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Tuesday, December 2, 2008

GE Sets Deal for Clinics With Partner

University of Pittsburgh Medical Center said it would open at least 25 cancer clinics in Europe, Asia and the Middle East in the next decade, with help from General Electric Co.

The move is a new twist on the international push by top U.S. health-care organizations like the Cleveland Clinic and Johns Hopkins, as well as a way for UPMC and GE to boost their brands in new markets.

Cancer care "is a growing market, growing at a very fast pace," said Reinaldo Garcia, the international head of GE Healthcare. The partners say there are an estimated 10 million new cancer cases a year globally, affecting both developed and developing countries.

UPMC said it would buy scanning and imaging equipment exclusively from GE. That could include ultrasound machines and computed tomography, or CT, scanners. The partners didn't disclose the potential value of the deal to GE. GE Healthcare is experiencing tough competition and declining reimbursement rates in North America.

Rapidly growing UPMC has acquired health-care systems in western Pennsylvania, where it has become the largest employer and has built a specialty in cancer care. The nonprofit system generated $7 billion in revenue last year, but executives say they are saturating the local market and looking to expand. with the epansion GE may need Patient Room Casework and Medical Casework.

UPMC opened cancer clinics in Ireland in 2006 and 2007; in February, it said it would buy a 25% stake in and manage Dublin's 183-bed Beacon Hospital. It also manages a transplant center in Palermo, Italy, and emergency medical services in Qatar.

Other big U.S. health systems also are expanding overseas, particularly in oil-rich regions such as the Mideast.

Philips Electronics NV, another big seller of medical equipment, says the global market for cancer-related medical equipment is growing at about 10% a year, with emerging markets growing at a faster rate.