Sacramento, Calif.-based Sutter Health furthered its collaboration with GE HealthCare by inking a seven-year deal Jan. 14, one of the health tech company's largest-ever strategic partnerships with a health system.
Becker's talked to Sutter Health COO Mark Sevco about the significance of the agreement and how clinicians and patients are expected to benefit. The conversation has been lightly edited for clarity and brevity.
Question: Can you explain how significant this deal is for Sutter Health, its clinicians, and patients?
Mark Sevco: Sutter Health is a comprehensive, integrated health system in northern California with 27 hospitals, 300 ambulatory sites, and imaging modalities. This seven-year partnership with GE adds significant value to our mission: "Patients first, people always."
Imaging is a critical part of our service platform. This agreement focuses on X-ray, MRI, CT, SPECT, ultrasound, and cath labs. It's not about robotics or oncology but strictly imaging.
The value lies in transitioning from a vendor relationship to a partnership. GE already provides 60% of our imaging, and this collaboration enhances service, access, quality and cost-effectiveness. Let me break it down into four components:
Technology: We're adopting a fleet maintenance approach. GE will replace outdated imaging equipment (10-15 years old) at a discounted rate and provide first access to new technology. They'll also offer software upgrades to improve imaging times, reducing procedures from 45 minutes to 30.
Service: GE will provide comprehensive maintenance and repair services to ensure equipment runs efficiently, minimizing downtime. This includes a standardized approach, replacement parts, and skilled technicians to keep systems operational.
Pipeline initiatives: We're collaborating on workforce development by creating career pathways through scholarships and programs in underserved areas. This partnership supports job creation and education in healthcare fields.
Efficiency: GE's software will help manage capacity, optimizing scheduling and throughput for imaging systems. For instance, ensuring MRI machines are utilized fully from 8 a.m. to 8 p.m.
We're excited about this partnership and the improvements it will bring to patient care.
Q: I read in Bloomberg that this deal could generate a billion dollars in revenue. Is that accurate?
MS: This is a seven-year contract. While Bloomberg's figure includes staff and equipment costs, Sutter Health anticipates $30 million to $40 million in annual savings through this partnership. The savings stem from lower costs, standardized equipment and enhanced service.
This isn't an investment in GE HealthCare but a relationship. We're standardizing GE products and services to gain cost savings and better equipment maintenance.
Q: AI is mentioned as a significant aspect of this deal. How does that impact patients and clinicians?
MS: AI played a big role in our decision. GE has over 70 AI algorithms that our radiologists are copiloting to improve efficiency and diagnostics. AI can help with predictive imaging and enhancing workflows. GE will also collaborate with Sutter's innovation center on AI pathways and algorithms, some of which are still in development.