GE HealthCare Announces Changes in Strategic Leadership and Key Segments to Better Serve Patients and Customers

Rhea-AI Summary

GE HealthCare (Nasdaq: GEHC) has announced key leadership changes and the realignment of its Imaging and Ultrasound segments. Roland Rott will become the president and CEO of Imaging, while Phil Rackliffe will lead Ultrasound and Image Guided Therapies (IGT). This restructuring, effective July 1, 2024, aims to enhance patient care and business performance. IGT, a $1.6 billion subsegment of Imaging, will merge with Ultrasound in Q3 2024, creating a $5.0 billion global business. Imaging, GE HealthCare’s largest segment, will focus on surgical and interventional procedures, generating over $8.9 billion in annual revenue. The new leadership is expected to drive innovation and growth, leveraging their extensive experience in healthcare and technology.

Positive

• Leadership changes effective July 1, 2024, to enhance focus and performance.
• IGT merging with Ultrasound to form a $5.0 billion global business by Q3 2024.
• Imaging remains the largest segment with $8.9 billion in annual revenue.
• New leaders have extensive experience in healthcare innovation and technology.
• Roland Rott has a strong track record of leading M&A activities and driving digital and AI product innovation.
• Phil Rackliffe has delivered significant revenue growth and led strategic R&D expansions.

Negative

• Restructuring may lead to initial operational challenges and transition costs.
• Potential impact on revenue reporting due to realignment of segments.
• Leadership changes might cause short-term instability within teams.

• Roland Rott, the current president and CEO of Ultrasound, will lead Imaging, replacing Jan Makela
• Philip Rackliffe, the current president and CEO of Image Guided Therapies (IGT), will lead Ultrasound and IGT

CHICAGO--(BUSINESS WIRE)-- GE HealthCare (Nasdaq: GEHC) announced today that it has named Roland Rott president and CEO of Imaging and Phil Rackliffe president and CEO of Ultrasound and IGT. Both leaders bring to their roles decades of deep experience in healthcare innovation and experience leading global teams in businesses of scale. This also highlights the depth of internal talent that GE HealthCare is building to strengthen focus on delivering for patients and customers. These changes will be effective July 1, 2024.

IGT, a $1.6 billion subsegment of Imaging, will be combined with the Ultrasound segment in the third quarter of 2024, to form a global business with more than $5.0 billion in annual revenue.ⁱ GE HealthCare is aligning IGT with Ultrasound to better match its clinical usage and realize stronger business and customer impact by providing the right image guidance in the right care setting. Aligning IGT and Ultrasound positions GE HealthCare to be more agile and address future imaging needs using these real-time modalities in both inpatient and outpatient settings.

Without IGT, Imaging will remain GE HealthCare’s largest segment with more than $8.9 billion in annual revenue.ⁱⁱ This segment will enhance focus on solutions centered on surgical and interventional procedures, particularly interventional cardiology and structural heart, while continuing Ultrasound’s diagnostic leadership.

Peter Arduini, chief executive officer of GE HealthCare, said, “Roland and Phil will bring fresh viewpoints, global perspective, and deep industry expertise to our Imaging segment and new Ultrasound and IGT segment. Elevating leaders who have a deep understanding of our customers’ needs, market trends, and our strategic focus will help enable us to accelerate innovation and growth. Roland and Phil are proven leaders who are well positioned to take on these new opportunities, drive our precision care strategy, and deliver for patients and customers.”

Roland joined GE Healthcare in 2011 and has held multiple leadership roles within Ultrasound, ultimately becoming president and CEO in 2021. He has a strong track record of growing healthcare businesses at scale, and driving digital and artificial intelligence (AI) in product innovation. He has been instrumental in leading M&A activities including the BK Medical and Caption Health acquisitions, and established strategic alliances with new partners, such as the Bill & Melinda Gates Foundation and BARDA and Novo Nordisk. He has delivered significant platforming results in Ultrasound including the recently launched LOGIQ E10 Series and LOGIQ Fortis and Voluson Signature ultrasound systems, and will drive similar platforming efforts in Imaging. Before joining GE HealthCare, Roland worked as an executive committee member at a publicly traded company and founded two software companies that were acquired by strategic investors.

Phil joined GE HealthCare in 2022 to lead IGT and has delivered significant accretive revenue growth for the business during his tenure. Since joining GE HealthCare, Phil has led R&D expansion related to new product introductions including Allia Pulse, 3DStent, EmboAssist AI and OmnifyXR. He has also led strategic equity investments focused on improving visualization and surgical navigation techniques using technology such as augmented reality during minimally invasive procedures. He has over two decades of global experience in MedTech, Medical Devices and Pharmaceuticals working for public companies, including Baxter Healthcare, Boston Scientific, and Pfizer, as well as Ernst and Young. Phil’s last role before joining GE HealthCare was CEO of Centerline Biomedical, a spinout of Cleveland Clinic.

GE HealthCare expects to provide recast financial results to reflect the movement of IGT from Imaging to the new Ultrasound and IGT segment in its filings with the U.S. Securities and Exchange Commission for third quarter 2024.

About GE HealthCare Technologies Inc.
GE HealthCare is a leading global medical technology, pharmaceutical diagnostics, and digital solutions innovator, dedicated to providing integrated solutions, services, and data analytics to make hospitals more efficient, clinicians more effective, therapies more precise, and patients healthier and happier. Serving patients and providers for more than 125 years, GE HealthCare is advancing personalized, connected, and compassionate care, while simplifying the patient’s journey across the care pathway. Together our Imaging, Ultrasound, Patient Care Solutions, and Pharmaceutical Diagnostics businesses help improve patient care from diagnosis, to therapy, to monitoring. We are a $19.6 billion business with approximately 51,000 colleagues working to create a world where healthcare has no limits.

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i	All stated revenues for IGT, Ultrasound and Imaging are 2023 figures.
ii	All stated revenues for IGT, Ultrasound and Imaging are 2023 figures.

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20240610228657/en/

Investor Relations Contact:

Carolynne Borders

+1-631-662-4317

carolynne.borders@gehealthcare.com

Media Relations Contact:

Jennifer Fox

+1 414 530 3027

Jennifer.r.fox@gehealthcare.com

Source: GE HealthCare

FAQ

What changes did GE HealthCare announce in its leadership?

GE HealthCare announced that Roland Rott will become president and CEO of Imaging, and Phil Rackliffe will lead Ultrasound and Image Guided Therapies.

When will the leadership changes at GE HealthCare take effect?

The leadership changes will take effect on July 1, 2024.

What is the annual revenue of the new Ultrasound and IGT segment?

The new Ultrasound and IGT segment is expected to generate more than $5.0 billion in annual revenue.

How much revenue does GE HealthCare's Imaging segment generate?

GE HealthCare's Imaging segment generates over $8.9 billion in annual revenue.

Why is GE HealthCare merging IGT with Ultrasound?

GE HealthCare is merging IGT with Ultrasound to better align with clinical usage and enhance business and customer impact.

What experience does Roland Rott bring to his new role?

Roland Rott has extensive experience in healthcare innovation, leading M&A activities, and driving digital and AI product innovation.

What strategic initiatives has Phil Rackliffe led at GE HealthCare?

Phil Rackliffe has led significant R&D expansions and strategic equity investments focused on improving visualization and surgical navigation techniques.