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Speaker 1: Bloomberg Audio Studios, Podcasts, Radio News. I'm here with the

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Speaker 1: CEO of GE Healthcare, Peter Rdueni. Peter, great to see

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Speaker 1: you in person.

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Speaker 2: Katie, thank you for having me on.

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Speaker 1: Let's start with the news of this morning, and that

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Speaker 1: is that GE Healthcare has signed a seven year partnership

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Speaker 1: with Sutter Health to provide aipowered medical technology and software

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Speaker 1: upgrades to the California nonprofit health system, expected to generate

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Speaker 1: a billion dollars in revenue over the life of this partnership.

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Speaker 1: Talk to us a little bit more about this particular

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Speaker 1: tie up and whether we should expect to see more

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Speaker 1: from you guys.

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Speaker 2: Yeah, no, well, thank you very much. You know, we're

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Speaker 2: super excited to work with many of our customers and partners,

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Speaker 2: but in this case with Sutter Health, as you may know,

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Speaker 2: one of the largest, really largest systems in Northern California,

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Speaker 2: but one of the top ten in this country, and

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Speaker 2: it's been a big focus of ours where we make

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Speaker 2: lots of critical equipment that's used for diagnosis, services, training,

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Speaker 2: and what we've been pivoting on is how do you

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Speaker 2: integrate all of those to do what we call deliver

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Speaker 2: precision care. And so just at this conference, you hear

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Speaker 2: about all these new devices and drugs, many of the

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Speaker 2: things that enable those we make, and so this relationship

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Speaker 2: will really refresh all of their system I think over

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Speaker 2: three hundred locales that are opening outpatient centers all over

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Speaker 2: and the exciting part is for the three and a

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Speaker 2: half four million patients that they take care of, they're

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Speaker 2: going to have state of the art equipment.

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Speaker 1: Let's talk a little bit more about the AI powered piece,

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Speaker 1: because we talk about AI from all angles, and the

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Speaker 1: question we always ask is what is the application? But

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Speaker 1: you think about medical technology, it seems like that would

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Speaker 1: be a bit of a natural fit. YEA.

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Speaker 2: Our industry is one of the industries I think that's

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Speaker 2: really grasping it in all aspects of it. But from

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Speaker 2: a ge healthcare standpoint, we kind of think about it

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Speaker 2: in three areas. The first part is kind of AI insides.

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Speaker 2: If you look at all of our products at this

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Speaker 2: point coming out, there's some embedded AI and that either

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Speaker 2: means better productivity, you can get more scans or studies done,

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Speaker 2: or it actually helps pinpoint or actually help a physician

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Speaker 2: with a diagnosis. Those are the first two second areas.

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Speaker 2: In like a departmental do you think about labor and

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Speaker 2: delivery department or radiology, how do you run it more effectively?

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Speaker 2: In that case, it's about moving data for the right decisions.

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Speaker 2: And then Enterprise, we actually have a product called Command

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Speaker 2: Center which actually helps an institution manage the flow of patients.

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Speaker 2: And I think this is again just the beginning of

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Speaker 2: where this is happening, and this will be part of

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Speaker 2: our relationship with Sutter as well.

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Speaker 1: I'm curious about the impact you see on the workforce.

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Speaker 1: You know, as you know very well, there's a clinician

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Speaker 1: shortage of sorts. How do you see these AI tools

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Speaker 1: possibly changing the workforce when it comes to the health system.

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Speaker 2: Yeah, I think it's a couple. It's a great question.

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Speaker 2: I think the first part is the more you can

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Speaker 2: make these products automate many tasks that really are not

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Speaker 2: value added. That's a first step, and you know we're

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Speaker 2: doing that, other companies are doing that. That says the

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Speaker 2: precious time of the technologists or the nurse or the

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Speaker 2: caregiver can be on those critical things that only a

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Speaker 2: human really can make the difference on. I think those

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Speaker 2: are the first steps. Broadly, though, these technologies are going

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Speaker 2: to open up to other users that typically haven't used

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Speaker 2: the device because there's been too much expertise to enable

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Speaker 2: them to actually use it. And so I think this

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Speaker 2: labor shortage that we're feeling, and we play a part

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Speaker 2: of helping training and development, but the tools themselves are

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Speaker 2: going to actually make things more accessible to more users.

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Speaker 1: And I'm curious, I mean, do you think that you

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Speaker 1: think about all the different areas that you touch, of

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Speaker 1: course at GE Healthcare, from ultrasounds to imaging, ventilators, diagnostics.

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Speaker 1: Do you think that AI will ultimately touch all of

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Speaker 1: those areas, infiltrate all of those areas or are there

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Speaker 1: any certain sectors or parts of your business that you

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Speaker 1: think will always be.

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Speaker 2: Human Well, I think I think the beautiful thing about

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Speaker 2: AI relative to this combo, I think is this combination

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Speaker 2: of the human touch factor of care right it is

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Speaker 2: one to one patient clinician relationship. I think AI is

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Speaker 2: going to ultimately help free up more time.

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Speaker 1: To do that.

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Speaker 2: And so when we think about there's clearly in our

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Speaker 2: portfolio modalities as we call them, that will first be

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Speaker 2: more affected because of the nature of it, but it'll evolve.

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Speaker 2: So I mean a specific example, like I mentioned is

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Speaker 2: an MRI, the ability to actually change actually how the

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Speaker 2: product makes an image first time in so thirty forty years,

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Speaker 2: which actually makes it go significantly faster. On the other side,

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Speaker 2: all the patient monitoring in a hospital, all of that

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Speaker 2: data today really isn't used. If you can actually predict

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Speaker 2: if you're actually in a hospital ward you may need

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Speaker 2: a nurse and actually call them before you actually have

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Speaker 2: an issue, that's a significant improvement for that clinician taking

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Speaker 2: care of you, and it frees up capacity. All those

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Speaker 2: are different variations of how we think AI is going

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Speaker 2: to help change care delivery for the better.

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Speaker 1: So this is a partnership that you signed with Sutter Health.

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Speaker 1: How are you balancing partner ships versus potential M and

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Speaker 1: A because there is a lot of optimism when it

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Speaker 1: comes to merger activity. Yeah.

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Speaker 2: Look, and we just had our investor day, you know,

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Speaker 2: Katie a few months back, and we talked about M

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Speaker 2: and A is going to be a very important part.

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Speaker 2: We're excited about twenty twenty five and beyond in the

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Speaker 2: environment that we're seeing around the world. So tuck in

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Speaker 2: M and A for us makes a lot of sense.

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Speaker 2: The breath of the company we have, we have lots

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Speaker 2: of opportunities to i'd say, fill out the solution for

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Speaker 2: customers so that there's a better end to end capability.

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Speaker 2: And then on the customer side, these type of relationships,

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Speaker 2: we see more and more customers wanting to have not

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Speaker 2: a relationship of a transactive one, but a real partnership

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Speaker 2: where we're actually getting our hands dirty to help solve

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Speaker 2: some of their challenges. And you know, we've done over

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Speaker 2: one hundred and twenty of these. It's been about five

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Speaker 2: billion since we've spun out, but obviously this has a

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Speaker 2: billion dollars by itself represents you know, one of the

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Speaker 2: largest that we've ever done.

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Speaker 1: Yeah. Absolutely, since spent off, this partnership quite large. Let's

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Speaker 1: talk a little bit more about your investor day. It

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Speaker 1: was interesting you take a look at the details. It

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Speaker 1: seems like there was a lot of focus, of course,

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Speaker 1: on the pharmaceutical diagnostic segment. I know that's your fastest

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Speaker 1: growing segment segment, and a lot of focus on imaging

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Speaker 1: agents for example. How do you expect that that market

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Speaker 1: will change over the next five years or so.

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Speaker 2: Yeah, So one of the exciting things, and that's being

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Speaker 2: discussed by a lot of pharmaceutical companies here at the

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Speaker 2: conference is this evolution of radio pharmaceuticals used in therapy.

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Speaker 2: So we are a diagnostic company, not a therapy company.

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Speaker 2: But these drugs that are arising, and they basically are

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Speaker 2: a radioactive tracer that goes to a cancer cell actually

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Speaker 2: helps eliminate the cancer and doesn't hurt the good sales

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Speaker 2: around it. We have the equipment that actually helps what

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Speaker 2: clinicians would say, see what you treat, and treat what

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Speaker 2: you see. And also a host of the diagnostic agents.

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Speaker 2: One that we spoke at Investor Days actually on the

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Speaker 2: cardiology side called Ficcado, and what it's used for is

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Speaker 2: in a PET scan to do cardiac profusion and it

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Speaker 2: will replace products that have been used in older systems

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Speaker 2: with higher specificity and sensitivity, which ultimately means a better diagnosis.

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Speaker 2: And that's actually launching this March March April. So we're

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Speaker 2: super excited about Fricado and this pet cardiology market area.

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Speaker 1: And Peter, I only have time for one more question,

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Speaker 1: and I want to go to China. Of course, you

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Speaker 1: acknowledge that there's been weakness in China on your third

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Speaker 1: quarter earnings call, and that's one of the lingering questions.

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Speaker 1: I would say, over your stock that China recovery. What

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Speaker 1: is your viewpoint right now?

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Speaker 2: Yeah, Well, first of all, i'd say overall, we're optimistic

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Speaker 2: about twenty five for the whole globe. I think US

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Speaker 2: EU a lot of things China. I think my views

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Speaker 2: haven't changed from what I've said to Investor Day, which

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Speaker 2: is we're bullish on the future of China. It will

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Speaker 2: be one of the largest, if not the largest healthcare

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Speaker 2: market in the world at some point down the road.

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Speaker 2: We believe the first half is going to be a

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Speaker 2: little bit more subdued dude as stimulus and some of

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Speaker 2: the other programs they have get work through. But we're

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Speaker 2: optimistic that the second half of twenty twenty five we

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Speaker 2: start to see the recovery, and then twenty six twenty

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Speaker 2: seven beyond that it gets back to a more normative

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Speaker 2: rate of growth.

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Speaker 1: All right, Peter, that's a good place to leave it.

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Speaker 1: Really appreciate you taking the time.

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Speaker 2: Thank you.

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Speaker 1: That is Peter Arduini. He is the CEO of ge

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Speaker 1: Healthcare