General Electric is selling off a section of its healthcare business to a private equity firm, Veritas, for just over $1 billion cash.
GE Healthcare is one of southeastern Wisconsin’s largest employers.
A GE Healthcare representative wanted to be clear, this sale is not going to have any negative impact on healthcare in the Milwaukee area. Instead, GE Healthcare said this allows the company to put more money in what it calls the “digital” side of its business.
The company is selling Enterprise Financial Management (a department that helps hospitals with billing), Ambulatory Care Management (handles electronic medical records) and Workforce Management (a division that helps health systems manage staff, for example, with scheduling).
A rep for GE Healthcare said they wanted to sell off certain assets, so they can enhance Artificial Intelligence (AI) and software for things like CT scans and X-rays. The technology, the company said, will allow doctors to serve patients even better.
Kieran Murphy, President & CEO of GE Healthcare, said, “We’re confident this business will flourish under Veritas Capital, while GE Healthcare will continue to significantly invest in core digital solutions, such as smart diagnostics, connected devices, AI and enterprise imaging, that will drive precision health for our customers. We will continue to lead in data analytics, command centers, advanced visualization and image management tools to create better customer and patient outcomes.”
Rich Kirchen, senior reporter with Milwaukee Business Journal, weighed in on the local impact.
“They have about six thousand employees in the area and most of them are working on other actual healthcare equipment, MRI systems, cat scanners, X-rays, monitoring equipment that’s all made in Milwaukee, Waukesha, Wauwatosa, West Milwaukee,” said Kirchen.
A spokesperson for GE Healthcare declined an on-camera interview but said no one will lose their jobs because of this sale. But globally, 1300 people will now report to Veritas and not GE healthcare.
It’s still unclear how many local employees with GE Healthcare will be impacted by the sale.
“One billion dollars for an international company like General Electric is more than a drop in the bucket, it’s real money, but it’s not like a smaller company.”
“This is a relatively small transaction,” said Kirchen.
Read the news release in its entirety HERE.