10/21/2009
Thomson Reuters – Boston Bureau
* Fund to focus on technological development
* GE making changes to employee healthcare plan (Adds details)
NEW YORK, Oct 21 (Reuters) – General Electric Co (GE.N) is launching a $250 million investment fund intended to spur development of new technologies in the healthcare industry, the chief executive of the largest U.S. conglomerate said on Wednesday.
GE is in the midst of a major push in healthcare intended to “improve access and drive technologies that would improve access not just for the U.S., but globally,” said CEO Jeff Immelt at a press event in New York.
The company is also making changes to the healthcare plan it offers its employees, Immelt said.
GE Healthcare makes medical imaging equipment like ultrasound and CT-Scan machines and provides consulting services to hospitals.
GE’s healthcare arm, once one of its fastest-growing businesses, has slowed in the past few years, in part due to U.S. regulatory changes that made its pricey medical imaging devices less profitable for hospitals.
The Fairfield, Connecticut-based company has responded by focusing on developing lower-priced gear, with an eye towards boosting its presence in emerging economies such as China and India, which the company expects to grow more quickly in the coming years.
