousands of smartphone customers and is increasing its line of smartwatches, well being rings, and linked home equipment.
“In the end, that’s going to be a health care provider in your pocket, or a health care provider in your wrist or ring,” he stated. These gadgets — together with advances in AI — will assist intervene and notify shoppers that they need to schedule a health care provider’s appointment or take a sure motion, McSherry stated.
Samsung can be a top-selling house equipment model. McSherry sees a chance to embed well being into the house setting itself — from detecting falls to selling wholesome routines.
Samsung has been looking for FDA approvals for well being monitoring options corresponding to AFib and sleep-apnea detection.
McSherry, who will stay CEO at Xealth, stated his workforce will assist construct out Samsung’s well being app retailer, curating digital-health options for shoppers.
For startup founders in digital well being, McSherry suggested to know who their actual purchaser is — and what motivates them.
“Who’s shopping for your answer? What are their financial incentives and motivations for getting that? And what are the repercussions to the opposite gamers that sit alongside them that will or might not play a job in reimbursement methods or deployment methods,” he stated.
McSherry co-founded Xealth with Aaron Sheedy, his former colleague at Swype, which additionally raised funding from Samsung. Xealth raised north of $50 million.
“With the addition of Samsung, hopefully with their model and their advertising and marketing and their prowess and distribution and belongings, we will really create a worldwide platform — which was in the end the purpose at Xealth,” he stated.