KALEIDA HEALTH FORMS INNOVATIVE STRATEGIC ALLIANCE WITH
Buffalo's Leading Health System Obtains Financing, State-of-the-Art Equipment and 2003 Chicago, Buffalo, N.Y. and Waukesha, Wis., October 30, 2003 - GE Healthcare Financial Services and GE Medical Systems, units of General Electric Company (NYSE: GE), have forged a groundbreaking, strategic alliance with Kaleida Health, the largest health system serving western New York. As part of the long-term agreement, Kaleida will receive $67 million in financing, select access to twice-yearly previews of cutting-edge healthcare technology from GE Medical Systems and counsel from GE's clinical and Six Sigma quality experts on performance improvement opportunities in departments ranging from radiology to purchasing. "GE Healthcare Financial Services and GE Medical Systems have demonstrated a deep understanding of Kaleida's commitment to quality and excellence," said William D. McGuire, president and chief executive officer of Kaleida Health. "Working together, we have created a strategic alliance that fully supports our goal of becoming the preferred healthcare partner for patients and physicians in western New York." GE's innovative financing package proposal for the health system includes a $20 million line of credit, a $27 million tax-exempt 25-year loan and a $20 million tax-exempt five-year equipment loan. Kaleida will use the financing to accomplish a major renovation and expansion of its Millard Fillmore Suburban Hospital as well as to invest in new equipment for its organization, including a GE Medical Systems' Picture Archive and Communications System (PACS). The PACS technology will enable Kaleida clinicians to access patient images from workstations positioned throughout the health system and eliminate the storage of patient films, which can be difficult to rapidly retrieve. "Our industry expertise and financial reach enabled us to design financing and other solutions to suit Kaleida's specific needs and objectives. Our goal is to develop similar collaborations with other industry leaders," said Rick Wolfert, president and CEO of GE Healthcare Financial Services. "Our partnership with Kaleida is the largest single success for our strategic relationship group, which was formed in early 2003 to pursue strategic alliances with the top 200 hospital systems in the United States." "With this alliance, GE Medical Systems was able to replace Kaleida's long-time preferred equipment supplier and provide value above and beyond the equipment," noted Paul Mirabella, president and CEO of GE Medical Systems Healthcare Services. "This is one of the best examples of how GE is working to serve the needs of the overall healthcare industry. By working together, GE and Kaleida will develop and demonstrate new processes to maximize the efficiency and return on invested capital from new equipment." "The combination of GE's extensive healthcare solutions, technology, financial strength, and expertise reaffirmed that the Company was the right partner to take Kaleida to new levels of performance and success," said Robert Glenning, executive vice president and chief financial officer of Kaleida Health. Final closing on this debt obligation is subject to approval by the Department of Housing and Urban Development.
About GE Healthcare Financial Services
About GE Medical Systems
About Kaleida Health Kaleida Health serves as the major teaching affiliate of the State University of New York at Buffalo School of Medicine and Biomedical Sciences and Dental Medicine. The Kaleida hospitals are Buffalo General, the Women & Children's Hospital of Buffalo (WCHOB), DeGraff Memorial, and Millard Fillmore Gates and Suburban Hospitals. The WCHOB is the New York State designated regional perinatal center. Media Contacts:
# # # |
