GE, Intel form healthcare joint venture

Certainly the top story for Monday is the announcement that GE and Intel have created a 50/50 joint venture to create a new healthcare company focused on telehealth and independent living. The company will combine the assets of GE Home Health and Intel Digital Health, which include not only QuietCare and the Intel Home Health Guide (both well known to our readers), but also the Intel Reader text-to-speech assistive technology.  According to their joint statement, this new joint venture stems from their April 2009 alliance and ‘common vision to use technology to bring more effective healthcare into millions of homes.’ The new operation will be located in Sacramento CA and expected to start by end of year:  the CEO will be Louis Burns, currently VP/GM of Intel Digital Health, and chairman of the board will be Omar Ishrak, president of GE Healthcare. Release (PDF).

On the announcement webcast, Burns commented that the joint venture would be ‘more agile out from under both parents’, but would draw on the resources of both in developing current and new technologies; Ishrak predicted a ‘business model change’. Current clients will continue to be supported.  To be determined:  the joint venture’s name; the effect on current brands; the management structure; revenue projections; from what areas/companies the expected ‘hundreds of employees’ will come (QuietCare is still based in NYC with GE staff in Waukesha, WI and Hungary; Intel is in Santa Clara well southwest of Sacramento), and what the impact will be on current partners/reseller relationships (Direct Supply and others for QuietCare in US; AMAC, GTSI, Fujitsu (Holland), Orange Healthcare (France), Telefonica (Spain) for Intel.

And what can this possibly mean….?