GE Healthcare has announced it will sell its revenue cycle, ambulatory care and workforce management software units to private equity firm Veritas Capital for $1.05 billion, following earlier plans for General Electric to sell assets and rumors the entire company could be broken up.
The products moving to Veritas include Centricity Business, Centricity Practice Solution and the workforce management solution formerly known as API Healthcare.
In a press release, Veritas CEO Ramzi Musallam said the acquisition was an opportunity to “take advantage of a $9 billion market that continues to benefit from favorable sector trends” as the healthcare industry looks for more digital infrastructure and tools. Included with the sale of the workforce management software unit is GE Healthcare’s Value-Based Care Division.
“With Veritas’ support and resources, we are excited to continue deepening our commitment and capabilities to help healthcare providers manage their financial, clinical, and employee workflows across the continuum of care,” said Jon Zimmerman, vice president and general manager of value-based care solutions at GE Healthcare.
Kieran Murphy, CEO of GE Healthcare, said the rest of his division will continue to make investments in “core digital solutions,” including connected devices, artificial intelligence and enterprise imaging.
“We will continue to lead in data analytics, command centers, advanced visualization and image management tools to create better customer and patient outcomes,” Murphy said in a statement.
The sale is expected to close in the third quarter of 2018.
General Electric CEO John Flannery, Murphy’s predecessor as head of GE Healthcare, has prioritized shedding assets since taking over the top job in summer 2017. His stated goal has been to get rid of $20 billion in assets to “reset the company for a better future.” Some of his early moves have involved his former division, such as the October 2017 sale of the identity and access management business of GE’s population health company Caradigm to health IT security firm Imprivata.
A larger shift for GE has been rumored, with CNBC reporting in January a breakup of the company “could come as soon as this spring.” A GE spokesperson told HealthExec at the time that Flannery has “been taking a comprehensive look at every aspect of the company” in evaluating its portfolio, and that "all options are on the table.”