In strategy shift, GE plans lower-cost health products

General Electric is shifting the strategy in its $17 billion-a-year health equipment and technology business, seeking to broaden its reach with more lower-cost products. As part of the new health strategy, GE said it would invest $3 billion to develop at least 100 product and services innovations by 2015. The criteria for the new products will be that they lower cost, increase access, and improve quality by 15%. GE's health business, known for its medical imaging and diagnostic machines, is struggling in a weak economy as the hospitals and clinics that buy such sophisticated and costly equipment are reducing capital spending in the downturn.