GE Healthcare signs first MES agreement in US


GE Healthcare signs first MES agreement in US


GE Healthcare has signed a 14-year managed equipment service (MES) agreement to exclusively supply the Heritage Valley Health System (HVHS) with advanced imaging equipment.

HVHS stretches across counties in western Pennsylvania, eastern Ohio and the West Virginian panhandle, servicing approximately 167,000 patients at its main campus and 18 satellite facilities.

This deal is the first of its kind GE has signed in the US, and it is part of a growing industry trend aimed at improving patient access to innovative medical technology while giving manufacturers a chance to prove the value of their products.

For many smaller healthcare systems, the latest in medical technology is not always financially feasible, because they lack the working capital to make large investments. By signing an exclusive MES deal with a med tech company and making fixed payments over time, these hospitals can continuously update their equipment without overly stressing their budget, according to GE Healthcare.

In addition to GE, Medtronic, St Jude, J&J, and Phillips, all have entered into these deals with hospital systems worldwide, providing the latest in cardiac devices and orthopedic implants to hospitals that might otherwise be unwilling to take the risk.

John Luellen, chief operating officer of HVHS, said that the strategic deal with GE, which will provide the latest MRI and CT scanners, will allow HVHS to be “two steps ahead of innovation at all times—in technology, in expertise and in business.”
He added: “The MES agreement is a fixed capital expense that includes replacement and associated construction costs as well as ongoing staff training and service.”

Lee Cooper, chief executive officer of GE Healthcare in the US and Canada, commented: “Through strategic models, such as MES structures, health systems like Heritage Valley prepare for the future with advanced imaging technologies and services.
“As part of its agreement with GE Healthcare, Heritage Valley will move from a model of fluctuating capital expenditures to one that is more predictable and consistent over a 14-year commitment.”

In November, GE signed a similar agreement with Humber River Hospital in Toronto, Canada. GE had been negotiating with MacKenzie Health System for an alliance that would help build a ‘smart hospital’, but that deal ultimately went to Philips.

GE Healthcare, Managed equipment service, Heritage Valley Health System, US, Healthcare