My report on the IAMERS European Meeting
by
Philip F. Jacobus, CEO | September 21, 2016
I do not see this as bad news for alternative providers because I believe that alternative providers fill a niche as I discussed above with my National Guard analogy above.
Anyway, the room was electric and no one in the room could take their eyes off Joe.
Joe started out talking about megatrends that are shaping the future. He talked about provider consolidation and how more and more hospitals are becoming part of bigger and bigger networks.
He talked about changes in the regulatory environment.
He pointed out that in 2005, 63 countries had health care related regulations but in 2016, 116 countries have health care regulations.
Joe suggested that GE and everyone in the room should support regulations because they protect patients. I agree with him. Even Africa is changing with nine countries now with regulations.
Joe reckoned that by 2020, there will be fewer and fewer IDNs which are larger and larger and all of these IDNs or big groups will have a single point of contact for purchasing.
I believe people were listening so carefully that the subtlety of the point Joe was trying to make may have been missed; specifically that the world is changing and the market is changing and alternative service providers better change with it or they are not going to remain in business.
Joe went on to explain that GE, as a company, plans to be more data driven and software-centric (I am paraphrasing here. These are not Joe's words). Apparently, GE's Chairman has committed something like $15 billion between now and 2020 to make the company and its products more digital.
The goal is to use connectivity to predict equipment failures before they occur and like everything else, rely more on software and software patches and fixes and improvements (again, I am paraphrasing) to predict failure and offer healthcare providers added efficiency.
In the end, GE believes this will result in better patient outcomes and it was clear that Joe believes this as well.
Of course, Joe knew that everybody was waiting for him to discuss the software regulation and Joe pointed out that the stance of GE has not changed. Their proprietary software is licensed and while the company has in the past not enforced that license, GE intends to assert its licensing in the future.
Joe has a great way of delivering information in a non confrontational yet persuasive way. Most people, I think, could read the handwriting on the wall but a few people asked some questions.
Jeff Fall pointed out that previously accounting firms including GE Capital may have depreciated the software licenses and he compared diagnostic imaging equipment to cars. Joe responded as pointing out that when you buy the car, you get the navigation disc but you have to pay extra for satellite radio.
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About Phil Jacobus
Phil Jacobus has been involved in health care since 1977, when he visited China to sell equipment. He has done business in 35 countries and still travels extensively. Phil is active in charity, helps rural clinics and always tries to help DOTmed users when he can.
Phil is a member of AHRA, HFMA, AAMI and the Cryogenic Society of America. He has contributed to a number of magazines and journals and has addressed trade groups.
Phil's proudest achievement is that he has been happily married to his wife Barbara since 1989, who helped him found DOTmed in 1998.
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