Fresh off the announcement that it completed the acquisition of Philadelphia University, Jefferson has some more news: an eight-year partnership with Boston-based GE Healthcare.
In what the organization calls a “risk-sharing relationship,” GE staff and equipment will be deployed at 13 area hospitals with one goal in mind: spot areas where GE can help cut cost and reduce inefficacies. The projected size of expenses that could be cut is in the $500 million to $1 billion range, according to the company.
As Philly.com reports, about 200 GE staffers will be joining the effort: 100 of those directly at Jefferson network hospitals. Seventy Jefferson staffers will transfer over to work as GE employees as part of the deal.
Other than the projected cost-cutting potential, no specific financial terms from the deal were disclosed. The organization did say that a portion of GE Healthcare’s fees are tied to meeting specific milestones throughout the eight-year period.
— Jefferson Hospitals (@TJUHospital) July 17, 2017
“We need to transform our industry, continue to be optimistic about our future, and embrace disruption, such as consumerism, to effectively change the way we deliver health care in this country,” Jefferson CEO Stephen Klasko said in a statement.
Jefferson, which has been on a tech push of late, said this was the largest partnership GE Healthcare had with any U.S. institution. It’s also one of five such long-term agreements.