IBM and the University of Pittsburgh Medical Center (UPMC) today announced that they have entered into an eight-year, $402 million agreement to address some of the biggest problems facing health care today. The on demand agreement will radically transform the ability of the health care industry to create the technology solutions necessary to address the increasingly critical issues of health care quality and cost.
This agreement has two major components. First, UPMC’s technology infrastructure will be completely re-engineered to an on demand environment that is geared to innovation, yet adaptable and flexible to meet ongoing business needs and growth.
This endeavor, valued at $352 million, builds on UPMC’s current electronic health record strategy and takes advantage of existing technology to integrate information from across all of its facilities to ensure patient information is available across its network and to assist in improved patient care throughout the system.
In addition, IBM and UPMC will invest in strategic initiatives involving the development of medical technologies and information systems to address specific patient care and public safety initiatives, in areas such as electronic patient records, biosecurity and information-based medicine. IBM and UPMC will collaborate to commercialize these solutions. The two organizations initially will jointly invest a minimum of $50 million in this initiative, with a total possible joint investment of $200 million throughout the life of the contract.
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