US chip giant Intel said Tuesday it has entered into an agreement with General Electric to form a 50/50 joint venture healthcare company focused on electronic health and independent living. The new company will absorb GE Healthcare’s Home Health division and Intel’s Digital Health Group, and will be owned equally by GE and Intel. It is expected to become operational by the end of the year.

Designed to address the dramatic increase of people living with chronic conditions and a global aging population, the company will develop and market products, services and technologies that promote healthy, independent living at home and in assisted living communities around the world.

“New models of care delivery are required to address some of the largest issues facing society today, including our aging population, increasing healthcare costs and a large number of people living with chronic conditions,” said Intel president and CEO Paul Otellini. “We must rethink models of care that go beyond hospital and clinic visits, to home and community-based care models that allow for prevention, early detection, behaviour change and social support.”

The company will be headquartered in California and Louis Burns, currently vice president and general manager of Intel’s Digital Health Group will be CEO of the new company, and Omar Ishrak, senior vice president of GE and president and CEO, GE Healthcare Systems, will be chairman of the board.

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