Microsoft, GE Announce a ‘Caradigm’ Shift in Healthcare

Microsoft, GE Announce a ‘Caradigm’ Shift in Healthcare

REDMOND, Wash., and BARRINGTON, Ill.— Feb. 13, 2012 — General Electric Co. (GE), through its healthcare IT business, and Microsoft Corp. today announced several developments for their planned 50-50 joint venture, including the intention to demonstrate future product capabilities at HIMSS12, the year’s largest healthcare IT trade show, later this month. The new company, to be named Caradigm™, is expected to launch in the first half of 2012, pending regulatory approvals and customary closing conditions.

Caradigm will be aimed at driving a paradigm shift in the delivery of care by enabling health systems and professionals to use real-time, systemwide intelligence to improve healthcare quality and the patient experience. Upon formation, the new company will develop and market an open, interoperable technology platform and collaborative clinical applications focused on enabling better population health management to improve outcomes and the economics of health and wellness.

Microsoft and GE Healthcare are also announcing several Caradigm leaders who will serve under CEO-designate Michael Simpson once the new company is formed. Named leaders are the following:

Chief Medical Officer and Senior Vice President, Product Strategy: Dr. Brandon Savage, currently chief medical officer, GE Healthcare IT

Chief Technology Officer and Senior Vice President, Engineering: Neal Singh, currently general manager of Microsoft Dynamics AX Global Financial Management

Chief Operating Officer: Nigel Mason, currently director, GE Healthcare Commercial Centre of Excellence

Chief People Officer: Tami Lamp, currently senior HR director, Microsoft

General Counsel and Vice President: Warren Ratliff, currently chief counsel, GE Healthcare IT Knowledge & Connectivity Solutions

Caradigm’s board of directors will include executives from GE Healthcare and Microsoft:

John Dineen, president and CEO, GE Healthcare

Jan de Witte, president and CEO, GE Healthcare IT and Performance Solutions

Kirill Tatarinov, president, Microsoft Business Solutions Division

Amy Hood, corporate vice president and CFO, Microsoft Business Division

“We have an exciting opportunity to transform healthcare globally with an established open platform and a new generation of applications focused on population health,” Simpson said. “Around the world, delivery system reforms and payment model changes are requiring healthcare providers to integrate data across silos of care delivery to enable better care coordination and performance improvement. We’re founding Caradigm to meet the changing needs of health and healthcare across the globe.”

The two parent companies bring complementary expertise to this new venture and will contribute intellectual property, including the following:

Microsoft Amalga, an enterprise health intelligence platform

Microsoft Vergence, a single sign-on and context management solution

Microsoft expreSSO, an enterprise single sign-on solution

GE Healthcare eHealth, a Health Information Exchange

GE Healthcare Qualibria, a clinical knowledge application environment being developed in cooperation with Intermountain Healthcare (Salt Lake City) and the Mayo Clinic

GE Healthcare and Microsoft intend to demonstrate future product capabilities that will be available from Caradigm at this month’s HIMSS12 conference in Las Vegas. Demonstrations are being scheduled in both the GE Healthcare (No. 2635) and Microsoft (No. 1629) booths. In addition, Caradigm’s future leadership team will host media and analysts on Tuesday, Feb. 21, from 6–7:30 p.m. in Room 101, Sands Expo Convention Center.

About GE Healthcare

GE Healthcare provides transformational medical technologies and services that are shaping a new age of patient care. Our broad expertise in medical imaging and information technologies, medical diagnostics, patient monitoring systems, drug discovery, biopharmaceutical manufacturing technologies, performance improvement and performance solutions services help our customers to deliver better care to more people around the world at a lower cost. In addition, we partner with healthcare leaders, striving to leverage the global policy change necessary to implement a successful shift to sustainable healthcare systems.

Our “healthymagination” vision for the future invites the world to join us on our journey as we continuously develop innovations focused on reducing costs, increasing access and improving quality around the world. Headquartered in the United Kingdom, GE Healthcare is a unit of General Electric Company. Worldwide, GE Healthcare employees are committed to serving healthcare professionals and their patients in more than 100 countries. For more information about GE Healthcare, visit our website at www.gehealthcare.com.

About Microsoft in Health

Microsoft is committed to improving health around the world through software innovation. Over the past 16 years, Microsoft has steadily increased its investments in health, with a focus on addressing the challenges of health providers, health and social services organizations, payers, consumers and life sciences companies worldwide. Microsoft closely collaborates with a broad ecosystem of partners and develops its own powerful health solutions, such as Microsoft Amalga and Microsoft HealthVault. Together, Microsoft and its industry partners are working to deliver health solutions that enable better health outcomes for more people.

About Microsoft

Founded in 1975, Microsoft (Nasdaq “MSFT”) is the worldwide leader in software, services and solutions that help people and businesses realize their full potential.

For GE’s latest news, please visit http://newsroom.gehealthcare.com. Follow GE on Twitter @GEHealthcareIT.

Forward-Looking Statements

This press release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended and such forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such statements are subject to risks and uncertainties that could cause future results to differ materially from the forward-looking statements. You should consider these factors in evaluating the statements herein, and not rely on such statements. The forward-looking statements in this release are made as of the date hereof and we undertakes no obligation to update such statements.

Microsoft (MSFT) and General Electric (GE) have begun finalizing the details for their healthcare IT joint venture called Caradigm. The venture is “aimed at driving a paradigm shift in the delivery of care by enabling health systems and professionals to use real-time, systemwide intelligence to improve healthcare quality and the patient experience.” Originally announced in December, the new company will begin operations in the first half of this year.

Healthcare IT has become a buzzword over the last few years as the industry looks to improve patient results and reduce costs. The government, through the Office of the National Coordinator for Health Information Technology, has been a big driver behind the push. As a part of the American Recovery and Reinvestment Act (2009 stimulus package), grants of up to $63,750 are available for the implementation of electronic record systems.

By combining forces the two companies hope to “combine Microsoft’s deep expertise in building platforms and ecosystems with GE Healthcare’s experience in clinical and administrative workflow solutions.” Each company is contributing its own intellectual property to the venture with Microsoft’s healthcare division providing Microsoft Amalga, an enterprise health intelligence platform, Microsoft Vergence, a single sign-on and context management solution and Microsoft expreSSO, an enterprise single sign-on solution. GE Healthcare will provide its eHealth and Qualibria products. In addition to the joint venture, both companies will continue to sell their own independent healthcare solutions.

One major thing to note is the apparent commitment to keeping the jointly developed platform open source. While existing GE and Microsoft products will be fully integrated with the new platform and the joint venture will continue to develop new applications, the platform will also allow “healthcare providers and independent software vendors the ability to develop a new generation of clinical applications.” This should reassure healthcare providers that the best technologies will be available for use no matter who makes them. It may also be a positive for developers who will now have one IT framework to develop around.

For Microsoft and GE it takes a lot to move the needle on revenues, but this new venture could easily provide a penny or two in additional EPS by 2013. While Microsoft does not break out their healthcare segment, according to Nate McLemore, the general manager of Microsoft’s Health Solutions Group, it is one of the company’s fastest growing segments with over 160,000 customers worldwide. And the potential for growth is enormous as more healthcare providers implement and expand their use of technology. Microsoft and GE will be showcasing their new venture and its platform at the Healthcare Information and Management Systems Society (HIMSS) conference February 20-24th.

For potentially more lucrative second derivative plays off this venture look for other healthcare IT developers who will be able to piggyback on the new platform, especially companies that have an existing relationship with either Microsoft or GE. Many of these companies are privately held, but some are publicly traded, including Perficient Technologies (PRFT) and Computer Sciences Corporation (CSC).

Healthcare IT will continue to be on the minds of healthcare providers, hospital executives, insurance companies, and the government as everyone looks for ways to deliver higher quality care at a lower cost. Someday soon every doctor will carry a tablet instead of a pad of paper. He or she will be able to pull up records from every doctor you have ever been to, your latest test results complete with notes from an offsite specialist, even heart rate information your watch collected, use it all to make a diagnosis, then electronically send a prescription to your pharmacist and send you on your way, automatically billing your insurance. This venture positions Microsoft and GE to be the ones to make that happen.

One of the biggest startups in the Seattle area announced it’s new name — Caradigm — but didn’t mention the backstory.

Caradigm was chosen by Microsoft and GE as the name for their new digital health venture that’s starting later this year in Redmond with about 750 employees.

In a blink it will become one of the region’s largest tech companies and establish the area as an important center for health information systems.

Caradigm will develop and sell software used by health-care organizations, caregivers and patients, combining products such as Microsoft’s Amalga platform and GE’s eHealth information exchange.

There’s a little snag, though.

Another organization already makes digital health software called Caradigm and holds the Caradigm.com Web address.

Santa Barbara, Calif.-based CenCal Regional Health Authority came up with the name — a mix of “care” and “paradigm” — and trademarked it back in 2002. Caradigm.com now points to CenCal’s main site, which lists Caradigm in its index.

Caradigm was the name chosen for a health information system developed by the authority to handle eligibility, claims processing and reporting.

CenCal has been in touch with Microsoft and GE about the name, according to CenCal Chief Executive Robert Freeman.

“We’re talking to them,” he said via email. “No agreement yet, but everything’s been very cordial. I’m sure we’ll work something out.”

CenCal probably spent a lot less coming up with the name than Microsoft and GE, Freeman joked.

The organization held an internal naming contest for its new IT system. The employee who thought up the name received $50 and a pizza party.

Freeman said he guesses Microsoft and GE “spent a tad more” to come up with their venture’s name.

CenCal actually let the trademark close in October 2010, according to the U.S. Patent and Trademark Office, which shows Microsoft and GE applied for the Caradigm trademark on Jan. 24.

They first announced their new venture in December.

Microsoft spokeswoman Martha Sherman said the company is “pursuing various options for the URL” and expects to work things out in time for the new Caradigm’s debut.

What do you get when two behemoth technology companies with interests in healthcare join forces? Apparently a 750-person healthcare IT company based in Seattle, WA that, according to the press release, aims to drive “a paradigm shift in the delivery of care by enabling health systems and professionals to use real-time, systemwide intelligence to improve healthcare quality and the patient experience.”

The partnership between Microsoft and GE is called Caradigm and has the healthcare IT industry buzzing. Both companies will be contributing intellectual property to the 50-50 venture, including:

• Microsoft Amalga, an enterprise health intelligence platform

• Microsoft Vergence, a single sign-on and context management solution

• Microsoft expreSSO, an enterprise single sign-on solution

• GE Healthcare eHealth, a Health Information Exchange

• GE Healthcare Qualibria, a clinical knowledge application environment being developed in cooperation with Intermountain Healthcare (Salt Lake City) and the Mayo Clinic

Sometime in the first half of 2012, the company plans to “market an open, interoperable technology platform and collaborative clinical applications focused on enabling better population health management to improve outcomes and the economics of health and wellness.” Though not many details have been released at this point, Caradigm plans on demonstrating its capabilities at next week’s HIMSS showcase in Las Vegas.

Medgadget has covered many of Microsoft‘s and GE‘s developments in healthcare technology and looks forward to keeping you informed on the development of this new and high-profile collaboration.

Source : http://www.microsoft.com/en-us/news/press/2012/feb12/02-13HIMSPR.aspx

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