Tuesday, July 18, 2017
GE Healthcare and Jefferson Health have announced an eight-year, shared-risk relationship that will help Jefferson strategically transform healthcare delivery in the Philadelphia region for the benefit of patients and their families. The goal of this collaboration is to create a forward-looking, robust health system by removing redundancies and maximizing sourcing efficiencies. One of only five such long-term relationships in the U.S. and its largest, GE Healthcare and Jefferson have the potential to generate $500 million to $1 billion in efficiencies with Jefferson that can be directed toward services that best meet patient needs over the term of this relationship.
“We have a unique opportunity to become the region’s leader in delivering even greater value to our patients — offering them high-quality care at a lower cost, wrapped around an exceptional patient care experience — every time,” said Stephen K. Klasko, MD, MBA, President and CEO of Thomas Jefferson University and Jefferson Health. “With the industry knowledge and global expertise of GE Healthcare, we will gain significant efficiencies that will enable us to reinvest in initiatives that improve the lives of those we care for.”
During the course of the relationship, Jefferson Health and GE staff will work side-by-side in areas throughout Abington, Aria, and Jefferson to acquire a deep understanding of operations and processes. The teams will focus on strategic growth, operations, integration, and performance improvement opportunities, while leveraging technology to deliver best-in class, seamless care that is convenient and affordable for the patient.
“With the healthcare industry facing unprecedented levels of patient demand and increasing cost pressures, it’s great to see health systems like Jefferson seek new and innovative ways to improve better outcomes for patients,” said John Flannery, incoming CEO and Chairman elect of GE. “This collaboration, which is financially tied to our shared success, demonstrates the confidence we have to jointly deliver world-class health care for the community.”
Through a shared-risk model that aligns the economic interests of Jefferson Health with GE Healthcare, both organizations have agreed to critical milestones that must be achieved throughout the eight-year relationship. A portion of GE Healthcare’s fees are contingent upon the level of success both organizations have in reaching certain integration goals.
“To prepare for the launch of this multi-year relationship, some of GE Healthcare’s senior-most leaders have been onsite, working closely with us to ensure we’re doing all we can up front to position all of us for long-term success,” said Kathleen Kinslow, Jefferson Health’s Chief Integration Officer and leader for this comprehensive initiative. “They have become valued members of our extended team and their level of engagement has been exceptional.”
Nationwide, academic medical centers are facing a growing gap between the cost of their clinical missions and the available funding that threatens the future of those missions. New approaches to optimize health system performance, including improving the patient experience and the health of populations at a lower cost, are essential to ensure sustainability. The unique relationship with GE Healthcare presents an opportunity to proactively address today’s healthcare challenges.
“Together, Jefferson and GE Healthcare are charting a new course by taking the necessary steps today that will help shift the healthcare paradigm,” said Klasko. “My message is simple. We need to transform our industry, continue to be optimistic about our future, and embrace disruption, such as consumerism, to effectively change the way we deliver health care in this country.”