Full interview reprinted from "The Gray Sheet" - July 28, 2008
While it seems like a big change, John Dineen suggests his recent move from chief exec of General Electric's locomotive and drilling equipment business to the top slot at the firm's healthcare unit is a natural transition. Find out what he has to say.
From Trains To Treatments: New GE Healthcare CEO Settles In
While it seems like a big change, John Dineen suggests his recent move from chief exec of General Electric's locomotive and drilling equipment business to the top slot at the firm's healthcare unit is a natural transition.
GE announced July 17 that Dineen, CEO of its $4.5 billion transportation subsidiary since 2005, was taking over the firm's $17 billion healthcare unit. He replaced Joseph Hogan, who left the healthcare sector to head electrical engineering firm ABB (1"The Gray Sheet" July 21, 2008, p. 17).
Within GE, "it is not unusual for people to move around businesses and industry," Dineen said.
Although the products are very different, GE management wants Dineen to accomplish the same objectives in healthcare that he attained in transportation: expand R&D, further develop markets overseas and forge close working relationships with regulators and policymakers impacting the industry.
The latter goals are intertwined for GE Healthcare, which is depending more on overseas sales as it faces significant pressure in its domestic medical imaging business from federal payment policies aimed at curbing growth of imaging services. GE Healthcare's U.S. diagnostic imaging revenue declined 6% for the three months ended June 30, compared to the same period last year, while its international imaging revenue increased 24%.
Dineen, who has been with GE for 22-years in various roles, including stints in the advanced materials, power equipment and microwave and air-conditioning industries, spoke briefly with "The Gray Sheet" July 24 to discuss his new focus on healthcare.
"The Gray Sheet": Why do you think you are a good fit for running the healthcare business?
John Dineen: [At GE,] moves are really based on a person's expertise. Not always expertise in a specific industry, but expertise in certain areas that may help the business move forward.
I think in this case the connection is I have a very strong proven operational track record helping businesses achieve higher levels of quality and customer satisfaction. I have a very strong global background. I spent a lot of time developing markets around the world. And the common thread in my experience is ... technology, investing heavily in research and development. I come from a lot of high technology businesses that are predicated on software and firmware. And in this case, I can actually draw back to my educational background, which [includes bachelor's degrees] in computer science and biological science.
TGS: The policy environment has been tough on imaging, with Medicare payment cuts and a perception that FDA expectations are increasing. Are these challenges you will be spending a lot of your time on?
Dineen: Absolutely. I have spent a lot of time with regulatory agencies during my career in other businesses and I am pretty excited about making sure that we are putting together policies that are good for the consumers, good for the industry and good for global trade. We have had a pretty good track record of working with other agencies like the [Environmental Protection Agency] in my past life, so I am looking forward to not just working on compliance, but taking a leadership role in this area.
TGS: Is there anything specific you accomplished in the transportation unit that you are looking to transfer to the healthcare unit?
Dineen: We 'tripled-down' on our focus on R&D, in bringing in new engineers and scientists and really establishing a leadership position from a product standpoint. And then we rapidly globalized the business. We took it from a business that was 10% outside of North America to a business that was almost 50% outside of North America in a short amount of time. I think those are all things that will translate well.
TGS: What goals are you focusing on in the very near term?
Dineen: We really start focus on the basics in the first couple of weeks and don't step in and make any broad changes to the strategy or the organization. And we will really make sure from a customer standpoint that we are doing the right thing [in terms of] quality. And then immediately get into the products' technologies. I come from a technical background, a science background, so I immediately get into the technologies themselves.
- David Filmore
Contents copyrighted © F-D-C Reports, Inc. 2008; protected by U.S. Copyright Law.
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