FEATURE: GE pumps $6B into new healthcare initiatives
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| John Dineen, president and CEO of GE Healthcare. Image Source: GE Healthcare |
Of the $6 billion, $3 billion will be invested over the next six years in approximately 100 solutions designed to lower cost, increase access and improve quality; $2 billion will finance IT and access in rural and underserved areas; and $1 billion will focus on partnerships, content and services.
In an interview, John Dineen, president and CEO of GE Healthcare, said that the allocation of funds has yet to be determined, adding that there "isn't a pre-determined split between imaging or IT." He also said in each case will be assessed according to "quality, cost and access," adding that "next great technology might not necessarily get funding."
However, in the fund allocation process, he said that health IT "is going to have a real advantage in the process, because we believe it shows a demonstrable ability in those three areas of consideration." Dineen also said that certain conditions are also on GE's radar, such as cardiology and oncology.
During the teleconference, Immelt said that the company sees its "two pillars of growth" as energy and healthcare. "Healthcare is in a really interesting time, and at a tipping point in the U.S., leading to dedicated conversations throughout the country and in Congress. In the government, there is a push toward transparency and quality measures. The time to step up is now," he said.
Of note, Immelt said several times during the conference that GE would have made "this move with or without the stimulus package." Dineen suggested that better strategies are needed for providers to address the variances that currently exist in healthcare as "a fundamental driver of costs. For health IT, specifically, clinical decision making will be integral to the process."
In an interview, Vishal Wanchoo, president and CEO of GE Healthcare IT, said that "health IT processes need to be improved." He said that GE has a "heavy focus on interoperability, so these IT systems can exchange information, which will be integral part of achieving meaningful use."
Immelt said that like the company's ecomagination model, the healthcare division is adopting a simultaneous distribution model, and moving away from a sequential model. "We must innovate with smarter processes and technologies that help doctors and hospitals deliver better healthcare to more people at a lower cost," he said.
Immelt suggested that early detection and prevention of disease is a primary mission for the company, exemplifying its focus on neurological imaging, specifically for the condition of Alzheimer's, and digital pathology.
Health IT initiatives
As part of its effort to seek to "make health IT faster and more productive" by increasing the use and capability of EMR and other health IT technologies, the company also launched two health IT initiatives today:
- GE, Intermountain Healthcare and the Mayo Clinic have developed physician decision support through IT in the form of evidence-based care. it will be launched commercially in 2010.
- GE Capital will provide $2 billion in financing to help health providers in rural and underserved areas get access to more solutions that improve health and reduce the cost of care. GE will focus financing to assist in the adoption of EMRs and health information exchanges (HIEs) before the federal financial incentives become available.
In seeking to cut healthcare costs, Dineen exemplified that GE was going to focus on three areas:
- Products technologies: Such as its line of ultrasound products, which are producing "higher magnitude of studies at greater quality at lower costs;"
- Services: "To assist customers better manage and track their assets, through such solutions as AgileTrac," he said.
- Health IT systems: through such technologies as its Centricity EMR.
GE also is engaging experts and leaders on policy and programs to create a GE Health Advisory Board, which will include former U.S. Senators Bill Frist and Tom Daschle, as well as Andrew von Escenbach, MD, former commissioner of the FDA.
Targeting consumer, employee health
To increase its focus on consumer-driven healthcare, Immelt mentioned the recent GE partnership with Intel to provide products to remotely monitor the health of seniors and those with chronic conditions. Now, through GE's media network, the company said it also will focus on healthcare broadcasting, namely:
- NBC Universal and NBC News will make a commitment to bring health and wellness content to consumers in the form of more than 5,000 televised reports annually on health and wellness and companion online tools.
- MSNBC will launch a new, daily program dedicated solely to health information, beginning in June. The program will be anchored by NBC News Chief Medical Editor Nancy Snyderman, MD, who will tackle everything from health and wellness tips and medical breakthroughs to examining health policy.
- The Cleveland Clinic will join with GE and NBC to conduct research that seeks to better understand important factors that move consumers from being aware of a health condition via the media to actually changing their behaviors.
Also, Immelt said he has tasked GE Vice Chairman John Rice to create a culture of health to help improve the health of GE's employees and retirees and to contain costs. GE will partner with governments and other companies to build a "healthy work site" certification program. Immelt said GE will turn its 175 health centers into wellness clinics and increase the use of employee incentives and decision support for health and prevention, providing personal health records to employees to identify health risks and track behaviors.