Covering the Land of Lincoln

J.P. Morgan 2023 healthcare conference live updates, Day 2

GE HealthCare is investing in artificial intelligence and connected devices to further embed its presence in the health system market, CEO Peter Arduini said.

The company, which spun off from General Electric on Jan. 4, is aiming to grow its AI and connected devices business, Arduino said. GE HealthCare’s biggest revenue generator is its legacy radiology and imaging equipment business, but the AI ​​and connected devices segment is growing at a faster rate and creates recurring revenue, he said.

“This is a great business for driving cash,” Arduino said. “In the next couple of years, we won’t have any products coming out that don’t have embedded AI in them. It’s just the way things are going.”

Already, GE HealthCare has embedded AI into several applications and products, including new ultrasound and radiology devices.

“Machine learning is [being used] across the board,” Arduino said. “We want to index more towards the data because it is a great enabler for the company.”

While Arduino admitted inflation is affecting GE HealthCare’s bottom line, but said demand for its products remains strong. This is partially due to the backlog of procedures postponed during the first year of the COVID-19 pandemic, he said.

On Monday, GE HealthCare agreed to purchase Imactis, an advanced radiology equipment manufacturer. Arduino said the company will continue to be active in mergers and acquisitions and will specifically seek digital ecosystem partnerships.

In advance of its fourth-quarter and full-year earnings report, GE HealthCare announced it generated $18.9 billion in revenue for 2022, a 4% increase. The imaging equipment business represented half of that revenue.

—Brock EW Turner

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