GE plans to invest $6B to lower health care costs

May 07, 2009 By STEPHEN MANNING , AP Business Writer

(AP) -- General Electric Co. said Thursday that it will invest $6 billion over the next six years in an attempt to lower the cost of health care and improve the quality of medical care in underserved regions of the United States and abroad.

The broad program sets goals of reducing by 15 percent through $3 billion of spending on new, lower cost medical technology. The initiative also plans to broaden the use of tools such as and other medical information technology, with the hope of providing more advanced care to 100 million additional people each year.

That will include $2 billion of financing for rural health care systems in the United States to adopt medical IT systems. It will also expand clinics in Cambodia and provide additional funding for maternal health care programs in Bangladesh.

"Health care needs new solutions," said GE CEO Jeffrey Immelt. "We must combine technology with innovations and smarter processes that help doctors and hospitals deliver better health care to more people at a lower cost."

The company, which has struggled over the past year due to the recession and problems at its GE Capital financing arm, has said that health care and energy are two likely growth areas over the next several years.

GE plans to use its NBC television networks as a way to increase consumer knowledge about health, and will launch a daily program devoted to health in June on MSNBC.

The Fairfield, Conn.-based GE is one of the world's largest industrial companies, making products like jet engines, household appliances and light bulbs. It also has a large health care division, which produces diagnostic equipment for hospitals and medical information technology systems.

GE has dubbed the program "healthymagination," saying it is on par with its "ecomagination" initiative that focuses on cleaner energy projects like and more efficient electric grids.

As part of "healthymagination," GE plans to appoint a advisory board that includes former Sens. Tom Daschle and Bill Frist.

©2009 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Explore further: Errata frequently seen in medical literature

add to favorites email to friend print save as pdf

Related Stories

New federal health care standards set

Aug 07, 2006

The Bush administration is putting the final touches on a plan designed to increase the quality of medical care and stem the rate of inflation for health care.

Groups find common ground on health care overhaul

Mar 27, 2009

(AP) -- Eighteen groups representing consumers, business, insurers, doctors and hospitals say they have reached agreement on how they would like to see the nation's health care system overhauled.

9 patients made nearly 2,700 ER visits in Texas

Apr 01, 2009

(AP) -- Just nine people accounted for nearly 2,700 of the emergency room visits in the Austin area during the past six years at a cost of $3 million to taxpayers and others, according to a report. The patients went to hospital ...

Team treatment for depression cuts medical costs

Feb 07, 2008

A team approach to treating depression in older adults, already shown to improve health, can also cut total health-care costs, according to a new study led by the University of Washington. The study appears in the February ...

Recommended for you

Errata frequently seen in medical literature

9 hours ago

(HealthDay)—Errata, including those that may materially change the interpretation of data, are frequent in medical publications, according to a study published in the August issue of The American Journal of ...

Seven US-based researchers share $1.3M eyesight prize

Sep 10, 2014

Seven U.S.-based researchers are sharing a €1 million ($1.3 million) prize from a Portuguese foundation for their work developing treatment for angiogenic diseases of the retina, the leading cause of blindness in the developed ...

User comments : 0