Ge Healthcare

OverviewEMI takeover turned into the doldrums as
GE Healthcare has a range of products and servicesReaganomics sent the US dollar soaring, so in 1984
that include medical imaging and informationGE bought a 49% share of YMS (Yokogawa Medical
technologies, medical diagnostics, patient monitoringSystems) a Japanese company.
systems, drug discovery, and biopharmaceuticalYMS proceeded to produce high quality low cost
manufacturing technologies.diagnostic equipment for the world market with
From a brief period from the close of the Amershamastounding energy, producing new CT models with a
acquisition in April 2004 - June 2005, GE Healthcarespeed that was and is hard to match.
was organized into two primary business segments:In 1983 GE Medical started investing heavily in
GE Healthcare Technologies, led by Joseph Hogan,Magnetic Resonance Imaging (MR) technology,
and GE Healthcare Bio-Sciences, the formerinvesting nearly 1 billion US dollars in a new plant in
Amersham business segments that were led byWaukesha, and the MR Signa was born, which would
Peter Lscher. Those business segment names andgo on to become the very successful MR model
organizations were formally dropped in June 2005.range. The magnet plant in Florence (USA) was
Business unitsopened a short time later, giving GE its own magnet
GE Healthcare currently has 6 primary business units:production.
GE Healthcare Global Diagnostic Imaging,In 1985 GE acquired Technicare from Johnson and
headquartered in Waukesha (near Milwaukee),Johnson. Originally named Ohio Nuclear, and in 1979,
Wisconsin, USA. The Diagnostic Imaging businessafter another fusion, Ohio Nuclear Unirad, the name
includes X-ray, digital mammography, Computedwas changed to Technicare in 1982. Technicare (with
Tomography (CT), Magnetic Resonance (MR) andheadquarters in Cleveland Ohio) had been producing a
Molecular Imaging technologies.range of rotate-stationary CTs with an installed base
GE Healthcare Clinical Systems, headquartered inin the thousands, as well as some x-ray diagnostic
Wauwatosa (suburb of Milwaukee), Wisconsin, USA.equipment and a nascent MR product range.
This business provides a range of healthcareUp to this time the medical Systems Division had
technologies and services for clinicians and healthcaresimply been divided into domestic and international,
administrators. It includes ultrasound, ECG, bonebut in 1987 it was decided to re-organize into the
densitometry, patient monitoring, incubators andthree oles of America, Europe and Pacific. In 1988 GE
infant warmers, respiratory care and anesthesiaMedical Europe merged with CGR (a medical
management. In collaboration with GE Healthcare, Theequipment supplier based in France) to form General
Wayne State University School of Medicine offers anElectric CGR Medical Systems. The European
integrated radiology curriculum during its MD Programheadquarters were moved from Hammersmith (UK)
led by investigators of the Advanced Diagnosticto Buc near Paris.
Ultrasound in Microgravity study. GE has donatedIn 1992, GE had a setback after long negotiations to
over one million dollars of Logiq E Ultrasoundbuy Picker International, who were a major producer
equipment for this study.of CT and MR equipment, The deal was not
GE Healthcare IT, headquartered in Barrington, Illinois,approved by the American authorities, and so GE
USA. Healthcare IT provides clinical & financialjust bought the Picker Service organization in the U.K.,
information technology solutions such as departmentalleaving the rest of Picker intact.
IT products, RIS/PACS (Radiology InformationIn 1994 it was decided to change the name in Europe
Systems/Picture Archiving and Communicationfrom GE-CGR back to General Electric Medical
Systems) and CVIS (Cardiovascular InformationSystems. At the close of 1998 GE Medical acquired
Systems), as well as revenue cycle management andthe Nuclear and MR businesses of Elscint, (then a
practice applications.division of Elron, based in Haifa, Israel), the CT
GE Healthcare Medical Diagnostics, headquartered inbusiness being bought by Picker, and in the same
Little Chalfont, Buckinghamshire, UKA. Medicalyear Marquette Medical Systems became a wholly
Diagnostics researches, manufactures and marketsowned subsidiary of GE Medical. In 1998 GE medical
imaging agents used during medical scanningbought Diasonics Vingmed Ltd. from Elbit Imaging
procedures to highlight organs, tissue and functions(Haifa Israel), thus expanding its ultrasound imaging
inside the human body.business.
GE Healthcare Life Sciences, headquartered inIn 2001, GE Medical Systems acquired San Francisco,
Uppsala, Sweden. This division produces technologyCA based CT maker Imatron, Inc for $210 million.
for drug discovery, biopharmaceutical manufacturingImatron produced an Electron beam tomography
and cellular technologies. It also makes systems and(EBT) scanner that performs imaging applications
equipment for the purification of biopharmaceuticals.used by physicians specializing in cardiology,
GE Healthcare Surgery, headquartered in Salt Lakepulmonology and gastroenterology. The formal
City, Utah, USA. This provides tools and technologiesImatron business was later incorporated into GE
for cardiac, surgical and interventional care, fromHealthcare's Diagnostic Imaging business segment.
cardiac catheterization labs, diagnostic monitoringIn early 2002, GE Healthcare had acquired
systems, data management systems to mobileMedicaLogic (creator of the former Logician, an
fluoroscopic imaging systems, navigation and 3Dambulatory Electronic Medical Records system) for
visualization instrumentation.approximately $32 million. By Jan 2003, GE acquired
While it has offices around the globe, GE HealthcareMillbrook Corporation, maker of Millbrook Practice
has major regional operations in Buc (suburb of Paris),Manager, a billing and scheduling system for doctors
France; Budaors(suburb of Budapest), Hungary;Hinooffices. GE Healthcare IT would later merge the two
& Tokyo, Japan; Helsinki, Finland; and Bangalore,products into a single PM/EMR solution, although the
India.stand-alone EMR product is still available and in
Historydevelopment.
In 1893 C.F. Samms and J.B. Wantz were makingAlso in 2003, GE Healthcare acquired Instrumentarium
dental engines and beer pumps, and by October 1895(including its Datex-Ohmeda division), a producer,
had a staff of 6 in a 30 square meter basement andmanufacturer, and supplier of anesthesia machines
a capital of $3,000 invested in Victor Electric Co.and mechanical ventilators. To satisfy regulatory
Victor Electric plunged into the x-ray business and byconcerns in the United States and in Europe, GE
1896 (one year after Roentgen discovery) wereHealthcare was forced to divest the Spacelabs
making x-ray machines. The business grew rapidlyMedical division of Instrumentarium. Currently, GE
and so, in 1896, moved into new premises threeHealthcare owns 80% of all anesthesia machines in
times the original size, but this did not solve thethe United States and 60% of the machines in the
space problems and the company made 3 moves byworld. The former Instrumentarium business was
1899.incorporated into GE Healthcare's Clinical Systems
Victor Electric had competitors. In 1896 a G.A.Fryebusiness segment.
began making x-ray tubes and in 1897, that businessIn 2004, the former Amersham plc business
was purchased by Swett & Lewis, and the firstsegments were separated into the GE Healthcare
merger in the x-ray business had started.Medical Diagnostics and Life Sciences business
During the first years, it was easier to keep up withsegments.
the competition than space requirements. By 1903,Also in 2004, GE Healthcare along with other
Victor Electric had outgrown its facilities at 418healthcare companies built a research reactor for
Dearborn St. in Chicago and bought two floors of aneutron and unit cell research at GE's European
building at 55 Market Street, Chicago. This was againResearch Center near Garching (outside of Munich),
only a temporary stop; by 1910 it was too small andGermany. It is the only such reactor currently in
the firm moved again in 1911 to a building at theoperation.
corner of Jackson Blvd. and Damon Avenue. This wasIn 2005, Sir William Castell, CEO of GE Healthcare and
the first permanent home of Victor Electric Co. Theyformer CEO of Amersham plc stepped down as CEO
stayed there 35 years and during this time, graduallyto become Chairman of the Wellcome Trust -- a
acquired all the space in the building and severalcharity that fosters and promotes human and animal
around it.research -- in the United Kingdom. Former GE Medical
During the first 20 years of the x-ray business, manySystems CEO Joe Hogan became the overall CEO
new names appeared. In 1901 the Western Electricfor the GE Healthcare business.
Coil Co. was formed. In 1902 MacAlaster &In 2005, Dental Imaging operations were separated
Wiggin purchased the x-ray tube business of Swettfrom GE Healthcare. The PaloDEx Group Oy was
& Lewis. Two other companies were the Radiofounded and continues the business with its
Electric Co., which was later to be known assubsidiaries Instrumentarium Dental and SOREDEX.
Snook-Roentgen Manufacturing and the ScheidelSpecifically, Instrumentarium Dental continues the
Western X-Ray Coil Co.brands Orthopantomograph and intraoral systems
In 1916, the first significant merger took place,FOCUS and SIGMA, formerly known as
Scheidel Western, Snook-Roentgen, MacAlasterInstrumentarium Imaging or GE Healthcare products.
& Wiggin, and Victor Electric Co. were mergedIn September 2005, GE Healthcare and IDX Systems
with Victor, the surviving name. Victor two foundersCorporation announced that they entered into a
had key roles in the new firm; C.F.Samms wasdefinitive, $1.2 billion merger agreement for GE to
president and J.B.Wantz was Vice-President ofacquire IDX, a leading healthcare information
manufacturing and engineering.technology (IT) provider. The acquisition was
Four years later, in 1920, a second major merger wascompleted in January 2006. IDX was folded into GE
accomplished as Victor was partially acquired byHealthcare Integrated IT Solutions, which specializes
General Electric which was, at that time, thein clinical information systems and healthcare revenue
foremost manufacturer of x-ray tubes.management.
The marriage of Victor Electric and General ElectricOn 4 February 2008, GE Healthcare announced that it
became complete of July 28th, 1926 when Victorhas completed the acquisition of Whatman plc
was declared a wholly owned affiliate of General(LSE:WHM) , a global supplier of filtration products and
Electric. The merger brought renewed vitality to thetechnologies at 270p per share in cash for each
organization and Victor entered the foreign marketWhatman share, valuing Whatman at approximately
with equipment sold and serviced in nearly 70363 million (approximately $713 million.)
countries. In 1930, the name was changed fromIn July 2008, Joseph Hogan announced his intent to
Victor to General Electric X-Ray Corporation.leave his post as CEO of GE Healthcare to take the
World war II saw the dramatic use of x-rays inrole of CEO at ABB.
industry for non-destructive testing of war materials.On July 17, 2008, GE Healthcare announced John
It also saw the broad use of x-rays as a medical toolDineen had been chosen to replace outgoing CEO
for military services.Joseph Hogan. Mr. Dineen had been head of GE's
As the war ended, GE X-Ray Corporation growth didTransportation division since 2005.
not; it soon became evident that more space wasManagement
needed and it was time to leave Jackson Blvd.President and CEO: John Dineen
Chicago. In Milwaukee was a 43 acre site which hadPresident and CEO, Global Diagnostic Imaging Mark
been used for building turbochargers during the war.Vachon
The street in front was renamed Electric Avenue,President and CEO, Integrated IT Solutions Vishal
and the General Electric X-Ray Corporation had aWanchoo
new home in 1947.President and CEO, Clinical Systems Omar Ishrak
In 1951, the corporate structure was dissolved andPresident and CEO, Life Sciences Peter Ehrenheim
the name changed to General Electric x-RayPresident and CEO, Medical Diagnostics Pascale Witz
Department. This new name lasted less than 10 yearsCEO, Surgery Peter McCabe
as the department divested itself of its industrialCompetition
x-ray business, widened its medical business, andSome major competitors of GE Healthcare are
took on the name of GE Medical SystemsSiemens Medical Solutions, Agfa, Philips, MAQUET and
Department. One of the reasons for the name ofToshiba.
Medical Systems was due to the increase in theExternal links
electro-medical business, which began in 1961 with theOfficial Site.
introduction of patient monitoring equipment. By 1967Notes
modular equipment was developed which was soon^ GE to reorganize operations; Louisville unit not
popular in cardiac and intensive care units. Early inincluded - Business First of Louisville:
1960, pacemakers were developed in Corporate^ A Pilot Study of Comprehensive Ultrasound
Research & Development in Schenectady, and inEducation at the Wayne State University School of
1969 the Standby Pacemaker was developed.Medicine
In 1968, the Biomedical Business Section opened its^
first factory in Egerton Avenue. Late in 1970 a^ GE Healthcare, Vishal Wanchoo, Bio
surgical package was introduced and in 1971,^
equipment to monitor blood gasses during surgery^
was introduced.^
Later in 1971, Biomedical opened a 9,000 square^
meter admin and engineering building opposite its^ The PaloDEx Group history
factory and in 1972, the section was renamed The^ Instrumentarium News and Events
cardio-Surgical Product Section. With the growth of^ The ABB Group: ABB appoints Joseph Hogan as
its medical business, the General Electric Companynew CEOv  d  e
upgraded the department to The Medical SystemsGeneral Electric Co.
Division in 1971. Also in 1971, a major expansionFounders
programme was started and the Waukesha factoryThomas Edison  Edwin J. Houston  Elihu Thomson
was planned. Work started in July 1972, ansd wasCorporatedirectors
completed in 1973.James Cash, Jr.  Ann Fudge  Claudio Gonzalez 
In 1973, work on CT was started and eventually theSusan Hockfield  Jeffrey Immelt  Andrea Jung 
first CT was installed in 1976, and development wentAlan Lafley  Robert Lane  Ralph Larsen  Rochelle
on to the first CT 8800, and after long negotiations,Lazarus  Sam Nunn  Roger Penske  Robert
the medical division of EMI was acquired in late 1980.Swieringa  Douglas A. Warner III  Bob Wright
The Americal Anti-Trust Authorities stopped thePrimarybusinesses
takeover in the USA however, and the EMI factoryGE Capital  GE Technology Infrastructure  GE
in Chicago was bought up by Omni-Medical, whoEnergy Infrastructure  GE Consumer &
continued to make CTs for a number of years.Industrial  NBC Universal (80%)
Meanwhile, back at GE, the patient Monitoring Dept.Annual revenue  USD 163.
was sold off in 1981. The initial boost provided by the