Building on a 2009 partnership, Intel and GE announce plans for a new company to be formed by combining assets of Intel's Digital Health Group and GE Healthcare's Home Health division.
By Suzanne Deffree, Managing editor, news -- EDN, August 3, 2010
Intel Corp and General Electric Co plan to form a 50/50 joint venture to create a new healthcare company focused on telehealth and independent living.
The new company will be formed by combining assets of Intel's Digital Health Group and GE Healthcare's Home Health division. The joint venture is expected to become operational by the end of the year. Financial terms were not disclosed.
The venture builds on the GE-Intel healthcare alliance announced in April 2009 around independent living and chronic disease management. At that time, the two companies said they would invest $250 million over the next five years to jointly market and develop home-based health technologies that will allow doctors to monitor patients remotely.
Once formed, the new company will develop and market products, services, and technologies that promote healthy, independent living at home and in assisted-living communities, the two companies said. Specifically, the company will focus on chronic disease management, independent living, and assistive technologies. Intel and GE Healthcare 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.
"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 in a statement. "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."
The new company will have headquarters in the greater Sacramento, Calif, area. 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.
Intel and GE made note of plans to "combine an experienced team" from the two companies for the venture, but did not detail headcount.
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