Medtronic, a Minneapolis medical device company, has acquired Cardiocom, a privately held developer of integrated telehealth and chronic disease management patient services, for $200 million, the company announced this week.

The acquisition is part of Medtronic’s effort to go from medical device product offerings to what it says is “broader healthcare services and solutions.”  Cardiocom allows providers to remotely monitor patients with chronic conditions such as heart disease, Mike Genau, senior vice president and president of Medtronic's U.S. Region, said in a statement.

Cardiocom’s service, an article in The Wall Street Journal notes, fits with the readmissions mandate, asking hospitals to cut down on the number of patients readmitted to a hospital after 30 days. Using telehealth to monitor patients remotely goes beyond the company’s usual offerings, which focus on cardiac rhythmic management devices the WSJ article notes.

"We look forward to joining Medtronic as part of a combined portfolio of products and solutions that can positively impact outcomes for patients and bring value to our customers," Daniel L. Cosentino, vice president and general manager of Cardiocom at Medtronic, and former CEO of Cardiocom, said in a statement.

The company impact from this transaction to be neutral to fiscal year 2014 earnings with long-term return-on-investment (ROI) in the future.