General Electric and Intel have formed a joint venture that focuses on telehealth.
According to the companies, the company will combine the assets of GE's Healthcare Home Health unit and Intel's Digital Health Group. The terms weren't disclosed, but the joint venture is a 50-50 ownership split.
The two companies have been partners on the health care front. In April 2009, GE and Intel said they were collaborating on chronic disease management and using technology to deliver healthcare to seniors in their homes.
Indeed, the new company will have a bevy of products, technology and assets focused on remote patient monitoring and assistive living tools. Intel's Health Guide (right) and Reader as well as GE Healthcare's QuietCare (bottom right) will be among the key products of the new company, which has yet to be formed.
Intel CEO Paul Otellini said that the model of healthcare needs to be rethought to include behavior change and care outside of the hospital or clinic. GE CEO Jeff Immelt said the joint venture is also aimed at cutting healthcare costs.
There are a few details yet to emerge. The company will be based in Sacramento and Intel's Louis Burns, general manager of the digital health group, will be CEO. Omar Ishrak, president and CEO of GE Healthcare Systems, will be chairman. Beyond those two, the new company needs to build out its team, assets, technology development and sales and marketing functions.
This post was originally published on Smartplanet.com