Ochsner's challenge

• Tweet
• 

Reliable, up-to-date diagnostic equipment is essential to providing the effective care that patients have come to expect from Ochsner. While continuing advances in medical imaging technology provide medical professionals with clearer images and better diagnostic tools, keeping up with the pace of technological innovation can be a financial burden. As Ochsner has grown from one hospital to eight over the past five years, it has had to balance its technology and equipment needs with the growing amount of working capital required to cover payroll and other operating costs.

GE Capital understands our business and values our partnership. They provide the financial flexibility we need to serve our growing patient communities.

–Scott Posecai
Executive Vice President and CFO, Ochsner Health System

GE Capital's strategy

In 2000, Ochsner turned to GE Capital Equipment Finance to help manage their technology through fair market value lease structures. Ochsner had worked with GE Healthcare, and knew GE was a trustworthy partner with a deep understanding of medical imaging technology. GE Capital helped Ochsner to lease the MRI, CT, Cath lab and Patient Monitoring equipment it needs at competitive rates, while retaining the flexibility to upgrade equipment mid-lease or purchase the equipment at the end of the term. Today, Ochsner continues to lease much of its medical equipment through GE Capital.

Nate Allen, GE Capital Relationship Manager has been working with Ochsner for over 7 years. Nate lives in New Orleans, where he meets with Ochsner’s finance team regularly. This close relationship helps Nate to understand Ochsner’s equipment needs and come up with customized solutions. When Ochsner wanted to switch to low-dose CT equipment, for example, GE was able to upgrade the equipment in the field, mid-lease. Ochsner got the latest in medical imaging technology quickly, and was able to provide clearer images with less radiation for patients, without significant downtime to replace equipment.

The results

Through its relationship with GE Capital, Ochsner has been able to free up working capital, and keep up with the latest medical technologies. Ochsner has expanded from one hospital to an interconnected system of eight, increasing Louisiana’s access to healthcare while keeping a consistently high quality of care and ranking in the top five percent in quality indicators in the U.S.