AI is also seen as a key driver by the company, being used to interpret X-rays to save radiologists on time and produce more accurate diagnoses, and helping make MR more accurate and easier to understand by eliminating noise that shows up in images.

"This was a hot division inside of GE. Maybe they can make decisions faster without the corporate structure," Jeff Goldsmith, president and founder of consulting firm Health Futures, told Modern Healthcare. "There is a lot of money pouring into AI.


Following the spin off, GE Healthcare plans to enter into more consulting and data analysis partnerships with providers, and is already expanding its network of command centers to acquire data in real time so it can streamline patient flow, reduce wait times, balance workload and increase clinical standardization. Its incoming CEO, Peter Arduini, may also do away with some products and businesses that are not central to the company and pursue acquisitions in more promising markets, according to The Wall Street Journal.

Other leading OEMs are taking similar approaches to GE. Siemens also spun off its healthcare business in 2018, while Philips sold its lighting, television and entertainment divisions over the last few years to focus on healthcare. Additionally, consolidation has given the six largest suppliers of MR equipment a 90% stake in the global market, according to Signify Research.

But despite its greater flexibility, GE Healthcare will face stiff competition from big players like Siemens and Philips. It also will be up against Chinese vendors who are expanding their global presence in markets for more affordable, lower-functionality systems. This includes Shanghai United Imaging Healthcare and Shenzhen Mindray Bio-Medical Electronics. “Looking internationally, it’s going to be more of a challenge for GE,” said Abrams.

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