GE Healthcare has planned an investment of $6 billion spread over six years and out of which, $3 billion is earmarked for research and development. Around $2 billion is allocated for financing the healthcare information technology in rural areas and $1 billion for partnership initiatives. These investments are for the company's new business model 'Healthymagination' which focuses on low cost, high quality products that can be affordable for patients in the emerging markets.
With Indian healthcare industry at a transition, new models are needed to sustain growth. Advanced technology lowers healthcare costs by 60 to 70 per cent. This is where GE Healthcare intends to accelerate growth with the launch of 100 innovative products to increase the healthcare quality by 15 per cent, stated TP Chopra, president and CEO, GE India.
The company has devised strategies based on supply chain and local and new market opportunities. The easing of liquidity crunch with lower interest rates have opened up higher consumption opportunities in India and emerging markets, stated Chopra.
"Only cost-effective, high technology medical solutions for rural areas can change the way of healthcare. This is where we have devised bedside pocket size solutions which lower cost of procedures," stated V Raja, president and CEO, GE Healthcare, South Asia.
The company announced the availability of its simple and easy to handle medical equipment: Lullaby Baby Warmer priced at $3,000 and the portable ultrasound Logiq P3 at a cost of $25,000. Both the products developed at its manufacturing facility in Bangalore are at one third the cost.
The Lullaby baby warmer which fulfils the global quality standards of the International Electro-technical Commission (IEC) will help reduce infant mortality that is currently estimated at 56.72 for every 1,000 babies born. India accounts for a birth rate of 13 million babies annually. Around 12 lakh infants succumb during the first month of life which is one fourth of the global number. The installations of warmers at hospitals in the country are expected to prevent 25 per cent of fatality. In terms of price, the GE warmers are expected to save at least 70 per cent of the cost of imported warmers installed at hospitals in the country.
In the case of Logiq P3 which is light weight, easy to deliver high resolution clinical images, will help in multiple areas of radiology to Ob-Gyn practices.
The India strategy focuses on low cost, higher access and quality. At least 50 of the 100 innovations are being developed from India for the world. As part of its Grameen healthcare effort, GE Healthcare will access 10 countries beginning with Bangladesh. It will develop products suitable for the region at an affordable cost.
The company registered revenues to the tune of $500 million in 2008 and is expected to double in 2012.