GE Healthcare, Jefferson Health kick off work targeting $1 billion in efficiencies
GE Healthcare and Jefferson Health in Philadelphia are working together on an eight-year, shared-risk effort aimed at transforming healthcare in the Philadelphia region.
The goal, executives say, is to remove redundancies and maximize sourcing efficiencies.
One of only five such long-term relationships in the U.S. – and the largest one – GE Healthcare and Jefferson Health together have the potential to generate $500 million to $1 billion in efficiencies, the partners say.
“We have a unique opportunity to become the region’s leader in delivering even greater value to our patients – offering them high-quality care at a lower cost, wrapped around an exceptional patient care experience – every time,” said Stephen K. Klasko, MD, president and CEO of Thomas Jefferson University and Jefferson Health, in a statement.
As Klasko sees it, GE’s industry knowledge and global expertise will help the health system achieve efficiencies, which can be reinvested in new initiatives.
He noted that Jefferson Health and GE staff would work side-by-side in to gain a deep understanding of operations and processes.
The teams will focus on strategic growth, operations, integration and performance improvement opportunities – with a key focus on technology to help provide the "best-in-class" affordable care.
"With the healthcare industry facing unprecedented levels of patient demand and increasing cost pressures, it’s great to see health systems like Jefferson seek new and innovative ways to improve better outcomes for patients," said John Flannery, incoming CEO and chairman-elect of GE, in a statement.
He noted that the collaborative work is financially tied to shared success. The shared-risk model aligns the economic interests of Jefferson Health with GE Healthcare.
Both organizations have agreed to milestones that must be achieved throughout the eight-year relationship. A portion of GE Healthcare’s fees are contingent upon the level of success both organizations have in reaching certain integration goals.
The shared-risk approach is similar to initiatives GE Healthcare has forged with other health systems, such as the 10-year project Partners Healthcare in Boston announced in May 2017. The project aims to increase the use of artificial intelligence – the better to improve healthcare outcomes.
In April 2017, GE Healthcare also launched a seven-year tailored initiative with Hartford Healthcare in Connecticut to boost patient care and efficiency.