GE Healthcare said Tuesday that it will invest $2 billion to develop software for hospital information technology, patient monitoring and other technologies.
The company said that the $2 billion spread over five years will focus on asset management, hospital operations, clinical effectiveness and patient care.
New applications by GE Healthcare will be created in collaboration with GE's software development arm and research hubs.
GE is increasingly competing with established software giants such as IBM. The Internet of things, or industrial Internet as GE calls it, means that every company has the potential to be a software player.
The Holy Grail for the healthcare industry is to connect patient data and monitoring with backend systems to improve care and cut costs. The Federal government, insurers and hospitals are looking to technology such as big data, analytics and sensors to improve operations.
GE Healthcare, which has more than 3,000 software developers, has been pitching a model for medical information management that focuses on patient data repositories, archives for multiple specialties, departments and the technology connections and standards linking them.