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GE HealthCare's (GEHC) Tie-Up to Improve Care Accessibility
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GE HealthCare Technologies Inc. (GEHC - Free Report) recently entered a strategic care alliance with OSF HealthCare and Pointcore, Inc. to help increase clinical and operational efficiencies, standardize care delivery models and improve patient outcomes across OSF HealthCare. The tie-up is expected to leverage GE HealthCare’s innovative technology and Pointcore’s experience in managing non-clinical matters for hospitals and clinics.
It should be noted that OSF HealthCare is an integrated health system caring for patients across Illinois and Michigan, while Pointcore is a healthcare management and non-clinical shared services company.
The latest collaboration is expected to strengthen GE HealthCare’s foothold across a variety of care areas, including nuclear medicine, oncology and radiology, and boost its Imaging business.
Rationale Behind the Alliance
The agreements stand on two key pillars and are expected to deepen GE HealthCare, OSF HealthCare and Pointcore’s combined focus on a foundational alliance that includes investment in new technology systems, digital tools and resources, service and support across a variety of care areas. The alliance will also pave the way for a new approach to investment in innovation that uses advanced analytics to streamline capital management and allow OSF HealthCare to reinvest in care for patients.
On the back of these agreements, OSF HealthCare will be one of the first healthcare systems in the United States to implement GE HealthCare’s new version of Digital Expert Access with remote scanning. It is the first FDA 510(k)-cleared device to enable remote patient scanning on GE HealthCare Magnetic Resonance Imaging devices.
Per GE HealthCare’s management, the collaboration is aimed at increasing access to quality care for all patients, irrespective of their current location.
Industry Prospects
Per a report by Precedence Research, the global precision oncology market was valued at $100.06 billion in 2022 and is anticipated to exceed $258.35 billion by 2032 at a CAGR of approximately 9.9%. Factors like the rising prevalence of cancer and the development of advanced technologies are likely to drive the market.
Given the market potential, the latest collaboration is expected to provide a significant boost to GE HealthCare’s business globally.
Recent Developments
This month, GE HealthCare announced a three-year collaboration with MedQuest Associates to deliver enhanced patient care by providing access to advanced technologies from GE HealthCare and the infrastructure and resources from MedQuest that are needed to successfully optimize multi-site outpatient imaging networks.
The same month, GE HealthCare announced its fourth-quarter 2023 results, wherein it registered a solid uptick in its revenues both on a reported and organic basis. Revenues from its Imaging segment were also strong both on a reported and organic basis.
In January, GE HealthCare announced its latest innovation in electrophysiology (EP), the Prucka 3 with CardioLab EP Recording system, to help clinicians in the diagnosis and treatment of cardiac arrhythmias.
Price Performance
Shares of GE HealthCare have gained 18.7% in the past year against the industry’s 8.9% decline. The S&P 500 has witnessed 25.4% growth in the said time frame.
Image Source: Zacks Investment Research
Zacks Rank & Key Picks
Currently, GE HealthCare carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader medical space are DaVita Inc. (DVA - Free Report) , Cardinal Health, Inc. (CAH - Free Report) and Integer Holdings Corporation (ITGR - Free Report) .
DaVita, carrying a Zacks Rank #1 (Strong Buy), has an estimated long-term growth rate of 12.1%. DVA’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 35.6%. You can see the complete list of today’s Zacks #1 Rank stocks here.
DaVita’s shares have gained 47.1% compared with the industry’s 11.6% rise in the past year.
Cardinal Health, carrying a Zacks Rank of 2 (Buy) at present, has an estimated long-term growth rate of 15.9%. CAH’s earnings surpassed estimates in each of the trailing four quarters, with the average being 15.6%.
Cardinal Health has gained 33.6% compared with the industry’s 11.3% rise in the past year.
Integer Holdings, carrying a Zacks Rank of 2 at present, has an estimated long-term growth rate of 15%. ITGR’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 11.5%.
Integer Holdings’ shares have rallied 34.9% compared with the industry’s 9.3% rise in the past year.
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GE HealthCare's (GEHC) Tie-Up to Improve Care Accessibility
GE HealthCare Technologies Inc. (GEHC - Free Report) recently entered a strategic care alliance with OSF HealthCare and Pointcore, Inc. to help increase clinical and operational efficiencies, standardize care delivery models and improve patient outcomes across OSF HealthCare. The tie-up is expected to leverage GE HealthCare’s innovative technology and Pointcore’s experience in managing non-clinical matters for hospitals and clinics.
It should be noted that OSF HealthCare is an integrated health system caring for patients across Illinois and Michigan, while Pointcore is a healthcare management and non-clinical shared services company.
The latest collaboration is expected to strengthen GE HealthCare’s foothold across a variety of care areas, including nuclear medicine, oncology and radiology, and boost its Imaging business.
Rationale Behind the Alliance
The agreements stand on two key pillars and are expected to deepen GE HealthCare, OSF HealthCare and Pointcore’s combined focus on a foundational alliance that includes investment in new technology systems, digital tools and resources, service and support across a variety of care areas. The alliance will also pave the way for a new approach to investment in innovation that uses advanced analytics to streamline capital management and allow OSF HealthCare to reinvest in care for patients.
On the back of these agreements, OSF HealthCare will be one of the first healthcare systems in the United States to implement GE HealthCare’s new version of Digital Expert Access with remote scanning. It is the first FDA 510(k)-cleared device to enable remote patient scanning on GE HealthCare Magnetic Resonance Imaging devices.
Per GE HealthCare’s management, the collaboration is aimed at increasing access to quality care for all patients, irrespective of their current location.
Industry Prospects
Per a report by Precedence Research, the global precision oncology market was valued at $100.06 billion in 2022 and is anticipated to exceed $258.35 billion by 2032 at a CAGR of approximately 9.9%. Factors like the rising prevalence of cancer and the development of advanced technologies are likely to drive the market.
Given the market potential, the latest collaboration is expected to provide a significant boost to GE HealthCare’s business globally.
Recent Developments
This month, GE HealthCare announced a three-year collaboration with MedQuest Associates to deliver enhanced patient care by providing access to advanced technologies from GE HealthCare and the infrastructure and resources from MedQuest that are needed to successfully optimize multi-site outpatient imaging networks.
The same month, GE HealthCare announced its fourth-quarter 2023 results, wherein it registered a solid uptick in its revenues both on a reported and organic basis. Revenues from its Imaging segment were also strong both on a reported and organic basis.
In January, GE HealthCare announced its latest innovation in electrophysiology (EP), the Prucka 3 with CardioLab EP Recording system, to help clinicians in the diagnosis and treatment of cardiac arrhythmias.
Price Performance
Shares of GE HealthCare have gained 18.7% in the past year against the industry’s 8.9% decline. The S&P 500 has witnessed 25.4% growth in the said time frame.
Image Source: Zacks Investment Research
Zacks Rank & Key Picks
Currently, GE HealthCare carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader medical space are DaVita Inc. (DVA - Free Report) , Cardinal Health, Inc. (CAH - Free Report) and Integer Holdings Corporation (ITGR - Free Report) .
DaVita, carrying a Zacks Rank #1 (Strong Buy), has an estimated long-term growth rate of 12.1%. DVA’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 35.6%. You can see the complete list of today’s Zacks #1 Rank stocks here.
DaVita’s shares have gained 47.1% compared with the industry’s 11.6% rise in the past year.
Cardinal Health, carrying a Zacks Rank of 2 (Buy) at present, has an estimated long-term growth rate of 15.9%. CAH’s earnings surpassed estimates in each of the trailing four quarters, with the average being 15.6%.
Cardinal Health has gained 33.6% compared with the industry’s 11.3% rise in the past year.
Integer Holdings, carrying a Zacks Rank of 2 at present, has an estimated long-term growth rate of 15%. ITGR’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 11.5%.
Integer Holdings’ shares have rallied 34.9% compared with the industry’s 9.3% rise in the past year.