GE Healthcare and Temple University Health System have announced a seven-year collaboration that will focus on promoting high-quality, efficient imaging services at a lower cost.

The goal of this new arrangement is to save a total of $39 million by targeting changes in the health system’s “operational, clinical and financial outcomes.” GE will upgrade the radiology departments at Temple University Hospital’s main, episcopal and northeastern campuses, Jeanes Hospital, and the Fox Chase Cancer Center, installing its most up-to-date technologies and providing consultation services.

In addition, financial incentives have been put in place to ensure the two parties are working together.

“Like many health systems throughout the country, Temple University Health System faces clinical, operational and financial demands,” Jeffrey Immelt, chairman and CEO of GE, said in a statement. “GE Healthcare understands these market challenges, and we are dedicated to helping customers deliver the best outcomes in today’s environment. GE is honored to work with Temple University Health System in this strategic alliance designed to improve operational and clinical outcomes while reducing costs by $39 million.”

Larry R. Kaiser, MD, president/CEO and dean of Temple’s healthcare enterprise, sees this agreement as an important moment for value-based healthcare.

“Our collaboration with GE Healthcare provides Temple physicians and patients with access to the latest imaging technology while reducing its costs by millions of dollars, improving patient convenience and safety, enhancing clinical quality, increasing hospital efficiency, and promoting the Triple Aim of better care and better health at lower cost,” Kaiser said in a statement.