General Electric Co. announced Monday morning that it would expand its healthcare consulting business with the acquisition of the Camden Group for undisclosed terms.
The El Segundo, Calif.-based firm, previously owned by dialysis giant DaVita HealthCare Partners, will now be called GE Healthcare Camden Group. It will act as the U.S. business unit of GE Healthcare Partners, the multinational conglomerate's global healthcare advisory firm.
GE declined to disclose financial details. In 2014, the Camden Group ranked 20th on Modern Healthcare's list of the 25 largest healthcare management firms, with 350 contracts and $34.2 million in revenue. It tied with Chicago-based McGladrey.
“This blending of capabilities, experience, and resources creates a unique offering for the healthcare industry,” said Laura Jacobs, an executive vice president for GE Healthcare Camden Group, in a statement. “We are excited to join the GE Healthcare family and provide our clients access to the analytics, change management and activation resources that will support the organizational and clinical changes required to be successful in healthcare now and into the future.”
The combined consultancy, according to a news release, will be capable of delivering strategic and financial consulting, as well as services targeting population health management, value-based care, clinical integration and care redesign. The combination of the two companies will better prepare GE Healthcare Partners to work in the U.S. non-acute care space, said Helen Stewart, managing principal of GE Healthcare Partners and an acting executive vice president of GE Healthcare Camden Group.
“I think it was a combination of the capabilities they have and the experience they have, and some thought leaders who are very strong, particularly in population health and clinical integration,” Stewart said, noting that most of GE's previous consulting work in the U.S. has surrounded health systems and hospitals.
GE Healthcare, based in the United Kingdom, reported $18.3 billion in revenue in 2014 and $3 billion in profit, representing 12% of the healthcare segment revenue for the year. Medical equipment, including diagnostic imaging and clinical systems, represents more than 70% of the segment.
Stewart estimated that GE Healthcare Camden Group will serve over 500 contracts, while Camden Group reported about 350 in 2014. GE Healthcare Camden Group isn't involved in consulting or sales surrounding GE medical equipment, but Stewart said the expansion of GE's healthcare consulting services goes hand in hand with the company's ongoing mission to ensure its products help clients reach their goals for patient outcomes.
The healthcare consulting industry has seen several major deals this year, including Chicago-based Huron Consulting Group's acquisition of Studer Group in January and healthcare analytics firm Inovalon's acquisition of Avalere Health in August. Just last week, Pamplona Capital Management bought MedAssets, an Alpharetta, Ga.-based group purchasing and performance improvement company and immediately sold its GPO and consulting business segment to Irving, Texas-based VHA-UHC Alliance.
Huron Healthcare ranked fourth on the Top 25 list released in August, while MedAssets' consultancy ranked eighth.