GE to merge imaging, clinical systems units, shut down Madison facility

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GE Healthcare plans to combine its two main operating units in Milwaukee as part of reorganization plans to make operations more efficient.

The reorganization is the latest effort at improving operational efficiency under the leadership of John Dineen, who in July became CEO of GE Healthcare, reported The Business Journal of Milwaukee.

Under the reorganization, GE’s diagnostic-imaging business in Waukesha and clinical systems division in Wauwatosa will be combined and will operate as the healthcare systems division of GE Healthcare.

Omar Ishrak, who had served as president and CEO of the clinical systems unit, has been chosen to lead the healthcare systems division. Marc Vachon, president and CEO for the diagnostic-imaging unit, has been chosen to lead the Americas division for GE Healthcare. Ishrak and Vachon will continue to be based in the Milwaukee area.

The merging of the diagnostic-imaging and clinical systems businesses will not lead to additional job cuts, according to GE spokesperson Brian McKaig, reported the Business Journal.

In other actions, GE will close its GE Healthcare Lunar facility in Madison by June and consolidate functions at another GE Healthcare facility in the state’s capital city.

Lunar, an outgrowth of University of Wisconsin-Madison research, was purchased by GE in 2000 for $142 million and became GE Healthcare Lunar. The company makes machines that measure bone mineral density.

McKaig told the Business Journal that GE will move employees and production from the Lunar unit to the former Datex-Ohmeda facility in Madison now operated by GE Healthcare, as well to GE’s Tower Avenue facility in Milwaukee. GE Lunar has about 150 employees and about 700 employees at the former Datex-Ohmeda site.