Why did GE’s Jeff Immelt join athenahealth?
There are risks and rewards for both athenahealth and former General Electric CEO Jeff Immelt in his decision to become chairman at a company much smaller than his former employer, writes Fortune’s senior editor-at-large Geoff Colvin.
The advantages for athenahealth are Immelt’s familiarity with the industry, having run GE’s healthcare operations, as well as his name recognition and connections. An RBC Capital Markets analyst said he could be “a door opener and deal closer” for his new company. For Immelt, the new role gives him a “low-key re-entry” into the business world, Colvin wrote, after his “ugly” 16-year tenure at GE that left the company considering breaking itself up.
The risk for athenahealth is Immelt’s problems at GE will now affect how perception of the company, which is already an issue after its lack of growth led an activist investor to buy a 9.2 percent stake. Immelt’s reputation could also be hurt if athenahealth’s performance isn’t improved once he comes on board.
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John joined TriMed in 2016, focusing on healthcare policy and regulation. After graduating from Columbia College Chicago, he worked at FM News Chicago and Rivet News Radio, and worked on the state government and politics beat for the Illinois Radio Network. Outside of work, you may find him adding to his never-ending graphic novel collection.