Industrial conglomerate GE is exploring the sale of its healthcare IT business, among other assets, according to an article published October 26 by Reuters.
GE has struggled and the company's stock price has declined throughout this year, with the situation coming to a head on October 20 with the report of disappointing third-quarter earnings. The report prompted CEO John Flannery to cut the company's earnings forecast and announce that it would sell more than $20 billion in assets as it moves to restructure.
Among the units on the chopping block is the company's transportation division, which generates $4.7 billion in annual revenues through the manufacturing of trains, diesel engines, and mining equipment. Reuters mentioned that healthcare IT was another potential target for divestiture, quoting anonymous sources.
GE's healthcare IT business includes electronic medical records (EMRs), healthcare workforce management, and hospital revenue cycle management, according to Reuters. The division's brands include API Healthcare and Centricity EMR.
Reuters noted that GE's healthcare IT business is part of an overall healthcare portfolio that generates $18.3 billion in revenues and includes medical imaging, medical diagnostics, and drug discovery.
