GE Healthcare has created Sustainable Healthcare Solutions, backed by a $300 million investment, to develop healthcare technology for governments, clinicians, private operators and non-government operators.
GE said the move will help grow its $18 billion healthcare technology division by offering low cost technology solutions to emerging markets. It also comes just weeks after GE sold its previous healthcare finance unit to Capital One in a $9 billion deal.
Sustainable Healthcare Solutions will combine GE Healthcare's operations in India, South Asia, Africa and Southeast Asia.
The low-cost healthcare equipment sector is estimated to be worth over $8 billion and growing significantly as developing countries continue to invest in effective, long-term healthcare solutions to improve the health of their populations.
[Also: Capital One buys GE Capital's healthcare finance unit for $9 billion]
Sustainable Healthcare Solutions is stepping up efforts in that market, bringing high-value, low-cost technologies that offer affordable healthcare and value-based solutions, GE Healthcare said.
"Much of the world's population is without adequate healthcare, and innovations that can create better patient outcomes in a sustainable way are urgently needed," said John Flannery, president and CEO of GE Healthcare. "Many emerging economies are looking for experienced partners to help build skills, capacity and effective healthcare solutions for their patients."
GE Healthcare has a track record in developing innovations for emerging markets such as its handheld ultrasound device Vscan Access and Lullaby infant warmer that are used in remote rural settings for maternal infant care.
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Sustainable Healthcare Solutions covers 70 markets including India and South Asia, Africa and Southeast Asia, with a focus on increasing basic health access for 5.8 billion people around the world.
"SHS will leverage GE's Fastworks methodology to accelerate, test and rapidly commercialize relevant, affordable technologies. By taking this 'start-up' model approach we can rapidly test new ideas, products and services to maximize effectiveness for customers before we scale up," said Terri Bresenham, president and CEO of GE Healthcare's Sustainable Healthcare Solutions unit.
GE Healthcare provides medical imaging, software and IT, patient monitoring, diagnostics, drug discovery, biopharmaceutical manufacturing technologies and performance improvement solutions to medical professionals.
Twitter: @SusanMorseHFN