General Electric Company said it plans to spend $6 billion over the next six years on healthcare innovation that will help deliver better care to more people at lower cost.

Under the 'healthymagination' initiative, GE will invest $3 billion for 100 innovations that lower cost, increase access and improve quality; $2 billion to finance IT and access in rural areas and $1 billion for partnerships, content and services, said a company official.

Built on the successful GE ecomagination model, the company will work on global commitments of reducing costs, improving quality and expanding access for millions of people.

In addition, the company will commit $2 billion of financing and $1 billion in related GE technology and content to drive healthcare information technology and health in rural and underserved areas, said Jeff Immelt, GE chairman and CEO.

GE will also apply its expertise in services and its suite of performance improvement tools for impact in these areas. These actions will strengthen GE Healthcare’s business model.

It will work with partners to focus innovations on four critical needs to start - accelerating healthcare information technology; target high-tech products to more affordable price points; broaden access to the underserved; and support consumer-driven health, he noted.

Under the  'healthymagination, GE will expand its employee health efforts by creating new wellness and healthy worksite programs while keeping cost increases below the rate of inflation besides increasing the “value gap” between its health spend and GE Healthcare earnings to drive new value for GE shareholders, Immelt noted.

GE will engage experts and leaders on policy and programs and create a GE Health Advisory Board, which will include former US senators Bill Frist and Tom Daschle and other global healthcare leaders.

Healthymagination will draw on capabilities from across GE, including GE Healthcare, GE Capital, GE Water, NBC Universal, the GE Global Research Center as well as the GE Foundation, the philanthropic arm of GE.

“Healthcare industry is an important industry that is challenged by rising costs, inequality of access and persistent quality issues,” Immelt said.

'Healthcare needs new solutions. We must combine technology with innovations and smarter processes that help doctors and hospitals deliver better healthcare to more people at a lower cost.'

“Healthymagination is our business strategy that seeks to help people live healthier lives, support customer success and help GE grow,” Immelt observed.

'We will invest in innovations that measurably improve cost, access and quality. That means lower-cost technology for more customers, products matched to specific local needs and process expertise to help customers win,' he added.

“This reflects the new opportunities we see in healthcare,” Immelt pointed out.

'Our newest innovations – low-cost digital x-ray machines, portable ultrasounds, more affordable cardiac equipment – will save costs for doctors, hospitals, the government, families and businesses.'

'This will help level the playing field in health care. With our technology, rural and urban areas and developing countries can have access to the best technology, affordably.'

“We saw the same type of tipping point four years ago when we launched our successful environmental initiative, ecomagination,” Immelt remarked.

“We learned that technical innovation can drive solutions and value for customers, investors, employees and the public. We will bring the same integrated approach to healthcare, focusing all of our expertise, labor and imagination on its success,” he added.

GE Healthcare president and CEO John Dineen said this was the right time to reposition its healthcare business, given the changes and challenges in the industry.

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