GE and Intel Corporation have announced they are forming a 50/50 joint venture to build a company geared to enhancing independent living through telehealth.
The company will develop and sell products, services, and technologies that promote healthy independent living at home and in assisted living communities for seniors and others with chronic conditions, and at the same time lower healthcare costs.
The partnership, to be based in Sacramento, CA, will focus on three major segments: chronic disease management, independent living concepts and assistive technologies, such as the Intel Health Guide, Intel Reader and GE Healthcare's QuietCare.
Specifically, the venture will combine the assets of GE Healthcare's Home Health division and Intel's Digital Health Group, and will be owned equally by GE and Intel. The companies did not disclose financial terms. Pending regulatory approvals, they intend to be operational by year's end.
The partnership builds on the GE-Intel healthcare alliance announced in April 2009 around independent living and chronic disease management. Intel entered the home health sector in late 2008 with the introduction of a series of trials of specialized hardware and software developed to help homebound patients with chronic medical problems.
"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.