The deal, which will span 14 years, will put MRI and CT scanners in the Heritage Valley Beaver and Heritage Valley Sewickley hospitals as well as new ultrasound equipment for Heritage Valley’s hospital and medical neighborhood locations.
“By working with GE Healthcare as a strategic partner and initiating this long-term agreement, we are also able to mitigate the risk of technology obsolescence through routinely scheduled upgrades. This enables Heritage Valley to continually enhance our entire suite of imaging equipment, bringing the best technology available into our hospitals and community satellites,” Heritage Valley Health Systems COO Dr. John Luellen said in a prepared statement.
Heritage Valley said that it will receive upgrades to existing GE CT scanners and nuclear imaging cameras as part of the deal.
“Through strategic models, such as MES structures, health systems like Heritage Valley prepare for the future with advanced imaging technologies and servicesAs part of its agreement with GE Healthcare, Heritage Valley will move from a model of fluctuating capital expenditures to one that is more predictable and consistent over the 14-year commitment,” GE Healthcare U.S. and Canada prez Lee Cooper said in a press release.
In March, GE Healthcare CEO John Flannery said the company is looking to reverse a slump in operating margins with a 2% increase this year.
The goal is 18% by the end of 2018, Flannery said during a GE Healthcare investor presentation March 11. The imaging and healthcare IT business expects to post operating margins of 16.7% this year, up from 16.3% last year.
Flannery said the gains will come from by tripling GE Healthcare’s cost-cutting measures, new products and an increased contribution from digital services revenue. The division isn’t planning to sell of any businesses as part of the margin push, he said.