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Temple, GE Highlight Risk Sharing in Imaging Deal

August 31, 2015
by David Raths
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Seven-year collaboration targets $39 million in operational savings

In announcing a new imaging contract, Temple University Health System (TUHS)  and GE Healthcare called the deal a “first-of-its-kind risk collaboration” between a healthcare technology company and an academic medical center because it aligns incentives to promote value by providing higher-quality radiologic imaging services more efficiently at a lower cost.

Under the seven-year agreement, TUHS, a $1.6 billion academic health system in Philadelphia, and GE Healthcare will work together to achieve performance goals enabled by new technology and industry best practices. Besides radiological imaging equipment, data storage and retrieval, and service contract consolidation, 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.

 “This collaboration represents a new chapter in value-based healthcare contracting strategies,” said Larry Kaiser, M.D., president and CEO and dean of Temple’s healthcare enterprise, in a prepared statement.

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.



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