TIAA Bank acquires $1.5bn healthcare equipment financing portfolio from GE Capital

By Catherine Sturman
Share
TIAA Bank has announced its plans to acquire the $1.5bn portfolio of healthcare equipment leases and loans from GE Capital’s Healthcare Equipment Fina...

TIAA Bank has announced its plans to acquire the $1.5bn portfolio of healthcare equipment leases and loans from GE Capital’s Healthcare Equipment Finance (HEF) business. It will significantly expand TIAA Bank’s commercial banking business and enhance its ability to provide a full range of financial solutions to institutional clients and serve an even greater number of healthcare providers.

The sale comes as GE Capital seeks to become smaller and more focused. The parties have entered into a five-year vendor financing agreement for US customers of GE Healthcare.

GE Healthcare Equipment Finance’s leadership, infrastructure and salesforce will be integrated into GE Healthcare in 2019 and the team will continue to originate and service transactions under a co-branding arrangement with TIAA Bank.

The acquired healthcare portfolio includes loans and leases to approximately 1,100 hospitals as well as 3,600 physician practices and diagnostic and imaging centres across the US. Assets financed include imaging, monitoring, respiratory, surgical, ultrasound and lab equipment.

“TIAA is dedicated to delivering financial solutions to institutional clients, including those in the healthcare industry,” said Lori Dickerson Fouché, Senior Executive Vice President and CEO of Retail & Institutional Financial Services at TIAA.

See also

“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.”

“This agreement with GE Capital supports our long-term asset growth plan and provides scale and portfolio diversification while significantly expanding our on-going relationship with GE, a top-tier healthcare equipment manufacturer,” commented Blake Wilson, CEO of TIAA’s Retail Financial Services and chairman and CEO of TIAA Bank.

“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.”

“This is an excellent outcome for GE Capital, GE Healthcare and its customers,” added Trevor Schauenberg, President and CEO of GE Capital Industrial Finance. “TIAA Bank is a well-known, highly respected institution and we look forward to working with its outstanding team, ensuring a strong foundation for the future and seamless continuity of service for our US customers. With this portfolio sale and financing alliance, we are expanding our funding capability and improving our competitive offerings for our customers.”

TIAA Bank offers a wide range of commercial banking solutions to its clients, including business banking, term loans, lines of credit, real estate and equipment financing. The addition of this portfolio will enable TIAA to provide an even more comprehensive range of services to this strategic growth market.

Share

Featured Articles

How Huawei's Digital Solutions are Transforming Healthcare

Offering network, cloud, and AI solutions, Huawei is able to help healthcare providers deliver better outcomes for patients

2024 Nestlé Nutrition Symposium Explored Food & Health

Nestlé manufactures 4.5m KitKats every day, but the food giant is also focused on advancing food nutrition, as explored at the 2024 International Symposium

Thirona’s AI Tech is Creating Individualised Patient Care

Eva van Rikxoort, CEO and Founder of Thirona, tells us how AI technology is advancing lung imaging and bringing more individualised treatment to patients

AstraZeneca’s Discovery Centre, Constructed by Mace Group

Technology & AI

NeoGenomics: Data in Oncology Testing & Diagnostics

AI & ML

Samsung’s New Health Software Development Kit Suite

Digital Healthcare