GE HealthCare Technologies Inc. GEHC and Hartford Healthcare recently announced the renewal of their seven-year collaboration, The Care Alliance, that started in 2016. Per the renewal, the collaboration will extend through 2030.
Through 2030, The Care Alliance agreement will implement a systematic approach that prioritizes innovation, improving the experience of patients and staff and advancing imaging. The Care Alliance strives to assist Hartford HealthCare in increasing access to innovation while lowering the total cost of care for patients.
Price Performance
In the past six months, GEHC’s shares have rallied 41.3% compared with the industry’s rise of 19.0%. The S&P 500 has increased 20.4% in the same time frame.
Image Source: Zacks Investment Research
More on the Renewed Collaboration
Building on a successful first seven years, this strategic Care Alliance includes new components that will help Hartford HealthCare stay up to date with the most recent GE HealthCare’s technology as it develops, minimizing technology obsolescence and optimizing clinical capabilities.
The partnership includes GE HealthCare patient monitoring, anesthesia, maternal infant care, and diagnostic cardiology technologies. It will also expand patients' access to the most up-to-date imaging technology from GE HealthCare. Potential benefits include shorter scan times, shorter wait times for care, and improved diagnostic assessment accuracy for clinicians.
Under the parameters of the renewed collaboration, GE HealthCare specialists will be on hand to perform maintenance and repairs on all equipment as part of the extended service agreement. Furthermore, Hartford HealthCare's fleet of imaging technology will be enhanced with the newest tools and technology, thanks to routine equipment upgrades.
The comprehensive framework for optimizing the performance and durability of Hartford HealthCare's equipment with an emphasis on patient safety will be maintained through the cooperative connection with facilities, operations, clinical engineering, and GE HealthCare's project management and service teams.
Together with some of the current MRI, CT, PET/CT, and X-ray machines, GE HealthCare and Hartford HealthCare will also carry out build-in-place upgrades to update outdated systems with lower construction costs and less waste, equipment downtime and interference with patient care.
Many of the new imaging systems in the collaborative effort will include tested AI and machine learning software, which will augment clinical expertise. An example is Critical Care Suit 2.0, which is intended to speed up diagnosis, make the best treatment choices, and enhance patient outcomes. Another example is AIR Recon DL, which is likely to employ AI to enhance image reconstruction, using deep learning algorithms to improve the quality and speed of MRI scans.
Industry Prospects
Per a report by MarketsandMarkets, the global AI in healthcare market size is valued at $20.9 billion in 2024 and is expected to reach $148.4 billion by 2029 at a growth rate of 48.1%.
Growth of AI in the healthcare market is driven by the generation of large and complex healthcare datasets, the pressing need to reduce healthcare costs, improving computing power and declining hardware costs, and the rising number of partnerships among different domains in the healthcare sector.
Given the market potential of AI in healthcare, GE Healthcare’s AI Integrations are likely to boost its business and increase revenues.
Notable Developments
GE Healthcare recently entered a strategic care alliance with OSF HealthCare and Pointcore to help increase clinical and operational efficiencies, standardize care delivery models, and improve patient outcomes across OSF HealthCare. The tie-up is expected to leverage GE HealthCare’s innovative technology and Pointcore’s experience in managing non-clinical matters for hospitals and clinics.
The company announced its collaboration with MedQuest Associates to boost multi-site outpatient imaging networks. As a result of this three-year collaboration, GE Healthcare, with its innovative technologies, along with MedQuest’s outpatient imaging facilities, is set to optimize imaging solutions and support Theranostics.
GE HealthCare Technologies Inc. Price
GE HealthCare Technologies Inc. price | GE HealthCare Technologies Inc. Quote
Zacks Rank & Stocks to Consider
GEHC carries a Zacks Rank #3 (Hold) at present.
Some other top-ranked stocks in the broader medical space are DaVita Inc. DVA, Cardinal Health, Inc. CAH and Cencora, Inc. COR.
DaVita, sporting a Zacks Rank #1 (Strong Buy), has an estimated long-term growth rate of 12.1%. DVA’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 35.6%. You can see the complete list of today’s Zacks #1 Rank stocks here.
DaVita’s shares have gained 58.3% compared with the industry’s 18.9% rise in the past year.
Cardinal Health, flaunting a Zacks Rank of 1 at present, has an estimated long-term growth rate of 14.2%. CAH’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 15.6%.
Cardinal Health has gained 51.9% compared with the industry’s 3.2% rise in the past year.
Cencora, carrying a Zacks Rank of 2 at present, has an estimated long-term growth rate of 9.8%. COR’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 6.7%.
Cencora’s shares have rallied 51.5% compared with the industry’s 3.6% rise in the past year.
5 Stocks Set to Double
Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2024. Previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Today, See These 5 Potential Home Runs >>DaVita Inc. (DVA) : Free Stock Analysis Report
Cardinal Health, Inc. (CAH) : Free Stock Analysis Report
Cencora, Inc. (COR) : Free Stock Analysis Report
GE HealthCare Technologies Inc. (GEHC) : Free Stock Analysis Report
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
