GE and Intel invest $250 million in new market opportunity;Companies to market and develop innovative technologies for independent living and chronic disease management
FAIRFIELD, Conn. and SANTA CLARA, Calif. April 2, 2009 -- GE (NYSE:GE) and Intel Corporation (NASDAQ: INTC) announced today an alliance to market and develop home-based health technologies that will help seniors live independently and patients with chronic conditions manage their care from the comfort of their home or wherever they choose.
GE Healthcare will sell and market the Intel Health Guide, a care management tool designed for health care professionals who manage patients with chronic conditions. With the dramatic increase of people with chronic conditions and an aging population there is a need to extend care from the hospital to the home. GE Healthcare and Intel are helping to address these pressing issues. The market for telehealth and home health monitoring is predicted to grow from $3 billion in 2009 to an estimated $7.7 billion by 2012[1].
GE Chairman of the Board and CEO Jeff Immelt and Intel President and CEO Paul Otellini announced the alliance today, along with an investment of more than $250 million over the next five years for the research and product development of home-based health technologies. Key elements of the announcement include:
Immelt said, "Improving healthcare accessibility and reducing costs are essential to economic recovery and growth. We think this partnership offers the potential to lower costs by keeping people out of hospitals while giving health professionals the data they need to deliver the best possible care. Intel and GE share a vision to use technology to bring effective healthcare into millions of homes and to improve the lives of seniors and people with chronic illness. Together we can deliver innovative products to serve this rapidly growing market."
Otellini commented, "Most of the healthcare discussions today focus on the integration of more technology into traditional health care settings. While those investments are necessary and will create a more efficient health care system, it is not sufficient to meet the growing needs that are about to impact a system that is already at a saturation point. The GE and Intel partnership will not only help seniors and the chronically ill, but will also take a giant step forward in changing how healthcare is delivered."
GE and Intel are currently active in patient monitoring and home health, with well-recognized brands and strong sector expertise:
Both companies recently announced their involvement in externally funded independent living and home health research programs; GE Healthcare is leading a consortium of private and public sector organizations in a $5 million three-year home health research program funded by the Hungarian government. Intel and the Irish Development Agency have established a $30 million TRIL Centre (Technology Research for Independent Living), bringing together world-class industry and academic experts to research independent living technologies.
In the United States the Federal Interagency Forum on Aging-Related Statistics forecast that by 2030, approximately 71.5 million people will be 65 and older, representing nearly 20 percent of the total U.S. population -- up from 37 million Americans in 2006. According to the Centers for Disease Control and Prevention, chronic diseases such as heart disease, diabetes and hypertension kill more than 1.7 million Americans per year, and are responsible for 7 of every 10 deaths in the U.S.
GE (NYSE: GE) is a diversified infrastructure, finance and media company taking on the world's toughest challenges. From aircraft engines and power generation to financial services, medical imaging, and television programming, GE operates in more than 100 countries and employs more than 300,000 people worldwide. For more information, visit the company's Web site at www.ge.com. More information about this announcement is available at www.ge.com/press/healthalliancep
Intel (NASDAQ: INTC), the world leader in silicon innovation, develops technologies, products and initiatives to continually advance how people work and live. Additional information about Intel is available at www.intel.com/pressroom and blogs.intel.com. More information on Intel's Health Guide is available at www.intel.com/go/healthguide.
Quiet Care is a registered trademark of Living Independently Group, Inc. and is used under license by General Electric Company. Intel is a trademark of Intel Corporation or its subsidiaries in the United States and other countries.
[1] Combined data for United States and Europe. Data Monitor reports Telehealth spending North America and Telehealth spending 2007 --2012
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