"New models of care delivery are required to address some of the largest issues facing society today, including our aging population, increasing healthcare 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 telemedicine device and services market is expected to reach $3.6 billion in annual revenue by 2014, according to a report from research firm Pike & Fischer.
Louis Burns, currently vice president and general manager of Intel's Digital Health Group, will be CEO of the new company, and Omar Ishrak, senior vice president of GE and president and CEO, GE Healthcare Systems, will be chairman of the board.