IBM, University Of Pittsburgh Medical Center Partner On $50 Million Development Fund

IBM and the University of Pittsburgh Medical Center have agreed to jointly spend at least $50 million over the next eight years to develop innovative computer technology for use in health care. The $50 million fund, which would support joint-development of promising information technology projects, is part of an agreement that calls on the health system to buy $352 million worth of computer hardware, software and services from IBM. The new purchase will allow UPMC to save money by reducing the number of operating systems and computer servers it uses throughout its 19-hospital system, officials said. Officials hope the computer infrastructure will be a model for other hospitals looking to build electronic health records, thereby creating commercial opportunities for both IBM and UPMC. More broadly, it is hoped that the development fund leads to profit-making ventures in everything from biosecurity to cancer care, said UPMC President Jeffrey Romoff.

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