GE Healthcare division has three businesses; revenue cycle management, ambulatory care management and workforce management. GE Healthcare sold this division to private-equity firm Veritas Capital for $1.05 billion in cash as it aims to streamline its operations. Both companies are set to team up to have a smooth transitioning of the businesses into a standalone company.
This is a strategic move by GE Healthcare as Veritas Capital primarily focuses on healthcare technology. The brand has a reputation of strategically developing businesses in this space and taking them to the next level. Recently, it has also invested in Truven Health Analytics and Verscend Technologies.
Jon Zimmerman, Vice President and General Manager of value-based care solutions of GE Healthcare believes that his team has considerable expertise in the healthcare division. When they operate as a stand-alone business under Veritas, they will have the opportunity to alleviate its product portfolio and work towards more complementary acquisitions. He also remarked that this decision will take the business to the next level in terms of scale and performance.
Ramzi Musallam, CEO and managing partner of Veritas Capital mentioned, since there is a growing trend towards digitizing healthcare system there is an enormous opportunity to invest in this business and benefit from the $9 billion market.
Kieran Murphy, President and CEO of GE Healthcare expects the business to flourish with this deal and GE Healthcare will continue to invest in its core digital solutions like AI, enterprise imaging, smart diagnostics and connected devices.