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Microsoft quietly sold its stake in Caradigm health venture with GE

Microsoft has sold its stake in Caradigm, a joint healthcare venture it had formed with GE Healthcare in 2011, for an undisclosed amount.
Written by Mary Jo Foley, Senior Contributing Editor

For a number of years, it seemed like healthcare was one of the vertical markets where Microsoft planned to play.

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But it looks like Microsoft's current management has very different ideas about where and the extent to which Microsoft should be participating in the healthcare field.

GeekWire reported over the weekend that Microsoft has sold its 50 percent stake in Caradigm (an amalgamation of "paradigm" and "care") to GE Healthcare, its partner in that venture, for an undisclosed amount.

GE Healthcare took full possession of Caradigm on April 1, when it acquired Microsoft's shares, a Microsoft spokesperson confirmed.

"Microsoft and GE Healthcare are proud of the progress that Caradigm has made since its inception in 2012," the Microsoft spokesperson said. "This decision is consistent with both parties' business strategies and their continued commitment to the healthcare industry. Microsoft continues to deliver new technologies and work with partners across the industry to empower health organizations, communities and people to improve care. Microsoft will continue to work with Caradigm as a partner."

Microsoft and GE initially announced plans for Caradign in December 2011. In 2012, Microsoft and GE Healthcare received U.S. regulatory approval for their joint venture.

Caradigm is where Microsoft moved almost all of the hundreds people and handful of products that formerly were part of its Health Services Group. (The exception was the HealthVault service and team, which remained part of Microsoft.)

Among the Microsoft technologies Microsoft had moved over to Caradigm were the Amalga data aggregation system for hospitals, and the Sentillion healthcare identity-management products. GE is contributing a couple of its healthcare software products to the new venture, as well.

Microsoft bought Sentillion in December 2010. Amalga was based on the Azyxxi assets Microsoft bought back in 2006.

On April 28, Caradigm announced it had appointed Neal Singh as CEO of the wholly owned Caradigm GE Healthcare affiliate. Singh was a General Manager in Microsoft's Dynamics business for over a decade, according to the Caradigm press release, and was formerly Chief Technology Officer of the company.

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