GE Healthcare and Temple University Health System have announced a seven year collaboration with the goal of providing higher-quality diagnostic imaging services more efficiently at a lower cost. When all is said and done they hope to save $39 million in operational costs.

“People want to say, ‘what do you want — do you want innovation or low cost?’,” said Jeff Immelt, GE Healthcare's chairman and CEO, in a press conference. “We’re trying to prove that you can have both.”

As part of the collaboration, GE will modernize Temple’s imaging equipment with its technology, enhance data storage and optimize scheduling and workflow efficiency. They refer to it as a “new chapter in value-based health care contracting”.

Their goal is to create a health system in which imaging equipment is at every location and is optimized for the types of patients that are being seen. They want patients to be able to access imaging tests whether they are outpatient or inpatient and have it so the information flows between the departments.

They also want to make it so referring clinicians can view imaging results across the whole health system in a single record, as soon as the exam is complete.

The health care industry has been undergoing immense amounts of change ever since the introduction of the ACA and various policy changes.

“It is obvious to us that health systems across the U.S. are experiencing increasing pressure to enhance value, and deliver higher-quality care at lower costs, as they continue to face challenges related to outcomes, cost control, market competition and other dynamics,” Larry Kaiser, CEO of Temple, said in a press conference.

The “triple aim” in health care is to provide better care and better health at a lower cost, which is a challenge that both the technology industry and providers share. “We’re all in this game together,” Immelt said in a press conference.

This is not the first time an equipment manufacturer has partnered with a health system in the U.S. In July 2013, Philips Healthcare announced a 15-year, $300 million collaboration with Georgia Regents Medical Center. In April, they announced that after two years, they were able to save about $7 million.

Philips also entered into a $500 million partnership with Westchester Medical Center in June. Philips is providing clinical and business consulting services and medical technologies for the entire health system.

Back to HCB News

Business Affairs Homepage