GE Healthcare: Jeff Immelt's Autobiography Reveals Why Zero Growth
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- Опубликовано: 28 авг 2021
- The Former CEO of GE Jeff Immelt Has Written a Fantastic Autobiography, "Hot Seat."
Before Becoming CEO, Immelt Was the Divisional CEO of GE Healthcare--So He Has Extensive Healthcare Experience.
GE Healthcare is the 3rd Largest Medical Device Company in the World. It Makes CT Scanners, MRI Machines, Ultrasound Scanners, Mechanical Ventilators and More.
GE Healthcare Has a Problem... It Has Had Almost Zero Growth.
In 2010, It Had Revenue of $16.9 Billion. In 2020, It Had Revenue of $18.1B... Only a 0.69% Compound Annual Growth Rate.
Conversely, the Largest Med Device Company in the World--Medtronic--Grew 7% Per Year During the Same Timeframe... ~7X+ More Than GE Healthcare.
One Possible Reason: GE Healthcare's Business Model is to Sell Machines at Cost and then Make All of their Profit on the Service Contracts for Maintenance and Repairs.
Accordingly, GE Makes More Money the More Service Their Machines Need.
Immelt Tried to Create an Initiative Called GE Digital to Improve the Efficiency and Effectiveness of GE Products (i.e. less maintenance and repairs) and the Company Essentially Rebelled Against Him.
GE Digital Was Eventually Scrapped.
The Point: GE Healthcare Completely Missed the Healthcare Innovation of the Last Decade Because It was Married to It's Old Business Model and Could Not Change.
Similarly, Many Healthcare Organizations--from Hospitals to PBMs-- Are Also Married to Their Old Business Models and Are Having a Hard Time Changing.
If You Want to Change Healthcare, Working at a Large, Established Healthcare Organization is Likely NOT the Way to Go.
Disclosure: Dr. Bricker is the Chief Medical Officer of Virtual Care Company First Stop Health. Dr. Bricker holds NO short stock positions and only holds an S&P500 Index Fund long position.
Sources: 'Hot Seat' Book by Jeff Immelt
www.bloomberg.com/news/articl...
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Great insights from this video. Those lessons learned are certainly applicable for many areas beyond the healthcare industry.
Many thanks for the time spent researching and recording these videos!
Thank you for watching and for your feedback!!
I think your analysis exponentially increases the value of Immelt's insights -- thank you!
I was wondering if you had any thoughts regarding a keen interest of mine -- cardiothoracic surgery -- and how the profession will survive the increasingly impinging interventional cardiology and interventional electrophysiology procedures.
Kind regards from Melbourne, Australia
Thank you for watching and your question.
In the US, cardiothoracic surgery patient volumes have been scaled back tremendously. Has been happening for decades.
It is likely many patients getting stented who would have done better with CABG.
@@ahealthcarez Thank you very much for your reply! I agree and I think the decline is intuitive. Would you be able to, off the top of your head, point me to some place where I can find industry analysis on specialties like these? I'm a 3rd (out of 5) Australian year medical student trying to pick a specialty. Cardiothoracics is very enticing because I have a strong itch for innovation and industry which there might be more scope for in a 'slowly dying' or 'less busy' specialty like CTS -- I.e. necessity is the mother of innovation.
I've spent all day watching your library of videos. They're fascinating and I've learned a lot!
You should have mentioned that $3B of Sales were removed from the $18B ´20 comparison because of the Biopharma sale in 2019. Because of that, your $16B ´10 vs $18B ‘20 is not an Apple-to-Apple comparison.
Thank you for sharing your perspective.
Thanks for these videos! Very concise and insightful.
Thank you for watching and for your feedback.
Great breakdown very informative 💯
Thank you for watching and for your feedback.
One your best, Doc! Watch what business model a company is married to is great advice. Common sense and seizing opportunities get railroaded! Value based care may not stand a chance in the real world.
Thank you for watching and for your kind feedback.
Since you published this video, GE has announced the spin-off of GE Healthcare. Do you think they have a better chance of evolving now that they will be a standalone entity?
Great question. Yes!
Enlightening for sure!
Thank you for watching and for your comment.
Great video. I would not hire Jeff Immelt to run my neighborhood. Dunkin’ Donuts shop. What a horrible manager.
Thank you for watching and sharing your perspective.
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