Intel, GE in Health Care Technology Joint Venture
New company an outgrowth of alliance formed last year. Goal is to use technology to bring more effective health care to millions. Effort focused on new models of health care delivery for elderly and chronically ill.
Technology giant Intel Corp. and GE Healthcare Systems, a $16 billion unit of General Electric Co., said that they have expanded an alliance formed last year into an equally-owned formal venture whose charter is to create new models of health care delivery and accelerate the development of innovative technology for seniors and people with chronic conditions.
Financial terms of the deal were not disclosed. The parties said that pending regulatory approval and other closing conditions, the operation is expected to begin activities by the end of this year.
The development is important for health care solution providers because it offers yet another example of the vast opportunity present in the health care market and how readily it can be parsed into potentially lucrative segments as Intel and GE aim to do.
Louis Burns, Intel Digital Health Group vice president and general manager, will be chief executive of the new company, and Omar Ishrak, GE Healthcare Systems president and chief executive, will act as the ventures chairman. The new enterprise will be headquartered in the Sacramento, CA area.
The companies said in a statement that they have in common a vision to use technology to bring more effective healthcare into millions of homes and to improve the lives of seniors and people with chronic conditions.
Officials said that the new operation will jointly develop and market products, services and technologies focused on managing chronic diseases, independent living and assistive technologies.
The joint venture effectively positions us to accelerate the development of innovative technologies for independent living and chronic disease management through joint research and our combined expertise, said Ishrak on a web cast.
I feel strongly that this joint venture sets the stage for improving the quality of life for millions while simultaneously lowering health care costs, he said.
Ishrak said that the joint venture is the next natural step evolving from a health care alliance the two companies formed in April 2009.
Working with the intel team, weve already seen how combining our expertise, that is, GEs knowledge and understanding of the needs of health care providers and Intels capabilities in ethnographic research, has accelerated the adoption of new technologies for home health care, he said.
We believe this joint venture is good for investors, good for health care providers and great news for the millions of aging individuals and chronically ill who are looking for effective and affordable ways to take control of their health and live independently longer, he said.
Intel research backs effort for new products and services
Burns said that Intel has been gathering data about the health care market for some five years.
Our research team has spent time in over 1,000 households in 20 different countries building in-depth knowledge of our senior population and the challenges of the clinicians and care-givers who take care of them, he said.
Our intention is to accelerate our joint roadmap and further innovate to develop a broad portfolio of products and service offerings, Burns said.
Intel already sells the Intel Health Guide and Intel Reader, and GE Healthcare offers its QuietCare product, technology that address remote patient monitoring, independent living and assistive technologies.
Both companies said that the new entity will sell the existing products as well as develop new technology.
GE Healthcare, based in the U.K., develops technology and services such as medical imaging and information technologies, medical diagnostics, patient monitoring systems, drug discovery, biopharmaceutical manufacturing technologies, performance improvement and performance solutions services.
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