What happens when GE wants to bring good things to life (and keep them alive) and when Intel wants to be inside the home? A joint venture. GE (NYSE: GE) and Intel Corporation announced Monday that they are creating a new healthcare company focused on telehealth and independent living. The announcement builds on the GE-Intel healthcare alliance announced in April 2009 and the company will be structured as a 50/50 joint venture. GE Healthcare and Intel will contribute assets in remote patient monitoring, independent living concepts and assistive technologies, such as the Intel® Health Guide, Intel® Reader and GE Healthcare’s QuietCare®.
The new entity will be headquartered in the Sacramento, California area and Louis Burns, currently vice president and general manager of Intel’s Digital Health Group, will be CEO of the new company, and Omar Ishrak, senior vice president of GE and president and CEO, GE Healthcare Systems, will be chairman of the board. Financial terms of the joint venture were not disclosed.
“New models of care delivery are required to address some of the largest issues facing society today, including our aging population, increasing healthcare costs and a large number of people living with chronic conditions,” said Intel President and CEO Paul Otellini. “We must rethink models of care that go beyond hospital and clinic visits, to home and community-based care models that allow for prevention, early detection, behavior change and social support. The creation of this new company is aimed at accelerating just that.”
GE Chairman of the Board and CEO Jeff Immelt said “Controlling healthcare costs while bringing quality care to an increasingly aging population is one of the largest global challenges we face today. We think this joint venture will offer great potential to address these challenges by improving the quality of life for millions while lowering healthcare costs through new technology. This new company is the next step forward in a healthcare partnership that combines the complementary expertise and capabilities of GE and Intel to accelerate the development of innovative home health technology.”