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GE and the Use of Technology in Healthcare

Posted Sep 26 2008 5:17pm

by Ed Howe

Diagnosis for GE Healthcare. Newly appointed CEO says he knows what ails imaging industry.

“The X-ray tube manufacturing company General Electric, launched in Milwaukee in 1947, has expanded almost without interruption into a $17 billion-a-year medical equipment and biosciences company….”

So starts an interesting article in my local paper about John Dineen, newly-appointed CEO of GE Healthcare.

Dineen goes on to blame his company’s slow sales on Medicare reimbursement. From my point of view, the larger issue is how best to use diagnostic tools in an integrated delivery environment. By focusing on growing just one segment of healthcare, over-utilization and wasteful expenditures of healthcare dollars ensues.

One of the huge advantages that GPOs such as Premier can bring to the equipment market is to evaluate how best to use technology. How does it impact early detection? How does it impact outcomes, both clinically and economically?

I agree with Dineen when he says, “Cutting or limiting the use of technologies are not the right answers, there’s a better answer.” Now would be a good time for GE Healthcare to view GPOs like Premier as part of that answer, not a threat to sales growth.

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