Temple University Health System (TUHS) and GE Healthcare has announced a pioneering collaboration between a healthcare 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 Mr Jeffrey Immelt, chairman and CEO of GE. He added, "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 Dr Larry R Kaiser,president/CEO and dean of Temple's healthcare enterprise. He added, "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." 

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.