GE and Intel on Monday announced an expansion of their partnership by forming a 50/50 joint venture to create a new healthcare company to exclusively develop products focused on telehealth and independent living. The new company will combine the assets of GE Healthcare's Home Health Division and Intel's Digital Health Group.
The venture builds upon a healthcare alliance announced in April 2009 by the two companies to work together to develop products targeted at the needs of senior citizens and individuals with chronic health conditions. Louis Burns, currently vice president and general manager of Intel's Digital Health Group, will be CEO of the as-yet-unnamed company, to be headquartered in Sacramento, CA. Omar Ishrak, CEO of GE Healthcare Systems (Chalfont St. Giles, U.K.), will serve as chairman of the board.
Once the new company is formed, ideally before the end of 2010, it will develop and market products, services, and technologies that promote health and independent living at home and in assisted-living communities around the world.
At an August 2 news conference, Burns and Ishrak noted that global market opportunities for new models of healthcare delivery are growing, and at least 1 billion people could currently benefit from having the products the joint venture will create. Intel and GE are well-positioned to sell these new products to a global marketplace.
"With the power of our two brands behind us, we can create a new company that customers will know and trust ... and be able to reach millions of users across the planet," Burns said.
Burns noted that Intel's research team spent time in more than 1,000 households in 20 countries to build in-depth knowledge of the needs of senior citizens and the challenges faced by clinicians and caregivers who care for them.
Current products being sold that provide remote patient monitoring and sensor-based monitoring, and utilize assisted technologies for users with dyslexia and poor vision, will continue to be sold and supported. Product branding may eventually change, but continuity of sales, service, and support will be maintained, Ishrak said.
The joint venture will launch with several hundred people, but no information about management structure was provided. Ishrak and Burns also declined to discuss any financial information, other than saying that both GE and Intel believe that this market segment represents an excellent investment with a huge opportunity.
"Creating this new company is the next natural step after more than a year of working successfully together in an alliance," Ishrak said.
By Cynthia E. Keen
AuntMinnie.com staff writer
August 2, 2010
Related Reading
GE, Intel to study home monitoring, February 24, 2010
GE, Intel expand pact to U.K., January 5, 2010
GE, Intel form $250 million HIT alliance, April 2, 2009
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