Leaders of two notable healthcare systems have been named to the board of directors of General Electric Co.’s healthcare division as the parent company prepares to create the group as part of a longer-term streamlining .
The healthcare group’s 10-member board will include Rodney Hochman, president and CEO of Seattle-based Catholic nonprofit Providence Health, and president and CEO of the Cleveland Clinic. , Tomislav Mihaljevic. Providence operates 52 hospitals and more than 1,000 other care sites in five western states, employing 120,000 people, while the Cleveland Clinic system includes 22 hospitals, including in London and Abu Dhabi, and is home to more than 72,000 people.
Hochman has led Providence since 2016 and before that he led its predecessor, which merged with St. Joseph Health. He also directed the Swedish Medical Center and served as chairman of the boards of the American Hospital Association and the Catholic Health Association. Mihaljevic has been at the helm of the Cleveland Clinic since 2018, when he took over from running its Abu Dhabi hospital. He has been a director of GE proper since this spring, a decision made with the upcoming spin-off in mind, and is also co-chairman of the board of directors of the US-UAE Business Council.
The separation of what will be officially called GE Healthcare Technologies Inc. into a stand-alone company is expected to be completed in January and will be followed in about a year by the spin-off of GE’s energy and power businesses, leaving the GE legacy to focus on aviation work. The GE Healthcare business in 2021 generated operating profits of $2.8 billion on revenues of nearly $17.6 billion. About half of its sales are recurring, and the business is organized into units focused on imaging, ultrasound, patient care solutions (such as monitoring and maternal and child care), and pharmaceutical diagnostics. It employs approximately 51,000 people worldwide, including approximately 7,000 in the United States and Canada.
Hochman and Mihaljevic join GE Healthcare’s Board of Directors:
• Peter Arduini, President and CEO of GE’s healthcare business since January this year and a former leader of Integra LifeScience for nearly a decade
• Larry Culp, Chairman and CEO of GE, who will be Executive Chairman and who was recently also named CEO of GE Aerospace
• Lloyd Howell Jr., Chief Financial Officer and Treasurer of consulting giant Booz Allen Hamilton Holding Co. since 2016
• Risa Lavizzo-Mourey, director of GE since 2017 and former CEO of the healthcare-focused Robert Wood Johnson Foundation from 2003 to 2017 and, until last year, longtime professor at the University of Pennsylvania
• Catherine Lesjak, former senior executive of HP Inc. who has served on the GE board since 2019
• Anne Madden, General Counsel of Honeywell International Inc. since 2017 and prior to that, the conglomerate’s Vice President of Corporate Development and Global Head of Mergers & Acquisitions
• William Stromberg, who retired last year as CEO of investment management firm T. Rowe Price Group Inc., where he had worked since 1987
• Phoebe Yang, who was Managing Director of Amazon Web Services’ Healthcare Group until last month and prior to that, was Director of Population Health Strategy at Ascension Health and Managing Director of Ascension Holdings International . She is also a director of digital health platform Doximity and CommonSpirit Health and served on the board of what is now Providence.
Following the spin-off expected in January, GE will retain 19.9% of GE Healthcare. GE shares (symbol: GE) changed hands around $69 on October 17 and have lost about 23% of their value over the past six months.