Seven-year collaboration targets $39 million in operational savings enabled by new technology and industry best practices
PHILADELPHIA, PA – August 25, 2015 – Academic medical centers across the U.S. are experiencing increasing pressure to enhance value – deliver higher quality at lower cost – as they continue to face challenges related to outcomes, cost control, market competition, and other dynamics. Initiatives to promote value typically involve reimbursement arrangements between health insurers and providers that align financial, efficiency and quality incentives.
Today, Temple University Health System (TUHS) and GE Healthcare announced a pioneering, first-of-its-kind risk collaboration between a health care technology company and an academic medical center that aligns incentives to promote value by providing higher-quality radiologic imaging services more efficiently at a lower cost.
The new arrangement targets improvements in specific operational, clinical and financial outcomes, putting TUHS on the cutting edge of delivering high-value imaging services across a health system and making GE Healthcare a pioneer in what could become a preferred business model over the next few years.
Under the seven-year agreement, TUHS and GE Healthcare will work together to achieve performance goals enabled by new technology and industry best practices. TUHS will modernize its radiological imaging equipment with state-of-the art technology from GE, while also benefitting from enhancements, including data storage and retrieval, service contract consolidation and consultation to optimize scheduling and workflow efficiency. The arrangement includes financial incentives aligning the parties toward realizing shared objectives, including a targeted $39 million in operational savings over the life of the contract.
“Like many health systems throughout the country, Temple University Health System faces clinical, operational and financial demands. GE Healthcare understands these market challenges, and we are dedicated to helping customers deliver the best outcomes in today’s environment,” said Jeffrey Immelt, Chairman and CEO of GE. “GE is honored to work with Temple University Health System in this strategic alliance designed to improve operational and clinical outcomes while reducing costs by $39 million.”
“This collaboration represents a new chapter in value-based healthcare contracting strategies,” said Larry R. Kaiser, MD, FACS, President/CEO and Dean of Temple’s healthcare enterprise. “Our collaboration with GE Healthcare provides Temple physicians and patients with access to the latest imaging technology while reducing its costs by millions of dollars, improving patient convenience and safety, enhancing clinical quality, increasing hospital efficiency, and promoting the Triple Aim of better care and better health at lower cost,” Kaiser added.
The strategic arrangement between TUHS and GE Healthcare applies to the radiology departments at Temple University Hospital’s Main, Episcopal and Northeastern campuses; Fox Chase Cancer Center and Jeanes Hospital.
About Temple Health
Temple University Health System (TUHS) is a $1.6 billion academic health system dedicated to providing access to quality patient care and supporting excellence in medical education and research. The Health System consists of Temple University Hospital (TUH), ranked among the “Best Hospitals” in the region by U.S. News & World Report; TUH-Episcopal Campus; TUH-Northeastern Campus; Fox Chase Cancer Center, an NCI-designated comprehensive cancer center; Jeanes Hospital, a community-based hospital offering medical, surgical and emergency services; Temple Transport Team, a ground and air-ambulance company; and Temple Physicians, Inc., a network of community-based specialty and primary-care physician practices. TUHS is affiliated with Temple University School of Medicine.
Temple University School of Medicine (TUSM), established in 1901, is one of the nation’s leading medical schools. Each year, the School of Medicine educates approximately 840 medical students and 140 graduate students. Based on its level of funding from the National Institutes of Health, Temple University School of Medicine is the second-highest ranked medical school in Philadelphia and the third-highest in the Commonwealth of Pennsylvania. According to U.S. News & World Report, TUSM is among the top 10 most applied-to medical schools in the nation.
Temple Health refers to the health, education and research activities carried out by the affiliates of Temple University Health System (TUHS) and by Temple University School of Medicine. TUHS neither provides nor controls the provision of health care. All health care is provided by its member organizations or independent health care providers affiliated with TUHS member organizations. Each TUHS member organization is owned and operated pursuant to its governing documents.
About GE Healthcare
GE Healthcare provides transformational medical technologies and services to meet the demand for increased access, enhanced quality and more affordable healthcare around the world. GE (NYSE: GE) works on things that matter - great people and technologies taking on tough challenges. From medical imaging, software & IT, patient monitoring and diagnostics to drug discovery, biopharmaceutical manufacturing technologies and performance improvement solutions, GE Healthcare helps medical professionals deliver great healthcare to their patients. For more information visit our website www.gehealthcare.com.