GE (GE) announced a push to increase R&D in its medical division, bring down prices for many of the technologies it creates, and provide financing to the doctors and hospitals who use the GE products.
Based on the burden that healthcare in creating for economies, particularly in the US, the projects are well-timed.
GE is putting the new projects under the rubric “healthymagination”, a term that cannot be pronounced or spelled by even the most educated people, but that is the only mistake the company is making as it plans to put $6 billion into expanding its presence in healthcare IT over the next seven years.
GE says it will introduce 100 innovations “that lower cost, increase access and improve quality by 15 percent.”
GE is developing a habit of capitalizing on the movement of tidal waves that are motivating global business and financial decisions. Its decision to put substantial effort into environmentally friendly business practices and products have gained the company goodwill, and presumably, new revenue.
With each health dollar becoming more dear in a slumping economy and due to an aging population, GE has picked the right spot again.
Douglas A. McIntyre
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