GE, Intel Say Home Care is Where It’s At

SANTA CLARA, Calif. and FAIRFIELD, Conn. — GE and Intel
said last week they will form a 50-50 joint venture to create a new
health care company focused on telehealth and independent
living.

The new entity will combine assets from GE Healthcare’s Home
Health division and Intel’s Digital Health Group, which rolled out
its first medical
device — the Intel Health Guide — a care management
tool for patients with chronic conditions — in 2008. Terms of
the deal were not disclosed.

With the dramatic increase of people living with chronic
conditions and global aging populations, the companies said they
“share a common vision to use technology to bring more effective
health care into millions of homes and to improve the lives of
seniors and people with chronic conditions.”

The new company will focus on three major segments: chronic
disease management, independent living and assistive
technologies.

“New models of care delivery are required to address some of the
largest issues facing society today, including our aging
population, increasing health care 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.”

The new company will be headquartered in Sacramento, Calif.
Louis Burns, currently vice president and general manager of
Intel’s Digital Health Group, will be CEO, and Omar Ishrak, senior
vice president of GE and president and CEO, GE Healthcare Systems,
will be chairman of the board.