Danville, Pa.-based Geisinger has struck a 10-year partnership with Siemens Healthineers, largely focused around diagnostic imaging, the organizations announced Monday.
Under the agreement, the German medical technology company will provide Geisinger with diagnostic imaging equipment, as well as related artificial intelligence applications and digital health tools.
Siemens Healthineers will also make on-site staff, education and workflow resources available to Geisinger to support digital technology improvements.
“This partnership will allow us to continue to equip our facilities with the most advanced diagnostic imaging technology in the market to care for our patients,” Matthew Walsh, Geisinger’s chief operating officer, said in a statement.
Geisinger and Siemens Healthineers did not disclose financial details of the transaction.
The 10-year agreement is one of Siemens Healthineers’ largest “value partnerships” in North America, according to David Pacitti, the company’s president of the Americas. Value partnerships are what Siemens Healthineers calls its performance-oriented agreements with providers, which include co-creating tools, consulting and technology management services.
The diagnostic imaging technology market is difficult to quantify given how expansive it is, Srikanth Kompalli, program manager for medical imaging at market research firm Frost & Sullivan, told Modern Healthcare in October. GE Healthcare, Philips and Siemens Healthineers lead the market as a whole, but there are other competitors to consider within specific equipment segments.
“There’s eight to nine modalities, put together, that define your diagnostic imaging industry,” Kompalli said at the time, noting ultrasound, X-ray and MRI machines as examples.
Siemens Healthineers reported $4.05 billion in revenue for 2020’s first quarter, up 8.7% year-over-year and comprising 17.7% of Siemens’ total $22.96 billion in revenue.
Geisinger reported operating income of $183.9 million on revenue of $6.54 billion in 2018, according to financial statements released in June 2019. That’s up from $159.8 million of operating income on $6 billion of revenue in 2017.