GE HealthCare Spinoff Planned for January 2023

GE announced Monday (Sept. 12) that the previously-declared spinoff of its health unit into a freestanding company, GE HealthCare, is scheduled for January 2023.

The Boston-based conglomerate also identified the new company’s top leadership and board of directors in a press release. H. Lawrence Culp Jr., GE’s chairman and CEO and the chief executive of GE Aerospace, is slated to be non-executive chairman of the new company.

Meanwhile, the chief executive of GE HealthCare, Peter Arduini, will serve as a director of the company.

Per the release, the new board is set to include Rodney Hochman, president and CEO of Providence health system, and Lloyd Howell Jr., chief financial officer and treasurer of Booz Allen Hamilton Holding Company.

The board will also feature health policy expert Risa Lavizzo-Mourey; former HP executive Catherine Lesjak; Honeywell’s senior vice president and general counsel Anne Madden; Cleveland Clinic CEO and President Tomislav Mihaljevic; T. Rowe Price Group Director William Stromberg; and Phoebe L. Yang, general manager of the healthcare unit of Amazon Web Services.

Culp said in a prepared statement that the new directors “bring a diverse range of perspectives and backgrounds to support the company’s ambitions, including deep industry knowledge in patient care and healthcare systems, capital allocation experience to support organic and inorganic growth, management and financial expertise, and digital innovation leadership.”

Arduini added that GE HealthCare’s goal is “to lead the new era of precise, connected, and compassionate care,” and said the new company’s board brings expertise in “safety, quality, innovation and trust.”

GE’s healthcare unit spinoff comes as consumers appear to be increasingly comfortable balancing online and in-person care. The trend was verified in a recent report by PYMNTS and CareCredit called “The Connected Economy: Omnichannel Healthcare Takes Center Stage.”

See also: The Connected Economy: Omnichannel Healthcare Takes Center Stage

That report found that 46% of U.S. consumers interact with their healthcare providers both in-person and through digital tools.