Over three years after initially unveiling plans to spin off GE HealthCare as a standalone company, parent company General Electric Co. announced this week a new timeline for the separation. GE HealthCare will now become its own company within the first week of January 2023, pending final approval from the GE board of directors.
“As we seek to lead the new era of precise, connected, and compassionate care, GE HealthCare will begin its life as an independent company with a best-in-class board and team,” said Peter Arduini, CEO of GE HealthCare. “The group we are assembling brings a strong understanding of the safety, quality, innovation, and trust that our customers expect from GE, as well as fresh thinking for our journey forward. We’re excited to launch GE HealthCare in January as a standalone company leading precision health innovation.”
A GE HealthCare spokesperson declined to comment on how the spinoff will affect local GE facilities, including those in Waukesha, Milwaukee and Madison, but did say Wisconsin is an “important hub” for the company.
As previously announced, H. Lawrence Culp, Jr., chairman and CEO of GE and CEO of GE Aerospace, will serve as non-executive chairman of GE HealthCare. Arduini will also serve as a director.
GE HealthCare also announced the remaining eight directors who will join the company’s Board. They include Dr. Rodney Hochman, president and CEO of Providence; Lloyd Howell, Jr., CFO and treasurer of Booz Allen Hamilton Holding Company; Dr. Risa Lavizzo-Mourey, an independent director for GE; Catherine Lesjak, past chief operating officer at HP Inc.; Anne Madden, senior vice president and general counsel at Honeywell; Dr. Tomislav Mihaljevic, CEO and president of Cleveland Clinic; William Stromberg, director of the T. Rowe Price Group, Inc.; and Phoebe Yang, independent director at Doximity.
“With this initial group of directors, we have a highly qualified and capable board that will enable GE HealthCare to hit the ground running,” said Culp. “The team is building significant momentum and targeting a spin-off during the first week of January and having our board in place represents a critical milestone on this path.”