GE HealthCare Technologies (NASDAQ: GEHC), a General Electric spinoff, is leveraging machine learning to drive innovation and improve healthcare efficiencies. As the company prepares to report its first-quarter earnings on April 25, its stock has risen over 46% this year.
While many companies use the AI buzzword to attract investors, GE HealthCare genuinely integrates machine learning into various aspects of their business.
Pursuing Growth Via Mergers And Acquisitions
In January, after separating from GE, GE HealthCare acquired French company Impactis, which employs computed tomography (CT) interventional guidance to assist surgeons. Additionally, GE HealthCare is developing CT navigation for real-time 3D CT images to guide stereotactic needles in various applications.
In February, GE HealthCare acquired Caption Health, a private firm utilizing AI in ultrasound scanning through Caption AI applications. Caption Health CEO Steve Cashman said this combination would enable earlier disease diagnosis, reducing costs and improving care.
Standing Out From The Competition
GE HealthCare distinguishes itself by creating integrated product systems, such as the ViewPoint 6 ultrasound machine with cybersecurity enhancements, improved reporting, and new tables and graphs. The company also employs AI in its MRI systems, as seen with the Signa Experience platform.
Additionally, GE HealthCare recently launched ReadySee, an asset management and network supervision solution that uses data to enhance the understanding of hospital devices and infrastructure while strengthening cybersecurity protocols.
Its primary strength is GE HealthCare’s ability to use data and machine learning to improve medical equipment functionality.
After receiving FDA clearance for its Carescape Canvas patient monitoring platform on April 20, GE HealthCare is off to a strong start. The platform employs innovative parameter technology, allowing customization for individual patient needs.
A Promising Beginning
Despite adjusting to its new status as an independent company, GE HealthCare is experiencing revenue growth, reporting $18.3 billion in sales in 2022, a 4.3% increase.
In four segments, GE HealthCare saw revenue gains in imaging, ultrasound, and patient care solutions in the fourth quarter. The company also forecasts 5-7% organic revenue growth this year, alongside anticipated annual adjusted earnings per share (EPS) between $3.60 and $3.75, compared to $3.38 in 2022.
Fostering Long-Term Customer Relationships
GE HealthCare’s use of AI allows its machines to adapt and helps healthcare facilities reduce labour costs. The company’s integrated systems promote customer loyalty by extending the equipment’s life before obsolescence.
Although operating as a new entity, GE HealthCare has approximately 50,000 employees and is executing a growth strategy that appeals to investors and customers. It also benefits from the experience and advantages of being part of GE before the spinoff.
With its strong focus on AI-driven innovations, GE HealthCare Technologies continues demonstrating a commitment to enhancing healthcare efficiency and outcomes. As a result, investors are taking notice, driving up the company’s stock by more than 46% this year.
Expanding AI Capabilities Through Strategic Partnerships
GE HealthCare’s Impactis and Caption Health acquisitions have bolstered its AI capabilities in CT interventional guidance and ultrasound scanning. These strategic partnerships are expected to accelerate the company’s growth and improve healthcare delivery and diagnostics.
Investing In The Future Of Healthcare
GE Healthcare is integrating AI into its existing products and developing new AI-powered technologies. This commitment to innovation positions the company at the forefront of healthcare advancements, ensuring long-term value for investors.
The company’s FDA-cleared Carescape Canvas patient monitoring platform exemplifies GE HealthCare’s dedication to developing state-of-the-art solutions that cater to individual patient needs. With the ability to adapt and streamline processes, GE HealthCare’s technologies are well-equipped to address the challenges faced by modern healthcare facilities.
Financial Performance And Outlook
GE HealthCare’s recent revenue growth, with sales increasing by 4.3% to $18.3 billion in 2022, reflects the company’s successful execution of its growth strategy. The anticipated organic revenue growth of 5-7% this year and a projected increase in annual adjusted earnings per share signals a positive outlook for investors.
Cultivating Customer Loyalty And Satisfaction
By incorporating AI into its product offerings, GE HealthCare ensures the longevity and adaptability of its medical equipment. This strategy fosters customer loyalty and satisfaction, as healthcare providers can rely on GE HealthCare’s integrated systems to remain relevant and effective in a rapidly evolving industry.
A Solid Foundation For Success
Despite its new status as an independent company, GE HealthCare leverages the experience and advantages gained during its time as part of GE. With a workforce of approximately 50,000 employees, the company is well-positioned to deliver on its growth strategy, offering investors and customers a clear path to success.
GE HealthCare’s focus on AI-driven innovation, strategic acquisitions, and commitment to developing cutting-edge medical technologies promise sustained value for investors. As the company continues to grow and adapt, it remains poised to shape the future of healthcare.
