GE Healthcare in India

Sales of Ultrasound

Scanners in India

What is an Ultrasound?

1994: Pre-natal Diagnostic Technique (PNDT) Act

Detection of fetal defects or complications during child birth; diagnosis of gallbladder disease; evaluation of blood flow in blood vessels; identifying abnormal structures in the heart; detecting kidney stones and prostate cancer early

Indian Sex Ratio

Statistics

Banned the use of technology for prenatal sex determination for the purpose of sex-selective abortions

Problem: Ultrasounds can be used for prenatal gender

determination

• Illegal to sell ultrasounds to unqualified practitioners
• Manufacturers must provide details of recent ultrasound buyers
• Doctors must fill out “F form” to specify the reason for the ultrasound, if the woman had previously had children, and a signed statement assuring that the doctor and patient aren’t interested in learning the sex of the child
• The Act was ineffective because it was not enforced on the doctors

Wipro Corporation & GE Healthcare

GE's Response

• Wipro: India’s 3rd largest software provider
• Utilized distribution networks to deliver products to approximately 80% of customers
• “largest medical systems sales and service provider” in India

• educated salespeople
• required affidavits from its customers
• conducted frequent audits

Dilemma: In 2007, global headquarters set a high growth rate for GE India at 20%

Result: In 2004, sales shrunk by 10%, but by 2006,

sales rebounded

Sample Comparison Healthcare Statistics

India

United States

Lessons Learned by GE

Population

290 million

1,200 million

$5,670

$28

Healthcare spending

(per capita)

Respecting Human Rights through Outward Looking

Educational Campaigns and Promotion of Standard Practices

Work with Government and Promote Standard Industry Practices.

Raise Public Awareness of Human Rights.

Discussion Questions

15.3%

5.1%

Healthcare spending

(% of GDP)

Where should we place the blame?

The government? The doctors administering the test? The manufacturer?

How will GE India meet the aggressive targets set by global headquarters?

Should GE step back from its aggressive sales strategy?

What additional efforts does GE need to make to prove its intentions of promoting prenatal care?

GE Healthcare in India

Mantero, Franco. General Electric , " Promoting Ethical Ultrasound Use in India ." Last modified 2009. Accessed December 5, 2012. http://www.google.com/url?sa=t&rct=j&q=&esrc=s&source=web&cd=1&cad=rja&ved=0CC4QFjAA&url=http://files.gecompany.com/gecom/citizenship/pdfs/ge_ethical_ultrasound_use_india_casestudy.pdf&ei=WwDAUPLSI4KGjALZ1IHoBQ&usg=AFQjCNG3lRD_ydeJry6NmOR0a5gNABfJJQ.

Shah Singh, Harmeet . CNN World, "India combats sex-selective abortion as gender ratio loses balance." Last modified 2011. Accessed December 5, 2012. http://www.cnn.com/2011/WORLD/asiapcf/04/02/india.sex.ratio/index.html.

Ariel Glazer