GE Capital, the financial services division of GE, has sold is Healthcare Equipment Finance business to TIAA Bank for $1.5 billion.
The sale comes as GE has made several recent changes to shore up its operations, including hiring a new CEO and splitting GE Healthcare into a separate, independent entity. GE Capital has sought to become smaller and more focused, according to the announcement of the deal.
TIAA Bank is a full-service, nationwide banking and lending services company based in Florida. The acquisition expands TIAA Bank’s commercial banking business.
“This transaction expands our ability to meet the complete financial needs of hospitals and universities we serve, allowing them to fund their operations, achieve strategic goals and continue to provide high-quality care to millions of Americans,” Lori Dickerson Fouché, senior executive vice president and CEO of Retail & Institutional Financial Services at TIAA, said in a statement.
The healthcare portfolio TIAA Bank acquired includes loans and leases to approximately 1,100 hospitals and 3,600 physician practices and diagnostic and imaging centers across the United States. The financed assets include imaging, monitoring, respiratory, surgical, ultrasound and lab equipment.
“This agreement with GE Capital supports our long-term asset growth plan and provides scale and portfolio diversification while significantly expanding our ongoing relationship with GE, a top-tier healthcare equipment manufacturer,” Blake Wilson, CEO of TIAA’s Retail Financial Services and chairman and CEO of TIAA Bank, said in a statement. “The healthcare industry is dynamic and ever-changing, and the need for new healthcare equipment continues to grow at a rapid pace. This deal will allow TIAA Bank and GE’s healthcare finance business to continue to help clients with their financing needs for years to come.”
Amy joined TriMed Media as a Senior Writer for HealthExec after covering home care for three years. When not writing about all things healthcare, she fulfills her lifelong dream of becoming a pirate by sailing in regattas and enjoying rum. Fun fact: she sailed 333 miles across Lake Michigan in the Chicago Yacht Club "Race to Mackinac."