GE Healthcare sells value-based care division to Veritas Capital for $1.05 billion
Under the terms of a billion-dollar deal between GE Healthcare and Veritas Capital, the private equity firm will gain GE Healthcare’s value-based care division, which includes three businesses: revenue cycle management; ambulatory care management and workforce management.
Jon Zimmerman, vice president and general manager of value-based care solutions at GE Healthcare, said the arrangement will provide the focus and investment to take the business to the next level of scale and performance.
Both companies will work together to ensure a smooth transition of the businesses into a standalone company, he said.
The transaction is expected to close during the third quarter of 2018, subject to customary closing conditions and regulatory approvals.
"We see a tremendous opportunity to invest in this business and partner with management to take advantage of a $9 billion market that continues to benefit from favorable sector trends, particularly a real and urgent need to digitize our healthcare system," said Ramzi Musallam, CEO and managing partner of Veritas Capital, said in a statement.
Kieran Murphy, president and CEO of GE Healthcare, said he expects the business to flourish under Veritas Capital.
As for GE Healthcare itself, he said it would continue to invest in core digital solutions, such as smart diagnostics, connected devices, AI and enterprise imaging – all aimed at driving precision health for its customers.
“We will continue to lead in data analytics, command centers, advanced visualization and image management tools to create better customer and patient outcomes,” said Murphy.
The healthcare technology space has been a key focus area for Veritas Capital. It recently invested in Truven Health Analytics and Verscend Technologies, and it has a track record of strategically transforming businesses in the space by working closely with management teams to expand customer benefits.