U. of Pittsburgh Med Ctr. starts $20M joint venture with GE

Though a not-for-profit organization, the University of Pittsburgh Medical Center has a portfolio of deals with technical organizations that would make many commercial organizations weep with envy. Recent partnerships include an agreement in which it invested with web-based clinical data sharing company dbMotion, an eight-year, $402 million deal with IBM to jointly develop healthcare software and systems, and a $300 million deal with Alcatel under which the two will work on first responder technology.

This week, UPMC's most recent deal is a $20 million joint venture with General Electric to launch a new imaging company. The new imaging company, to be named Omnyx LLC, will create a "virtual microscope" used to scan and store images electronically. It will be used to digitize the slides analyzed by pathologists.

Perhaps this track record of innovation justifies the CEO's drawing a record $3.95 million in total compensation for fiscal 2007, up 19.7 percent from the year before and well above the $1.2 million average for hospital systems with more than $1 billion in revenue.

To learn more about UPMC's status:
- read this Wall Street Journal blog item

Case study: UPMC partners for integration
UPMC plans rollout of drugmaker relationship limits

Suggested Articles

The profit margins and management of Community Health Group raise questions about oversight of managed care insurers.

Financial experts are warning practices about the pitfalls of promoting medical credit cards to their patients.

A proposed rule issued by HHS on Tuesday would expand short-term coverage, a move Seema Verma said will have "virtually no impact" on ACA premiums.