The corporate powerhouses GE
and Microsoft announced that they will launch a 50-50 joint venture in early
2012 that leverages the platform experience of Microsoft and GE’s core
healthcare competencies in clinical applications, with the goal of providing
real time data to improve patient experience and clinical outcomes.
The as-yet-unnamed company, to
be based near Microsoft’s corporate campus, will position itself as a solution
for providers and payers alike as the healthcare industry transforms from a
fee-for-service model with a focus on individual patient health to one that
operates with new payment models and focuses on population health management.
Further, while the two
companies intend to leverage their existing business lines for healthcare in
the new venture, it will develop and market an open, interoperable technology
platform.
“The joint venture’s
foundational offering of an open technological platform will…enable application
developers to build customized, differentiated solutions that interact to meet
customers’ specific needs,” noted Nate McLemore, general manager, Microsoft
Health Solutions Group in a blog post announcing the joint venture. “By
enabling independent software vendors, system integrators and healthcare IT
pros to develop on a common platform, the joint venture aims to support a
robust ecosystem of partners that offers customers real choice.”
The two parent companies will
contribute intellectual property, including:
- Microsoft Amalga, an enterprise health intelligence platform
- Microsoft Vergence, a single sign-on and context management solution
- Microsoft expreSSO, an enterprise single sign-on solution
- GE Healthcare eHealth, a Health Information Exchange
- GE Healthcare Qualibria, a clinical knowledge application environment being developed in cooperation with Intermountain Healthcare and Mayo Clinic
According to the two
companies, the long-term vision of the venture is to create new value by
offering a healthcare performance management suite that includes many of these
products.
“The complementary nature of
GE Healthcare’s and Microsoft’s individual expertise will drive new insights,
solutions and efficiencies to further advance the two companies’ shared vision
of a connected, patient-centric healthcare system,” said Jeffrey R. Immelt,
chairman and CEO of GE, in a press release. “The global healthcare challenges
of access, cost and quality of care delivery are creating a new focus on the
performance and accountability of healthcare delivery systems – in every
country, at every level of care. This venture will demonstrate what is possible
when leading companies with complementary capabilities work together to meet a
common goal.”
One goal is to help providers
deliver on the so-called “triple aim” of healthcare, where providers can
improve the patient experience, improve clinical outcomes while also lowering
the cost of care.
“High-quality, affordable
healthcare is one of the biggest challenges facing every nation, but it’s also
an area where technology can make a huge difference,” added Steve Ballmer, CEO
of Microsoft, in a statement announcing the deal. “Combining Microsoft’s open,
interoperable health platforms and software expertise with GE’s experience and
healthcare solutions will create exciting opportunities for patients and
healthcare providers alike. Working together, GE and Microsoft can help make
healthcare systems more intelligent and cost efficient while improving patient
care.”
The new company is not
intended to be a catch-all for the existing healthcare products and services
offered by the two companies. Both will continue to separately market their
healthcare offerings. For instance, Microsoft’s cloud-based service, Microsoft
HealthVault will remain at the company, as it looks to work with other
independent software vendors to provide a robust range of services to the
industry.
But according to reports
published in the New York Times and The Seattle Times, virtually
all other Microsoft workers in the company’s Health Solutions Group not working
on HealthVault will move over to the new company, which is expected to start-up
with as many as 750 employees.
Michael J. Simpson, vice
president and general manager at GE Healthcare IT, will serve as the company’s
CEO and not Peter Neupert, the Microsoft veteran who built that company’s
healthcare division. According to Microsoft, Neupert will retire at the end of
January, then work with the company in a consulting role.
In addition to the corporate
home office, the company will have a significant presence in Salt Lake City as
well as additional offices around the world.
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