I'm Carolynne Borders, Chief Investor Relations Officer at GE HealthCare, and I'm pleased to welcome you all today to our 2024 Investor Day, which is our first as a public company. Thanks also to all of those who are joining us online. Before we get started, let me remind you that the materials we are presenting today are posted on our Investor Relations website, and of course, everything we speak to today is subject to the customary forward-looking statement language that is in our slide set and also in our SEC filings. This is in line with our best view of the markets and the business today, which, as you know, is subject to change.
We're excited about the lineup of presenters and content that we've prepared for you today. Our first set of presentations will run through 9:30 A.M., and then we'll have a 15-minute break. We'll resume with presentations, and then we'll open the session up to Q&A with our team of presenters. We plan to conclude the formal event at 11:30 A.M. today, and then we'll head over to an informal lunch on this side with our technology showcase, and you'll have the opportunity to see some of the exciting innovation that we will have spoken to you about today, and our management team will also be available to speak with you.
We have about 45 minutes scheduled for the technology showcase. Today we have presentations from Peter Arduini, our CEO, the CEOs of our segments, including Kevin O'Neill in Pharmaceutical Diagnostics , Roland Rott in imaging, Phil Rackliffe in advanced visualization solutions, Tom Westrick in Patient Care Solutions . You'll also hear today from Catherine Estrampes, CEO of our U.S. and our Canada business, and Dr. Taha Kass-Hout, who is our Chief Science and Technology Officer. Jay Saccaro, our CFO, will be the concluding speaker for the day before we head into Q&A, and with that, I'll now hand the meeting over to Peter Arduini.
Thanks, Carolynne. Thank you. Thank you. Good morning, everyone. Welcome to, again, our Investor Day 2024. As Carolynne said, this is our first Investor Day as a public company, and obviously it's a special day. We were actually in this room just pre-IPO before we came out. Look, we hope to show you a lot of the progress that we've made since spin. You're going to hear from the presenters talk about a lot around growth acceleration and obviously innovation around the pipeline. But also you're going to hear a lot about driving the inefficiencies out within the organization.
And look, our core goals are focused on how we deliver value for patients first, customers, and ultimately you, our shareholders. So a little view here on the slide here by the numbers. So we've obviously had some highlights here and some progress since spin that we're quite proud of. We're on track to $20 billion of revenue, up from about $18 billion when we spun out just a few years ago. We've made great progress on margin expansion. You're going to hear a lot more about that. We're on track to our commitments of roughly 16% here this year, and we're investing to win.
We expect that we'll spend about $1.3 billion on R&D investments and increasing our vitality rate on our products, which I'll touch on here a little bit further later in the presentation. We're a leader in AI med tech, and we're going to spend a lot of time talking about how you monetize that and what that actually means here into the future. We've topped the list of FDA authorizations, meaning products that are approved that have machine learning models in them at 80.
I think we're around 40- 42 at the time when we were just launching. And look, I think the numbers tell a positive story of what we've done to date. So this is really our strategy framework that some of you have seen before. We talk about this from a standpoint of our purpose. And a big chunk of what we try to drive is this broader idea of creating a world where healthcare has no limits. And that's a lofty, inspirational purpose for us. But it's really what we strive for. It's the kind of people that we recruit into this company. It's actually pretty inspiring to see the folks that want to come to us, not because they just want to make great products, because they want to actually change how healthcare can be delivered.
I would submit to you, we're one of those few companies that has that breadth and longitudinal approach to be able to do that. The three pillars you see here are really how we think about strategically what we're doing. You'll hear those throughout the presentation. Precision Care, which again is about enabling data and devices across a disease state to deliver better outcomes. But ultimately, from a company standpoint, many of you think of us as an imaging company. Over time, I want you to think of us as a healthcare solutions provider. And you're going to hear many of those threads here this morning.
Obviously, growth acceleration, it's about products that actually help accelerate growth, but it's also looking about moving into near-neighbor markets that actually are growing faster. And on business optimization, I think you all know we embrace Lean across the company. Lean is about a methodology that focuses on how do you delight the customer, but it's also about taking waste out of the system. And that waste, in many cases, drives better outcomes for customers, but it also has the impact of driving better margins for the company.
And that's all underpinned here with the cultural principles that we've laid out. So let me talk a little bit about, since our first two years, I'll just touch on some of the highlights here that we've done. Look, we've significantly increased R&D. I think most of you know we were around 4% of sales in R&D. We've increased that to 6%. During this time period, we've been at double digits. And I want to show our work about what you get for that investment. And I think that's one of the important messages that we'll deliver here this morning.
We've made significant progress on our digital capabilities. Again, you're going to hear quite a bit from the individual business leaders, but also from Taha, about how those come together. Over 100 products that we launched in the last two years, and leading in this cutting-edge radiopharmaceutical area, which we'll try to decode a little bit and talk about what that actually means and what it can mean here into the future. The next area here is speaking about growth acceleration areas, leadership and enterprise selling. I think this is one of the important aspects that differentiates us.
Only a few companies in this space, I think, do it very well, but how do you bring all of these things together, really work with a customer on what their problems are, and bring together the right bundle, if you will, the right capabilities to be able to solve that? And in this last two years, we've won about $4 billion of large enterprise deals. And that's continuing to ramp. Close four M&A transactions we'll touch on. And again, you can't succeed without the right culture.
I think this room, the leadership team you see, two-thirds are in new roles, maybe not new to the company. Some are. And our top leadership team, we've over 50% of the team has either new in their role or been upgraded. And I think we've got the right alchemy and right structure now to be able to kind of do what we need to do and take the company to the next level. And then lastly, under business optimization, this focus around margin driving results, ultimately getting this accountability culture in place.
I think most of you know we've actually paid down over $1 billion of debt and feel quite good about our healthy capital structure, and I had mentioned about lean thinking about how we run the company, this combination of customer delight with shareholder value return, so our business, to frame up the business, we operate in four segments. You can see them here on the page. Imaging is our largest at $9 billion. Think MRIs and PET scans and CT and X-ray. AVS, Phil will talk more about, which is kind of our newest construct, which is $5 billion. We took ultrasound and our interventional labs and put them together. Three main reasons we do that. That creates a really concentrated level of cardiology in our business.
It also takes a look at where you're seeing more integration in the labs and brings a business together that's looking to integrate more devices in the lab. The last part is between ultrasound and mobile C-arms, some of our biggest sales in the outpatient center. So again, slight pivots in many cases and other areas, opportunities to kind of think about the business differently. PCS, great business. Tom will talk about patient care and also in anesthesia where we're a leader. We think there's a lot of opportunity to evolve both of those businesses. PDX, pharmaceutical diagnostics, which many of you obviously here follow primarily med tech. Some of you touch pharma. We tend to be a little bit different this way.
This is actually a pharmaceutical business that's matched up with our imaging business, both for contrast for vascular imaging and now radiopharmaceuticals for functional imaging. And Kevin will go into a lot of that. And then digital and AI and services. And our market opportunity has been growing and expanding now to over $110 billion. So I want you to think about this in a simple framework. I mentioned the strategy, but if you say, across our company, what are four things everybody is laser-focused on delivering? These are the four things. So first of all, we'll spend some time on this is leadership portfolio. You guys know this well. What drives growth in med tech?
If you have a best-in-class product that somebody else doesn't have that solves a clinical issue and has a very good ROI for the customer, miraculously it grows well and does well, right? That's a key part of what we're trying to focus on. Secondly is optimizing the business for margin expansion. Third is this idea of delivering precision care in key areas. And we'll talk about what some of those areas actually are. And then the fourth is building new revenue models like software as a service and executing also on inorganic opportunities that ultimately contribute to more recurring revenue.
And we think that's important relative to creating sustainability over the long run. So everything you're going to hear today is really focused on our confidence and our ability to be a mid-single-digit grower. I think that's one of the themes you'll see throughout the presentations. Our product pipeline, look, we've had some gaps in the pipeline. It's no mystery there. You're going to see how we've actually are filling those gaps, but also skating to where the puck is moving towards in the future.
Multi-modality offerings in radiopharmaceutical bring kind of this longitudinal view, which makes our company more sustainable strategically, and from a digital and traditional services, again, opportunities to continue to expand those, and as I mentioned, being able to bring it to market, not just as verticals, but in a longitudinal way, which actually helps solve some of these larger IDN or bigger tender opportunities that are out there, so I'll go through these four areas here, so this first priority is having this full suite of leadership products, and again, as I mentioned, we've made some good progress. We have more to do, which we're going to share with you.
So first off, here is that 6% of sales into R&D at this point in time. We've put in a new R&D process, what we call worldwide product plan, which has really helped us think across all the spread of GE HealthCare, how to prioritize the most important programs, but also how to actually link them together across certain disease states. And we've been able to do that more efficiently. And you'll hear that from each of the teams about even from code development to actually how we're making those trade-offs.
Our NPI vitality rate, which again means the revenue that we're actually, orders and revenue that we're actually achieving in a given year, how much of those are coming from products that were launched within the last three years, which tends to be a really important metric relative to how well your pipeline is contributing to the growth of the business. We will expect that to continue to expand as we go forward. So products here on the right here, you can see these are many of the examples, some that you know, some will be here in the showcase that we can talk about that are driving that growth today. So we've made good progress there. If we move on to the next slide, this is an important chart.
It's not a comprehensive chart of all product pipeline, but I think it's one that will capture some interest from all of you here. So what this is saying here is, what did we do with the $2 billion of R&D spend that we've actually put into the business the last couple of years? This is really some of the big opportunities and investment areas that we have that are coming out. This is not comprehensive to every product, but if you talk about the big needle movers here over the next couple of years, this is what you have.
This demonstrates our innovation capabilities and our opportunity really to capture share, especially in the 2025- 2026 launch window, which then converts into revenues, obviously into the next six to nine months post those launches. And so we've invested in differentiating technologies that can do two things. One is help us get pricing and market share together, but also because of platforming, which is something you'll hear a lot about, increase our gross margins, particularly in our imaging portfolio.
So in the MR business, you're going to hear a lot about our next-gen platforms that actually enable differentiated capabilities, both on the image quality, scanning capabilities, but also on the productivity standpoint. PET, as you can see on here, introducing a full-body PET system. This is going to be a really interesting dynamic area for us. We have really the only fully scalable system that you can have a field of coverage that is priced appropriately for cardiology, oncology, but can all be fully upgraded to a full-body system.
I would submit to you, our crystal that we use has the highest sensitivity and is really going to hopefully change the game in the future about even doing lower dose applications in this area, which opens up the opportunity for screening in the future, which is going to be super important in how the evolution of radio pharma evolves. CT, a photon counting solution, we're going to talk more specifically. Roland will get into it. But our Deep Silicon approach is unique to the marketplace. There's obviously another product in the market. There's other products that are becoming on certain different technologies. We think our approach is going to make a difference, not only in resolution, but this area of spectral imaging, which I'll let Roland kind of get into.
AVS, we've got a lot of new products coming out on this new platform capability that increase our overall margins of that business, but also this opportunity to integrate within interventional. We came out with a new cath lab this year. We've been taking share with it. Honestly, it's the first cath lab that we've had in quite some time that's been very competitive. That product then, we're actually going to be moving into obviously vascular and also neurovascular. For any of you that follow the device companies, all these minimally invasive devices that are out there and structural heart, all those have to be placed in these labs. Truth is, we haven't had a really strong position in vascular, neurovascular. In the future, we will. That will all be new incremental growth for us on a go-forward basis.
And then PCS and the new monitoring ecosystem here, we've got lots of interesting things coming out. Tom will talk about how monitoring moves from just a box that gives you hemodynamic information into a predictive capability. And then PDX, we'll spend plenty of time, you know about Flyrcado, some of the other molecules that are out there, but also this connection with the devices. Having the molecules or just having the devices is interesting. Having them together and having a suite of solutions is really what customers want. And that's part of what obviously we're going to bring to the market.
And then in digital, we've got a lot of things happening across all of our products, but in particular, we now actually have an ecosystem for how to host all of our apps and a SaaS backbone for actually how to bring those to market. Both of those super important. All of this together, we expect to be one-two points of incremental revenue growth over the medium term for us.
And so I would also just put in a plug here when we get to the break for those in the room or excuse me, at the end of the session, join us actually in the tech area where you can see some of those things. So our second priority that I mentioned, the first was leadership product. Second is optimizing the business for margin expansion. Here's the four areas that we're going to focus on. And again, you'll hear this from each of the teams, platforming across the businesses.
Second, variable cost productivity, which is a relentless focus on current products to take at least 4% to 5% of the cost out of those products with the same focus that you put into a new product introduction. Third is this organizational simplification. We'll be out of the TSAs at the end of this year fundamentally. And this is about reducing different costs within our systems. And finally, structure optimization. In some ways, things such as rooftops and costs that are there to get a better utilization of them, but ultimately driving an increase in revenue per FTE. So just a couple of examples here of things that we've already started on or working is in platforming, we've reduced our CT product configurations by over 50%. So what's this do? So this drives better savings.
It drives better agility, but ultimately it's helping us actually maintain or grow share in a market where we have some product gaps and at the same time, multiple points of gross margin accretion. If you take a look at the next area there, $90 million of savings in 2024 already in rationalizing our IT. This will be the gift that keeps on giving. And there's plenty of opportunity as we right-size many of our systems to be able to take more cost out. And then over the medium term, we've got a couple of areas here on structural optimization.
Our plans are to reduce our manufacturing footprint by at least 25% and optimize that structure around the globe. And then on variable cost productivity, again, this like-for-like product cost reduction, we expect to take out over $200 million of savings on cost improvements within the designs. And we're on that track today to be able to do it. So the third area that I had on the list is about our unique position to deliver on precision care.
So one of the big asks I get when I see any of the CEOs here in the city or something is this whole discussion about how can you help us not just sell equipment, but solve some of these big issues. And you guys hear these from many of your different companies that you follow, but increasing costs to providers, the inefficiencies obviously in the system, even navigating between disciplines within their own hospital and dealing with incentives around that, clinical burnout or not enough workers in specific areas. And then a lot of data is collected, a lot of data is created, a lot of answers in that data, but it's hard to use.
So how can we play a significant role in that? When you think of Precision Care, I think the first thing is think about this horizontal view about how care is delivered from the patient and provider perspective. What we want to do is be customer-backed problem solvers in this way. Taha will spend a lot more time on it, but the construct you'll hear throughout the morning is around what we call D3 in Precision Care. Again, it's a construct to think about building a smart device that's cloud AI-enabled, thinking about the disease states or care pathways it will work in. Is this part of a cardiology solution? Is it part of oncology, specifically prostate or maybe breast cancer or lung? How does that fit in to solve that problem?
It's enabled by data and digital, and particularly more so AI. That's our construct: smart devices, disease state focus, and digital AI. So you'll hear that. Again, this is optimized with the data flow that happens across that. And Taha will do some framing at the end to kind of bring that all together. But I would say on the next slide here, what I want to show you is, say, so okay, Pete, where are you guys going to focus on precision care? Here are five key areas that we already are focused on. First is in monitoring. And again, the game is how do you change monitoring into a predictive patient-centric tool that actually adds real-time surveillance to actually know when a patient may be actually going to crash or have an issue before they do?
Anybody who spent time with loved ones or themself in a hospital, you get woken up every 20 minutes for a nurse to check your vitals. Well, that can be done by machine learning and actually let the nurse come in when they really need you as opposed to different times, and think about that not just in a hospital, but at home or in alternate sites. All those are interesting for Precision Care. Radiopharma, again, we'll talk more specifically about those opportunities across the area. This idea of Interventional devices and surgical devices integrated, screening as well, and lastly, again, data and AI at an enterprise level.
We do a lot at the product level, but at the departmental level, which could be radiology or cardiology or neuro or labor and delivery, how do you bring the solutions together there? And then even at the enterprise across your whole hospital, and we'll touch on those with products such as Command Center. This is a slide here that touches on our fourth point, which is about our recurring revenues through service and SaaS and PDX.
Look, we've had about 45% or more of our revenues are recurring in nature today. Service attach rate, growing digital, consumables like PDX are going to continue to expand this. In the future, nearly all of our products will be able to be remotely serviced, which is a really important aspect for fixed cost of delivery, but also in a SaaS model, that connectivity enables the capabilities for cloud interactions relative to new features. And obviously, new commercial models, we will be launching our first enterprise SaaS backbone in 2025.
And so that first product Phil will touch on is our handheld ultrasound, the Vscan Air. And that will be one of our first products that we'll bring out, but obviously that will continue to evolve. And then the PDX business, just by the nature of it and the ongoing flow of product delivery with its growth, is going to play a significant role. It's seven quarters now of high single-digit or double-digit organic growth. And with the new molecules coming out into the future, we see that being a really strong driver into the future. And the last part of the four strategies is this M&A area. And Jay will touch on how we think about criteria later on, but we get a lot of questions about what are you guys focusing on? It's really these five areas.
Look, where we have an opportunity to deploy capital on products that will fill a gap in our current portfolio, obviously we'll move on that. Secondly is consumables that connect to our fleet that are a natural extension of what we do to bring more recurring higher margin to those actual products. Therapies that are enabled by our devices and help fill out that Precision Care area are also things that we're interested in. And then enterprise capability. So MIM Software, which is a product that actually works across multiple care pathways and disease states to move the data, is a great example of something that integrates from an enterprise standpoint.
And then software, as we have this new backbone from all types of companies that can plug into our area that work on our install base, those are kind of the target-rich areas that we're focusing on. We think obviously organic investment is our first priority, but inorganic investments for a company with our breadth make a lot of sense here over the next few years with our balance sheet and the condition that's in.
And so summary here, I'd say, look, the four focus areas that we talked about are really designed to be able to deliver mid-single-digit growth, expand our margins, and also improve our cash flow. The pipeline that we have that associated with those two to three years of investment, we feel very good about. You're going to hear more about that specifically. And again, as I said, that's worth one to two points of growth over the medium term. And this continued margin expansion is a big part of our focus and enabled by the business optimization that we have.
That ultimately will take us to the high end of our EBIT margins beyond where we are today, and our Precision Care strategy is coming together in all of those pieces. Look, so ultimately, I think as a critical player within healthcare, we've got the right products, we've got great innovation coming out, we've got the right team in place, and with the evolution of the needs of our customers around the world, GE HealthCare is really well positioned to help solve some of those problems. With that, what I'd like to do is we're going to actually, as Carolyn said, have the segment leaders come up. We're going to start first off with Kevin O’Neill, who's the CEO of our Pharmaceutical Diagnostics, and tell you a little bit about what they're doing. Kevin.
Thanks, Pete. Thanks. It's great to be here this morning, really to share with you how we're accelerating growth in PDX and how we're delivering precision care through innovation. Just before I start, just a quick reminder. Pharmaceutical diagnostics, we make diagnostic imaging agents, contrast agents, radiopharmaceuticals that work in tandem with our imaging equipment to create the best diagnostic image and create the best outcome for the patient.
What you see on the screen here is just an example of one of our products. This is a vial of DaTscan. DaTscan is an imaging agent for Parkinson's disease. At this point, it's just been manufactured in our Eindhoven facility in the Netherlands. It's about to be placed into this purple container. It's a lead-shielded container for the radiopharmaceutical. That product will be shipped to the hospital within 48 hours. A patient will be scanned and diagnosed for Parkinson's disease.
We do that over three and a half thousand times a week from our facilities in the Netherlands and in Chicago, and it's a great example of how we differentiate. We deliver with 98% plus on-time delivery, and it's a real key enabler for our customers who expect us every day to be delivering the right doses to the right patients on time, so there's three key things I'd like you to take away on pharmaceutical diagnostics today. Firstly, we're transforming radiopharmaceuticals. Secondly, we're leading in contrast media, and thirdly, we're really able to leverage our scale of GE HealthCare, and I'll just go through those three briefly now. In radiopharmaceuticals, there's significant new growth opportunities from both our proprietary radiotracers, but also our pipeline of new products across neurology, oncology, and cardiology.
In contrast media, we expect the volume of CT and X-ray procedures to double in the next 10 years, and we've got a fantastic legacy in our business, decades of enabling contrast-enhanced procedures. We're building on that capability to ensure the supply of those products to meet the demand ahead of us, and finally, as Pete mentioned, we're leveraging our scale as GE HealthCare. We're unique as the only company with both imaging equipment and pharmaceutical diagnostics. We can bring those together as a unique pathway enabler with the agents, the hardware, the software, and the AI, so here's some of the numbers. The market we play in, about $14 billion global end market, growing at between 7% and 9%. Our revenues in 2023, $2.3 billion with segment margin of 26.8%.
This year, as Pete mentioned, we're growing high single-digit, and we expect to expand margins in excess of 300 points to have EBIT margins at 30% plus by the end of this year. We've got a terrific pipeline of new assets, eight assets in the pipeline, which I'll share as I go through the presentation. And just to put it in context, our products were used in 119 million patient procedures last year. Four patients every second are getting diagnosed somewhere in the world using one of our imaging agents. And in the time I'm up here this morning, about 5,000 patients will have had a diagnosis and an image taken using one of our pharmaceutical diagnostic products. So how do we win? First of all, contrast media. It's a $7 billion market, growing at between 5% and 7%.
And we win on contrast media by delivering on that increased demand for contrast, ensuring the security of supply for our customers every day. So when the patient comes to the hospital, the contrast is there, and they can have their contrast-enhanced procedure. Molecular imaging. Molecular imaging, it's a $7 billion market, growing at between 10% and 12%. We've got a terrific portfolio of established products, and we're driving innovation. And it's this innovation that's really driving the growth now in radiopharmaceuticals.
And to make this happen, we have to be super disciplined in how we allocate capital for growth, applying Lean to eliminate waste in our business, to simplify and to drive productivity. With all that work, we're able to fully fund our R&D pipeline and allocate the necessary capital to build out the capacity expansion we need to have to protect the growth in contrast media. What are the key growth drivers in pharmaceutical diagnostics? Firstly, look, the adoption of new therapies is really driving the need for precision diagnostics. And the best example of this is the Alzheimer's care pathway.
In the last two years, we've had new anti-amyloid therapy drugs now from Eisai and from Lilly that are transforming the Alzheimer's care pathway. But in order to identify the patients that need to go onto that therapy, you need to perform a diagnosis to identify the key biomarkers that we know those drugs respond to. We have a terrific product, Vizamyl, in the beta-amyloid space. It's a PET imaging agent that images beta-amyloid. And since the launch of the therapies, we've seen sequential quarter-over-quarter growth of Vizamyl to support the Alzheimer's care pathway.
The evolving reimbursement landscape, both here in the U.S. and around the world, is really driving access and expanding access to next-generation PET radiopharmaceuticals. Great example of this is Flyrcado. Flyrcado is our newly approved PET imaging agent for myocardial perfusion. We really believe this is a game changer. It's going to expand access, and the reimbursement landscape changes are really helping and supporting here. And finally, the aging demographics with population growth, improved access to healthcare. As I mentioned earlier, doubling the demand for contrast-enhanced procedures, again, a key driver of growth for us.
So if we go to contrast media, I remember being on this stage two years ago, and I shared a very similar chart to this one here in terms of the growing demand for contrast agents, saying it would double in the next 10 years. And there's nothing that's happened in the last two years that changes that outlook. We see increased interventional procedures that need contrast to perform the procedure, and greater access to healthcare is expanding contrast-enhanced procedures around the world.
And it's our role to secure the supply, to secure the investment to meet that demand in the years to come. We're securing the supply of key raw materials, iodine that's used in contrast agents. And we're using lean to create capacity, and we're investing to expand the capacity in our API facilities and our film finish plants. We're also innovating in contrast agents. MRI imaging, it's a $1.2 billion market today, and we're developing one of the first alternatives to gadolinium-based MRI agents. We're using manganese as the base of that agent, and we believe that could be significantly disruptive to the broad MRI imaging market.
And then we've got a great franchise in ultrasound. We've got Optison, which is our cardiac imaging agent. Sonazoid, our liver imaging agent. We see great growth in those franchises. And there's also alternative uses for some of our ultrasound technology and therapy as well. We're partnering with pharma to see, can we use microbubbles that are used in these agents as a therapy delivery tool? So we're really excited about the growth in contrast media. Now let's turn to molecular imaging. And again, just a reminder, molecular imaging, these are our radiopharmaceuticals that are used in tandem with our PET cameras and our SPECT cameras to create a functional image, measuring blood flow, trying to identify biomarkers that are an indicator of response to therapy.
And molecular imaging is really transforming today. We're moving from SPECT imaging to much higher resolution PET imaging. This is enabling clinicians both to treat what they see, the diagnosis, but also more importantly, it's just the monitoring of disease as well, being able to see what they've treated, so these very expensive precision therapies, we're able to see, are they working? Is the patient responding? It's clearly a growing market with significant innovation.
theranostics is a key area of growth here, and teranostics is the combination of both diagnostics and therapy. We're seeing this in the prostate cancer space now with products such as Pluvicto from Novartis. It's a $9 billion market today for diagnostics and therapy, and we expect that to grow to $40 billion by 2032. Reimbursement continues to drive patient access, and if I move to the right-hand side of the page here, you see our portfolio under the headings of oncology, neurology, and cardiology.
We've got some terrific products already in the market today, leading products in neurology for Parkinson's and Alzheimer's. We're really excited about the launch of Flyrcado, but we've got a terrific innovation and pipeline coming through behind as well. And it's not only the radiotracers that we have as GE HealthCare. You see below the equipment, and Roland's going to talk about this later on, our cyclotrons for our chemistry systems, our PET cameras, our SPECT cameras. And then there's our digital solutions, which Taha's going to talk about this morning as well. And I think this page just brings together what we're able to achieve as GE HealthCare between the radiopharmaceuticals, our equipment, and AI to really transform the patient care pathway.
Reimbursement in the U.S., we really support the changes that CMS have just introduced in the U.S. with reimbursement for radiopharmaceuticals. This unbundling of the cost of the scan from the cost of the radiopharmaceutical much better reflects the value of the radiopharmaceutical. It's going to be terrific for patients in terms of accessing next-generation tracers, and it gives much more certainty to companies like ourselves in terms of innovating in the pipeline and hospitals in terms of building the infrastructure out for the future.
Five of our products impacted directly by this today: Cerianna, DaTscan, Vizamyl, AdreView, and Ceretec. And let me just give a real-world example here with Cerianna. Cerianna is an imaging agent, a PET imaging agent we have that images estrogen-positive tumors in breast cancer patients. It's a terrific product. When that product is used by the hospital in 2024, the hospital will receive $1,500 for the reimbursement of that Cerianna procedure. So $1,500 to cover the cost of the radiotracer and the scan.
Roll forward to the 1st of January 2025 under the new rules. The hospital will receive $1,500 for the scan, but they'll receive another $3,000 representing the cost of the radiotracer. So the economics of the hospital have moved from a $1,500 scan to $4,500. And we really believe this is a game changer here. It's going to provide better access for patients and, as I say, a better landscape for investment and building the infrastructure for radiopharmaceuticals in the future. If we go to the next page, we're really excited about Vizamyl, and we're really excited about Flyrcado.
And I thought it was worth spending a few minutes here how we're thinking about the growth of these two products going forward. If I start with Vizamyl, our estimate is that by 2028, there'll be 250,000 to 300,000 patients on Alzheimer's therapy. That in itself will be a growth driver for the use of Vizamyl, diagnosing patients with beta-amyloid to push them through to therapy. We also expect with the reimbursement changes as well, there'll be a change in how those beta-amyloid procedures are actually performed in the hospitals.
From a very invasive lumbar punch procedure, which is an option today, but with the reimbursement for PET, the non-invasive PET exam, which gives much more quantitative data on the presence of beta-amyloid, we believe is the right alternative. And then it's also creating an environment for the hospitals to build out the infrastructure. And we believe this will be at least a $200 million opportunity by 2028. In the case of Flyrcado, Flyrcado is a fantastic product, F18 labeled, and it's a game chan ger for PET myocardial perfusion.
are six million. We estimate there are about six million myocardial perfusion procedures performed today in the United States, both on SPECT and PET. Approximately 5% to 10% based on our estimates are PET procedures. But we see with the availability of Flyrcado opening up access to PET imaging, significant growth here in the coming years. Firstly, just by converting existing PET procedures to use Flyrcado, but also to encourage hospitals then to build out the infrastructure required for cardiac PET capacity going forward. And we see this as being at least a $500 million opportunity by 2028.
We're getting ready for the launch right now. We're working with CMOs on the manufacturing capacity. We're now working on pricing. And just to give a sense of how we're pricing the product Flyrcado, we're pricing it in line with other novel PET radio tracers. The price we'll be setting is $2,250 per dose. For those of you who are familiar with myocardial perfusion, you actually typically need two doses to perform a procedure because you image the person once at rest, image the heart at rest, and then image again at stress.
The procedure cost will be two lots of $2,250, about $4,500 per procedure. We're working through the pricing dynamics now to get that set up. We expect the first commercial doses of Flyrcado to ship at the end of first quarter 2025. We're really excited about both of these two products for growth, and they really do represent about a $700 million to $1 billion opportunity in the medium term. If we go to the next page, I mentioned on the numbers page earlier our pipeline. We've got a terrific pipeline.
I'll hit on some of the products here. We're not just excited about Flyrcado and Vizamyl, but there's some great products coming up behind. As I mentioned, in radiology, we have a non-gadolinium-based MRI agent to disrupt that $1.2 million MRI imaging market. In neurology, we've got a PET version of DaTscan coming through that's working its way through the clinical trials now. Cardiology, we obviously just launched Flyrcado. And then in oncology, we've got some interesting work going on with a product called FAPI, which is the next-generation potential theranostic pair, which is very, very good at seeing difficult-to-see tumors, pancreatic, and such like. So we're really excited about the pipeline here.
We're very focused, and we really focus on making sure these programs are funded, and they're going to play into high-growth markets when they're launched. So just to wrap, I'll come back to where I started here. Three things to really take away as far as pharmaceutical diagnostics is concerned. We're transforming radiopharmaceuticals. We're a leader in contrast media, and we're really able to leverage our scale as GE HealthCare, and these three things coming together is going to enable us to accelerate growth and really deliver precision care through innovation. I'm incredibly proud of this business and our teams around the world and what they do for patients every day. Thank you for listening, and with that, I'm going to hand over to Roland to talk about imaging.
Thank you, Kevin. Good morning, everyone. I'm Roland Rott, President and CEO of Imaging at GE HealthCare, and I'm very excited to tell you more about our growth trajectory ahead as imaging is at the center of precision healthcare. To start off, I'd like to share three key takeaways I want you to leave this presentation with. First of all, imaging is a very attractive market because imaging is really at the center of effective healthcare. It guides treatments. It serves for precise diagnosis. It ultimately contributes substantially to improved outcomes.
Imaging is used in pretty much all key care areas, such as cardiology, oncology, neurology, and since many of these chronic diseases are continuously on the rise, and we have growing and aging patient populations in the world, the underlying demand for procedures just keeps growing further. It's about 5% annualized growth, which we see everywhere, and all of this requires more imaging. The second key pillar to take away is we have invested substantially in research and developments over the last years and go forward, so we are ready to launch more than 25 new product innovations over the next years, including AI-powered digital solutions, which will enhance access to high-end imaging.
Also focusing on fast-growing areas such as this very exciting space of molecular imaging and Theranostics, which Kevin just touched. As a third key takeaway, we undertake substantial continuous optimization efforts in our business, initiatives which give us an opportunity to actually grow and create EBIT margin by more than 500 basis points from 2013 over the midterm. This will be based on new product introductions, but substantially on new platforms and the continuous improvement efforts we have in our operations. So there's a substantial opportunity ahead. Now, let me get started to give you an overview about imaging at a glance. Imaging plays in a market that imaging market is valued about $39 billion globally, and we expect it to grow 4% to 5% CAGR over the next years based on this underlying demand of procedures.
We delivered actually $8.9 billion revenue with 9.2% EBIT margin and a pathway towards substantial EBIT improvement in 2023. Today, actually, we serve more than 300,000 units of installed base systems, which are actively in use. So we have one of the largest installed bases in the industry. And we do offer more than 200 software applications for imaging as imaging becomes ever more AI and software-driven. So next, I will characterize the market opportunity and how we win in this space. If we break this $39 billion market of imaging down, we see that molecular imaging, computed tomography, and magnetic resonance are these substantial systems markets. So we talk about $15 billion.
And we expect this market to grow by about 5% annually over the medium term based on this undercurrent, again, of imaging procedures. We also have a strong market in the services market. The market of servicing this installed base is about $14 billion. And not only does it provide customer value with the lifespan of equipment, but this is the area where we have substantial recurring revenue opportunities. And this is also a source going forward for further recurring growth.
A third key market in imaging, and then a growing one, is really the digital solutions space. It's valued with about $6 billion today and expected to grow 6% to 7% annually going forward. So we play in these markets by focusing, A, on leading innovations. As mentioned, we're working on a substantial pipeline of next-generation NPIs, which will enhance our portfolio and let us play and extend our lead also in fast-growing molecular imaging and theranostics space. Our second key focus areas of execution is how we provide value to customers over their lifecycle.
So that means we have this large installed base, and we provide upgrades to customers, upgrades in hardware to keep them current with their fleet, as well as upgrades in software, including AI. And this is a substantial opportunity to double our software-as-a-service recurring revenues over the next three years. And the third key focus area of our execution is to optimize the business continuously for margin growth. I mentioned we undertake substantial platforming efforts and also will deliver cost-optimized designs in the next generation of MPIs.
But we also have a very strong focus on our existing operations, how we can continuously improve these, improve the efficiency, improve processes, and ultimately deliver higher and accretive margin with that. So how do our top growth drivers over the next year align with these market trends of the growing demand and the discovery in radiopharmaceuticals? First, we have this execution pipeline of MPIs. Again, we have invested over the last couple of years increasingly, and go forward, we do have 25 MPIs lined up in the timeframe of midterm, which will help physicians to stay at the forefront of innovation, so we expect substantial growth contribution from these MPIs.
A second key growth driver of ours is to build on the leadership position we have attained in artificial intelligence. We create AI tools to increase operational efficiency and access. These are essentially the smart devices Pete referred to with our D3 strategy to make devices smarter, so ultimately help the user be augmented with tools which are more efficient, make it easier to acquire images and interpret them, and that also helps in attaining expanded access in emerging countries while increasing the efficiency in the densely populated areas.
A third key area of growth over the next years will be molecular imaging. As Kevin has expanded, it's a game-changing environment we see here now. And we are uniquely positioned with our broad portfolio spanning from pharmaceutical diagnostics, then over cyclotrons to produce these radioisotopes, high-end PET and SPECT cameras, and ultimately specialized digital solutions which help our customers to plan and do these procedures. So let me now zoom into each of these three growth areas. And I will start again with molecular imaging. So Kevin told us about these novel new tracers and radiopharmaceutical drugs which are actually coming to market.
And these therapies and diagnostic possibilities are just unique because they go beyond what traditional imaging can actually achieve. And we are uniquely positioned to capitalize on these developments, such as Flyrcado for myocardial perfusion or Lutetium-177 for targeted prostate therapy. And we also expect more growth actually in the neurology space based on new therapies for Alzheimer's. We know there is capacity in the current systems market out there. So our customers have capacity to get started with Flyrcado and accelerate it.
But we also help customers by means of upgrading former systems to the latest generation, including software, and of course, to deliver more systems as we go to extend capacity. We do actually see an increased growth trajectory for PET systems in the midterm. We see the PET market currently accelerating. We do expect this market to keep growing in high single digits towards the year 2028 to actually achieve about $3 billion of size. And as mentioned, we are uniquely positioned because we are the only healthcare industry partner with solutions spanning this entire spectrum.
Again, cyclotrons needed to produce radioisotopes, highly differentiated PET and SPECT cameras, which have greatest sensitivity in the case of PET and at a very low dose. These are capabilities which will be leveraged by these new radiopharmaceutical drugs. Next, our leadership position in AI, our second key growth driver. Why does AI matter here? With this growing number of procedures healthcare systems have to deal with, come actually that many of our customers are reporting big challenges. Their departments, their radiology departments, are short of staff. There is a lot of burden on these physicians. At the same time, any inefficiency in the process is actually wasteful and contributes to the burden. This is where AI comes into play. As GE HealthCare, we started pretty early actually to embrace AI in med tech.
Today, we have a position that we are actually leading the FDA list of approved medical devices for the third year in a row. And examples for that are our effortless reconstruction capabilities. We started some years ago with AIR Recon DL, and this has been a flagship capability. Today, more than 34 million patients have been scanned with the help of AIR Recon DL. And some customers report actually, while there is excellent image quality provided with this AI reconstruction, they could reduce their scan time by up to 50%. So that has a substantial impact on their operations and their economics. Besides AI in reconstructions to ultimately get to high-quality images, even with older equipment, we also have embraced AI in the area of effortless workflows.
So essentially helping users with an AI copilot for imaging to streamline and automate some of these time-consuming tasks or take steps out of the workflow everywhere from pre-scan to post-scan. This effortless imaging portfolio of capabilities actually improves access for patients. It does reduce the burden on staff and also improves the ROI for our customers of these investments. Let's hear an example of how some of our customers leverage artificial intelligence on the example of Sonic DL, which was a very recent development, extending AIR Recon DL in MR for cardiology. Let's hear from customers what they think about that.
The acceleration of Sonic DL is so high that you can scan regardless of the situation and the type of patient that you have in front of you.
With Sonic DL, this kind of takes AIR Recon DL to the next level. With Sonic DL, we're not only able to gain back that SNR, but able to further reduce the scan time. I think deep learning is one of several tools, but really a critical tool to handle potential backlogs in MR volume.
Now, as someone who is in medical imaging and who does research, Sonic DL is also exciting to me for other reasons because we know that this is going to be the first stepping stone to becoming something a lot more.
So these are three of many customers who are actually very enthusiastic about the potential AI is bringing to their operations. So I spoke a lot about AI now. And in addition, other digital capabilities along our D3 strategy to make devices smarter, to align them with these disease states is exactly how we are thinking about transforming workflows and ultimately help improve patient outcomes. We have accelerated our organic developments in this space with all these applications. But we also have extended our inorganic activity quite substantially over the last couple of years.
For example, we acquired MIM Software earlier this year. And MIM has helped us to greatly expand our possibilities in the molecular imaging space. So we have a few suites here of planning solutions which help our customers use that. And just recently, we have signed an exclusive distribution agreement with Ionic Health. Those of you in the room will be able to see it later in the tech showcase where we are actually remotely scanning an MR scan with patients which are in our Waukesha facility at this point. And we do the scan right from here at Nasdaq.
We also just announced the partnership with RadNet, a very large outpatient radiology system in the United States who actually has a company in DeepHealth. And that company actually is providing AI capabilities which we are going to commercialize, especially focused on imaging solutions for mammography. Combined with our Pristina offering, this makes it a smart mammography solution, which is actually quite differentiated. And so as we are building this suite of capabilities, both organically and inorganically, we are actually empowering our customers. We are giving them more tools how they can actually affect better outcomes. And while this provides better lifetime value for our customers, it also gives more loyalty and it helps us to drive our software-as-a-service revenues. So as a third pillar of growth, I spoke about our 25 new product innovations which are coming up.
And I want to give you an example about the state of that on the example of CT. In computed tomography, we have been in this space actually for several decades. We have been a leading player over those generations. And recently, again, had some industry-first developments like deep learning CT image reconstruction, as well as an FDA clearance this year of an ECG-less cardiac CT. Today, our Revolution Apex product line is so performant that it allows a one-beat coronary image, motion-free at any heart rate. So these are important capabilities in cardiology because cardiac demand is significantly growing. And we actually see that growth opportunity keeps getting even better utilized by customers, not the least by the recently announced reimbursement improvements in the United States, which were a huge win actually for the cardiac community.
So besides these capabilities, we also focus on providing financial scalability and operational scalability to customers. Our Revolution Apex and Ascent product lines are platforms which can be upgraded on site with newer detectors. So customers keep these systems current and they can keep their fleet more standardized that way. And we also provide software upgrades to these systems in the form of a CT smart subscription. So customers subscribe and they would get new versions of these AI capabilities over time. So all these are key opportunities for recurring revenue.
As you see, we have a very strong portfolio in CT actively today. However, we also continuously work on the next generation of CT by means of photon counting. And that's what I'm going to cover next. So many of you know that we continue to develop the industry-first Deep Silicon approach in photon counting. What does it mean? We have the vision actually to break through with CT here in spatial and spectral resolution at the same time. This system architecture which we are building is actually bringing the best of this AI and deep learning reconstruction capabilities you have just heard about into Deep Silicon.
It also focuses on an ultra-high resolution scan mode with wide coverage that is very essential for many applications, especially in cardiology. And then spectral imaging from traditional dual energy approach to an eight-beam imaging capability with Deep Silicon. Eight beams of energy means that essentially the spectrum of differentiation enhances. So compared to traditional, there is more differentiation, what tissue, what material do physicians actually see. And that is giving outstanding insights, for example, in oncology to improve lesion delineation or iodine quantitation.
We made substantial progress in Deep Silicon photon counting from several iterations of prototypes which we develop with flagship customer partners to ultimately arrive at a mature manufacturable design which we have at hand today. We are preparing our production in Waukesha, Wisconsin as we speak. And while there is always some uncertainty with advanced technology developments, we currently expect to submit for regulatory approval in the second half of 2025 with a goal to commercialize in 2026. So I gave you a number of examples of how we drive innovation in the area of molecular imaging, in the area of artificial intelligence, as well as in CT and photon counting. And while these are all contributing to top-line growth, that's also the segue for the substantial margin improvements which we're going to see in imaging over the next years.
Innovation means we bring these 25 new product innovations with uncompromising safety and quality. Safety and quality always comes first in our priorities. But these differentiated capabilities which new MPIs bring, they actually help us to attain price. And at the same time, these products are based on substantially cost-optimized platforms. It also is the area where we are connecting these devices with software subscriptions. And that will develop our software subscription and build out a software-as-a-service subscription revenue lines. We are basing these new products on new platforms. So we have undertaken substantial platforming activities over the last years. For example, in CT, we reduced the number of different discrete components by more than 50%. That means we have more sharing, we have more scaling, and ultimately less complexity to deal with these components.
Not only do we optimize for hardware platforms, we have also brought some of our software legacy stacks together, closer together to a unified code base with a harmonized user interface, which is great for customers at the same time. So it is our goal that over next years, 95% of all our products will be based on these new platforms and ultimately drive our margin accretion. As a third key pillar of margin growth, we are undertaking relentless efforts to also redesign existing products, to optimize our processes, to automate our manufacturing, and to look at our footprint and optimize that, leading to improved cost, including logistics cost, but also ultimately to reduce the delivery times to customers, thinking about our substantial backlog which we have built.
All these productivity activities and margin improvement initiatives are supported by this Lean culture which we have established, a continuous improvement mindset in our teams which actually translates to these innovations and improvements and ultimately to continuous margin improvement. In summary, imaging plays a key role in precision healthcare. The demand continues to grow. It's a very attractive market which we serve with a strong portfolio today. And that portfolio is only going to get better over these next years with 25 new NPIs, including highly differentiated AI solutions along the customer lifecycle. We are focusing and very well positioned on this growing space of molecular imaging and diagnostics. And all these growth opportunities will also at the same time help and contribute substantially to margin expansion where we have line of sight of more than 500 basis points.
We have established new platforms and we keep building those. We keep executing with our lean mindset and drive operational efficiency that way. As you could see, there is tremendous potential of AI in imaging. And we are really excited about delivering precision care through innovation that way. But at the same time, imaging has an enormous potential to make an even bigger impact. And I very much look forward to unlock it. Thank you very much. And with that, I hand it over to Phil.
Thanks, Roland. Appreciate it. Hello, everybody, and welcome. My name is Phil Rackliff, President and CEO of the Advanced Visualization Solutions business that Pete talked about earlier at GE HealthCare. I'm really excited to share with you today the strategy of AVS and why did AVS really come together, joining two great technologies: our image-guided therapies business that I used to lead, now combined with our leading ultrasound portfolio to create better solutions.
So the purpose behind AVS was really around taking a customer-centric approach to how we integrate these products, adding solutions to them to drive two things. Number one, increased and faster growth and improved margins. We'll talk more about that today and how we're realizing those with more specific examples. To the right here, you can see a practitioner using both our advanced premium interventional lab, Allia, along with a portable handheld ultrasound product, Vscan Air.
These products being used concomitantly to treat a patient on the table. This is only a small example of the types of integration that we will continue to do to drive additional growth and margin expansion. Next, I'd like to move to really what's core within AVS. At the heart of it all, it's around our innovation DNA. We are market leaders across many of the segments within AVS. We will be launching by the end of this midterm 40 new NPIs, and an example here, as you see below, is a fetus in development, both 3D and 4D. This is done with our Voluson product.
Voluson is a market-leading product for our women's health ultrasound portfolio. We didn't just rest on our laurels with a great image. We did an acquisition to bolster this. It just closed a couple of months ago called Intelligent Ultrasound. What Intelligent Ultrasound does is enable a practitioner and a sonographer to get the measurements of the fetus in up to 40% less time.
So you take a core product of Voluson, you now add on an AI application that we bought through acquisition called Intelligent Ultrasound, and you're increasing productivity in the hospital and healthcare system. In the middle, we continue to advance our AI and digital tools. We currently have over 30 FDA-cleared AI solutions out in the marketplace. And we look to double that over this midterm. And the third is an open ecosystem. So really, as you heard about Pete earlier talking about our leading premium interventional suite, that's doing extraordinarily well in the marketplace right now.
But it's important for us to be able to integrate other med tech companies, many of which you cover, their technology into our premium interventional suite to drive efficiency, to make procedures faster, to take more boxes out of an OR suite so you can increase throughput. An example here is to the right, a partnership that we launched just recently with Boston Scientific with their intravascular ultrasound product. We have active partnerships with not only Boston Scientific, but J&J, BWI, and a number of others.
Next, we'll go into the market sizes just at a glance. So AVS in total, $19 billion market, stable, stable growth market. Number two is the revenues within AVS is $5.1 billion, as Pete mentioned earlier, driving significant margin and EPS for GE HealthCare that we look to improve over this midterm significantly. The third thing is the installed base. When you have an installed base of 800,000 products, it enables you two things. Number one, you can upgrade your fleet. Think of that as 800,000 opportunities to upgrade your fleet if you're a hospital administrator.
And number two, you can cross-sell products within the portfolio to drive greater solutions for the healthcare system. And the last is really the number of exams and the amount of data that we are getting from our products that are in the marketplace right now, 700 million scans annually. That's data that we can use, that we can mine, and we can create better AI solutions as a result of that. Next, I want to talk a little bit about how AVS is structured. Given this is a new segment, it's new to a lot of the people here.
I'm excited to really show you and demonstrate that we took a customer-centric approach. We organize this way. In the upper left, we have the comprehensive care ultrasound. Now, let me explain to you what this is. This is really general imaging ultrasound. Our products like Logiq, you'll hear and you get to see that next door, but Venue, Versana, and others. It's our general ultrasound products plus our point of care plus our handheld and Vscan Air altogether. Continued launches here in this space, and you'll see three of them next door at the tech showcase.
The second is our women's health portfolio. On women's health, I talked about Voluson earlier. It's been a market leader for a long time. We're not only continuing to improve each product with new NPIs, but also streamlining and platforming plus adding on AI. As you go to the upper right, this one gets quite interesting here. You have our premium interventional labs, again, that Pete brought up earlier, and we're putting a lot of investment into R&D.
You saw three new launches into this interventional suite in that product pipeline. It'll be treating new applications, including neurovascular and an enhanced interventional suite. But then you add to that a market-leading cardiovascular ultrasound portfolio and an invasive cardiology product that works specifically for electrophysiology. And we are highly differentiated amongst our peers in actually having all three of those products. And what does having three products mean here? It means that you can integrate these products better. What does integration mean? It means maybe it's not three products. Maybe it's one product. Maybe the data flows a lot easier.
The ramp-up and the double-digit growth within certain areas of cardiology, interventional cardiology, specifically structural heart and electrophysiology means we're going to need to build more cath labs across the world. And having these three puts us in a unique position to do that. And then in surgical innovations, this is our mobile C-arm platform. So this is the OEC, as many of the people know it that are practitioners across the world. We are a market leader here along with our acquisition of BK Medical. So being able to have these together really allows us to focus on clinical areas, specifically neuro, spine, liver, lung.
You can now put these in. You can create really unique solutions as we go forward to become a real force multiplier. Next, I want to talk about the specific markets that we talk about and how we're going to win. I talked about many of these earlier, again, calling out there are areas of double-digit growth. You have to subsegment by these markets to a deeper level to actually get to those. But we're focused on those so that we can be part of that growth initiative.
On the right, the core acceleration with innovation. We will continue that. We're not going to rest on our laurels as far as our innovation DNA that I spoke of earlier. But it's the adding of recurring revenue streams. It's the adding of AI and digital that gets that very exciting. Expanding into adjacencies. This is exactly what Pete brought up about the D3 strategy. So take a disease state like cardiovascular. You add to that digital, and then you create smart devices.
And so that really provides us an opportunity to not only continue to work within GE, but also allows us to expand with partners and to begin to seriously think about therapies and devices. And last but not least, simplification and optimization. We continuously look and optimize our platforming, our speed in taking cost out, and actually a simplification of our procedures. We did last quarter 35 lean events just in AVS, 35 Kaizen events. And I'll give you an example of what that means. One example is in France. We took a key component within our interventional suite, the key component, and reduced its cost in one working week. We came up with a plan to reduce cost by 20%. And we're going to realize that over the next 12 months. So getting next to key market trends.
To the left, you see 35% of all imaging will be ultrasound. Minimally invasive procedures continue to grow, and obviously the growth of AI and digital. But if you think about this integrated lab here, the product expansion, platform integration, this is actually what you'd see today in an interventional suite. And those are all GE HealthCare, more specifically AVS products. Now, in the creation of AVS, our goal will be integrating those easier so it's a more streamlined operating room as you go forward. Integrated care solutions, specifically around OEC 3D and BK. I'll give you a couple of examples. As we think about care pathway, just in the last 12 months, we've launched two new applications on our mobile C-arm 3D platform, one for spine and one for lung.
There's some very exciting news that we'll be sharing with you over the next couple of weeks with some large robotic companies. To the right, continuing to advance our AI and digital. This is an example here of Caption AI. I want to take a little bit of a moment and give some more context about why this is so important and what it is. Caption AI allows you to take a portable handheld ultrasound device with this AI element and enables a non-expert medical professional to actually diagnose what's going on within the heart. Why is that important? That's important because right now there is a big need for sonographers across the world. There's not enough trained sonographers.
Actually, people are waiting to get ultrasounds back because there's not enough sonographers. This now allows a non-expert trained medical professional to be able to do it. You'll be able to see it next door. It tells you exactly where to go within the heart to get the right measurements to make a diagnosis.
The second reason why this is important is if any of you are at TCT a month ago, a landmark study came out talking about asymptomatic heart conditions that should be treated now with a TAVR, and as you think about transcatheter aortic valve replacement, that could be very much a growth driver for the industry, but the structural heart physicians have the question, well, help me to diagnose this asymptomatic heart condition earlier. We can do that now with a handheld Vscan Air, so I just want to take a little bit of a thought process with you and hang with me on the journey. This is our Vscan Air SL. We just launched it.
So, two things are interesting about this and unique. Number one, a specific cardiac probe on one side. On the other side, a general imaging probe, ultrasound imaging probe. Now, imagine you walk into your primary care physician's office or your cardiologist's office, and instead of kind of working you up and hearing what's wrong, they actually pull this out of their pocket. This can happen now, and now you think about the improvement in what that means for a physician in the healthcare system. It means I could honestly begin to rule out a number of things in that first primary care interaction rather than guessing and then sending you on to CTs and MRs. I can do that here with this, so it allows greater access to care and allows a potential for earlier treatment.
We were pioneers in this product and continue to advance with a number of AI and recurring revenue streams. And to the right, we put it all together with an enterprise fleet solution we call Verisound, which really connects this whole ecosystem within the ultrasound, all the products we have within an enterprise to understand your fleet management, to understand and do collaboration, to then go ahead and do auto reporting and then use that data to drive greater insights and AI. An example here was actually a healthcare system recently that said to manage their fleet, it took them three weeks to actually manage and understand where their ultrasounds were and what needed to be upgraded.
When they implemented Verisound, it took seven minutes. Just in closing, we're not going to stop with what we've done to get us here today. But by putting AVS together, we believe that we can make hospitals more efficient, clinicians more effective, therapies more precise, and ultimately improve patient outcomes. Thank you very much. And I'll turn it over to the President and CEO, Tom Westrick.
Thank you. All right. Thank you, Phil. Good morning, everybody. As Phil mentioned, I run our patient care solutions business, or PCS. So good to see everybody again. So a reminder of what PCS is. It's our collection of technology solutions that support patient outcomes, help clinicians primarily in critical care. We're super excited about the future in PCS, and you should be too. So let me explain to you why. First, we have a very strong product leadership position in PCS and brand, which in critical care is extremely important. And we do it at scale, four million units in our install base.
As Pete mentioned, the accelerated R&D over the last several years has put us in an excellent position over the next several years as we have 10 key NPIs coming out that will leverage this large already existing install base of 4 million units. We will grow in recurring revenue. The adjacencies around our devices are significant, and they're growing fast. And our plan is to grow into these spaces. We have an opportunity and, more importantly, a plan to improve our margin by over 400 basis points over the medium term, primarily through the new product introduction, as I mentioned, and improvements in supply chain, which I'll talk about in a few minutes. So PCS at a glance. Look, it's an $18 billion market, growing roughly 4%-6%. About a third of that's equipment.
The other two-thirds would be the adjacencies and digital consumables and services that I mentioned, which are growing faster than the equipment markets. In 2023, we did $3.1 billion in revenue. It was an 8% growth to 12.2% EBIT. And you can see some of the data at the bottom of the page. It really speaks to the breadth and the scope and the ubiquitous nature of our PCS business, which is literally everywhere on the planet today.
So how do we win? Really comes down to is how do we provide information from our solutions, our devices, that help clinicians make critical decisions at that very point in time where it's really significant for the customer? And we help the clinicians do their job, ease their burden in an easier way. We do it through the businesses on the left. The Patient Monitoring or Monitoring Solutions Business, the Anesthesia Delivery , represent about two-thirds of the segment. Importantly, the digital solutions and the consumables you see at the bottom really support all of the equipment-related businesses throughout critical care.
So specifically, it starts with world-class contemporary smart devices providing the precise information, clinical information clinicians need to provide care. And secondly, how do we then use that information at scale to create digital solutions and improve operational performance as well as clinical support with our equipment to our clinicians? Turning to growth. Importantly, our growth strategy is really linked to the significant, loud, clear messages we get from our customers around the problems they face. What help us solve things like increased patient demand and complexity, a chronic shortage of doctors and nurses, which has really been going on for years with no end in sight.
And then there's a search for the data. Give me the data that I need now. What's specific and relevant to this particular patient that's timely, not too much, not too little? It's a journey. So what are we doing? Our growth strategy is cornerstoned on two major areas. One is transforming our patient monitoring business, which I'll speak to in a second. And secondly, it's to really accelerate digital solutions across not only monitoring, but across the entire critical care space. So monitoring. Our plan in monitoring is super exciting. It's to go from this historic problem of a device-centric, a care area-specific monitoring solution.
So it's really just the data between the clinician and the patient providing care linked to literally the equipment to more of a patient-centric flexible model where you can see the data across the entire care of the patient. It's not just linked to that particular patient, excuse me, that particular equipment. As the patient moves through the system, the data flows with the patient.
And also, importantly, is to apply machine learning and AI, as Pete mentioned, to get to more of a predictive enabler of clinical experiences, excuse me, of the patient's situation so the clinician can anticipate what should be done with the patient ahead of time. Super excited about this transformation into much more of a continuous flow of information to the patient. Secondly, related to patient monitoring, we believe there is a significant opportunity to extend our influence into proprietary parameters and sensors. So what's a parameter? Parameter is something you measure. So on a monitor today, all the parameters, vital signs, heart rate, et cetera, all that stuff is parameters.
There's really a long list of things you could add to the monitor that provides more information about the patient, helps the clinician, gets to this more predictive outcome, as I mentioned. And along with that comes sensors. Sensor attaches to the body, which again brings about the consumable revenue base, which we think is very attractive. And the second major growth there is our digital solutions and extending into accelerating to more care-specific areas, which I'll go to an example on the next page. So this is a good example of our digital strategy as helping to improve our outcomes in labor and delivery. So importantly, labor and delivery outcomes in the United States, perhaps surprisingly, are not where they need to be. The CDC recently reported that 80% of pregnancy-related deaths are actually preventable.
So we believe our strategy, which I'll describe in a second, helps to improve against this really tough metric. So first off, this strategy is super consistent with what Pete said and Tom was saying earlier on our D3 strategy. So it starts with a device. Remember, we have four million of those. The device creates a tremendous amount of information, which we have to create the capabilities that actually can use the information. And then secondly, or lastly, would be the insight or the support that comes from the data. How do you use that at scale? So what are we specifically doing in labor and delivery? So remember, first, we have a very strong presence in this space today. We have a very market-leading device portfolio that monitors mom and baby prior to delivery.
We have the consumables, which you can see in the picture with the sensors that are on mom. And then we have existing solutions today, which are using the data at more scale. How do we help the attending clinicians to manage a long list of patients, a long list of patients prior to delivery? How do you monitor mom and baby at scale? Those solutions exist today. But clinicians came to us and said, "We want more. We want you to help us more to analyze certain things about the fetal heart rate in this example and help us with the workflow requirements that come with managing patients in labor and delivery." So we work with clinicians. They gave us the insights, and we're super excited.
We have a solution pending with the FDA that we hope to release in early to middle 2025 that really helps to manage the fetal heart rate in a much more predictive and proactive way and improves workflow as it relates to documentation requirements in labor and delivery. This is a great example of how the devices, the consumables, and the data really come together that provide insights at scale that extend well beyond the traditional device that we've historically been selling. This is just one example. This is labor and delivery.
This example can be duplicated across multiple care areas. And remember, we've got the four million units in our install base. So we're already present in all these critical care areas that gives us the ability to do this at scale. Let's go to margins. So three main aspects to our margin improvement plan. Again, 400 basis point improvement over the medium term. The first is NPIs. Our plan is to double the NPI vitality over the next several years. I mentioned 10 new NPIs. There's 10 new NPIs coming out, key ones.
There's more than that. All of these come with better features, better functionality, which allows us to get price. And it comes with, importantly, improved manufacturability, contemporary components, contemporary processes, which lower the cost of products. Some of those obviously improve overall margins. Importantly, is to improve our supply chain with efficiency using Lean. Automation and footprint rationalization will reduce our annual operating costs by over $40 million over the medium term. An example where we've already done this, which is not in the 40, or already has occurred, is we've taken one particular product line.
We relocated it from one facility to the next, recognizing that we had a lot of improvement opportunities. We get a ton of Kaizens to really understand what's the most efficient flow of the product through the system. We doubled the two things. We doubled the output, the capacity of that facility with less people, and we took $10 million of operating costs out of that particular product in one particular year. We think there's multiple opportunities to do this, and then finally is the extension into the adjacencies around the device, which bring with it the occurring revenue stream and higher margin profile overall.
In summary, three things to remember. We do this at scale. We've got 4 million units in our install base, 4 million. The accelerated R&D has super supported this product line, and we're super excited about the next three years as the NPIs come through. Our growth and recurring revenue will come from digital, consumables, and ultimately services. As I mentioned, those are high growth areas in the market where we're really set up to play given our large presence in critical care today. And then our margin profile is a solid plan that improves our margin by over 400 basis points over the next several years, as I mentioned, through NPIs and through supply chain actions. So with that, I will hand it to Catherine, our President and CEO of the U.S. and Canada. Catherine.
Thank you, Tom. Good morning, everybody. My name is Catherine Estrampes. I am the President and CEO for GE HealthCare U.S. and Canada. I am really excited to welcome you today and talk about our strategic enterprise partnerships and really how what you heard this morning from the global segments is really coming together in those multi-year, multi-modality type of deals.
And as importantly, how the new commercial framework that we put together after the spin two years ago is really having a positive impact on our performance. But why is that important? Let's talk about the why. Why are those strategic partnerships, large deals important? They are because they are core to the growth of our orders and revenue, and they are core to the acceleration of our recurring revenue. And there are three takeaways worth pointing out here this morning. The first one is customers and market needs have evolved and continue to evolve.
There is ongoing consolidation, as you know, and it is being estimated that the top 150 systems in the United States actually represent 69% of the net patient revenue annually, which is up 3% over the past three years, and of course, with larger systems comes larger deals and also come C-suite leaders and department leaders at those places that really want to focus on solving enterprise challenges and looking for industry partners to work with them on that. The second element is we really have a unique position with the right portfolio aligned with our D3 strategy, with the right people and the new commercial models. On the right portfolio, you heard from the segments this morning about our unique offerings.
From a people perspective, our teams really have a deep technical, financial, and clinical healthcare experience that really positioned them very well to start those conversations at the C-suite level. And then our new commercial models. So what I am talking about here is creative financing offerings. It's flexible solutions. It's risk-sharing models. And starting 2025, the acceleration of our SaaS model. And then finally, the third element here is recurring revenue. Those partnerships are sticky because we are solving for our customers' biggest challenges.
And as a result for us, they really create revenue predictability. And why do I say that? Because actually, in those long-term partnerships, we are focused on servicing the customers, on planning with them for their future growth because we do not need to sell to them every year. They have already contracted with us on a long-time period. So, really, just to remind you here, we are pivoting from a predominantly selling equipment to really joint problem-solving with our customers for growth. Our global commercial at scale, so 10,000 commercial colleagues in 160 countries.
We are really where our customers are. We have 8,100 field engineers, which are servicing about 5 million pieces of equipment that serve 1 billion patients. And since the spin, we have contracted over 120 of those big deals for a value, and you heard Pete talk about it, of about $4 billion. So what we are doing is working. It's working well. And I will explain how we do it. But first, let's talk about the reality that our customers are facing. And without stating the obvious here to you, there are four areas of challenges. The first one is well-known. It's about labor.
We commissioned a global study two years ago that really showed that 42% of clinicians worldwide are considering leaving the healthcare industry. Think about it, 42%, and then at the same time, every customer we visit is still talking about huge labor shortage and personnel shortage in the face of increased patient volume, backlog of scan readings, and financial pressure. Second challenge is fleet. Equipment fleets are aging. The average age of the installed base globally is seven years. In the United States, that average age is nine years, which also for us is an opportunity for deploying our upgradeability, but why is this important as well from a customer perspective? It's important because the care delivery model is now also shifting to outpatient services, so they need to have the right technology in the right location.
And then finally, we are seeing increasing growth in programs such as oncology, cardiology, and neuro. And these are very exciting areas for us. You heard my friend here talk about the new targeted drugs, right? And this is exciting for us because it is creating more imaging demand. Now, put yourself in the shoes of a customer that has to implement or deploy a theranostics prostate program. These are complex to deploy, right? They need to think about workflows optimization. They need to think about staffing. They need to think about whether they have the right amount and the right level of technology to respond to the demand. These are complex types of programs. But this is when, as a company and where, we come in to really help them design and implement those programs.
And we really believe that we are the holistic partner to serve our customers facing today's and future challenges. So how do we do it? So this house here that you see is really a strategic framework leveraging Lean that we deploy to actually drive value in collaboration with our customers. And it starts with the customer at the top. We have to understand their strategies, their drivers, their plan, and their vision. Why? Because we are collectively and together designing with impact in mind. This is a real customer example. And you can see in the middle, we agreed with them to actually work on four collaboration areas, right?
And you heard Roland this morning talk about effortless imaging. This is perfect when you think about optimizing technology in a program. Think about AIR Recon DL . Think about workflow in this effortless imaging. You heard Tom talk about labor and delivery solutions, the next generation. This will be perfect for the design of a differentiated center of excellence. So these are two examples, if you would like, from our portfolio. Now, what matters to them in this case is the following. They want to reduce clinical variation.
Think about standardization of technology. Think about standardization of protocols. They want us to help them driving system integration, systemness. They want our help to help them deploy more access to care in the communities that they are deploying themselves into. And then, of course, they want a more connected patient experience. And so that's what's in it for them in this case. What's in it for us? It's really those partnerships are systematically helping us or allowing us to grow with new customers and/or they are allowing us to grow and expand with existing customers.
But in all cases, in all cases, they create stickiness and recurring revenue. So this is the menu of offerings, if you would like. So this is what we come to the table to differentiate ourselves. To the left, what you see is our approach. I have already covered some of those areas. It's important. We are taking a customer-backed approach. Why? Because we want a customized type of partnership. We assess their technology, their installed base. And we really deploy technology in a solution that are going to allow them to fastest scans, faster procedures, workflow improvement, and workforce solutions.
I mentioned earlier, we are also deploying, as part of the same menu, the opportunity to work with them on creative financing, flexible solutions, including risk-sharing models. And then finally, you heard it this morning, we also leverage our D3 strategy for them. And that means bringing to them integrated solutions that include imaging, AI, digital services, I mean, etc. To the right, you see the menu of our offerings, if you would like. And this is really how we are driving precision care through innovation and that holistic menu of offerings.
And make no mistake, that menu is poised to grow as we continue to invest in R&D and make acquisitions, as you heard Pete talk about it. These models are really resonating. And I wanted to share with you this morning three examples. Affidea is a very large pan-European company with whom we signed a $100 million technology solutions partnership. They have been a long-standing GE customer. In the middle is OSF. It's an Illinois-based healthcare system. And in the spring, we signed a $350 million ten-year partnership. And for them, it's really technology systems, digital tools, service.
But we also worked with them in the putting together and the deployment of their cancer center program. On the right, you see Hartford HealthCare. We signed a $200 million seven-year partnership or collaboration. And this is an expansion or renewal of a partnership that we already had in place. And for them, it's really non-obsolescence from a technology perspective and helping them as they deploy to more communities and more acquisitions on their side. So what I would like to do now is play a video clip of one of their executives interviewed at the day of the announcement.
Talk to us first about the care alliance between Hartford HealthCare and GE HealthCare. How did this come to be? I mean, this is a great day. Anytime that we can partner with a global leader like GE HealthCare in this way is remarkable. It's great for the patients in the state of Connecticut. But seven years ago, this is a renewed partnership. And Hartford HealthCare has made a significant investment in our imaging technology and patient care solutions. But seven years ago, our President and CEO, Jeff Flaks, really challenged us to move from a purely transactional relationship to more of a partnership. And we know that in partnerships, not only both parties have value, but really we can extract value for our patients. And that's exactly what we're seeing and that we will see in the future.
So you just heard it from Tom. We are successful because we are problem-solving together with them. And this is what those very large big deals are about. So in wrapping it all, this is why those partnerships matter. And we believe that they are going to be more and more important in the future. And why is it? Because it's all about market readiness, our unique portfolio, and our co-creation partnership in a model. I can assure you today that our portfolio, our pipeline is strong. Our pipeline is growing as we pivot from selling technologies only to joint problem-solving with our customers. And I encourage you to watch this space as we will have more announcements to come in the coming months. Thank you. And now I would like to pass it on to Carolynne.
Thank you, Catherine. So everyone, we will now take a 10-minute break, and then we'll resume presentations with Taha and the Science and Technology Organization. Thank you.
Please take your seats. Our program is about to begin. Please take your seats. Our program is about to begin.
Okay. We're going to start. Hi, everyone. If you could please come back and take your seats. We're going to resume the presentation with Taha and a discussion on our Science and Technology Organization. Please come on up, Taha.
All right. Good morning, everyone. Thank you for having me. And so, Taha Kass-Hout, I'm the Global Chief Science and Technology Officer for GE HealthCare. It's a pleasure to be here today. So over the next 15 minutes, we're going to cover a lot of ground. I will take you through how the Science Technology Organization is driving D3 strategy that Pete talked about and several of my colleagues here through AI and technology supported by investments in both cloud and SaaS, software as a service. And we are transforming healthcare globally, delivering precision care through innovation. The next era of GE HealthCare is going to be defined by our Science Technology Organization being in three ways.
First, as Pete mentioned earlier, our D3 strategy leverages AI and digital innovation to embed AI in every device with digital solutions that are tailored to each patient across their entire pathway from screening all the way through monitoring while addressing providers' data burden and operational inefficiencies. Second, innovation and collaboration propel our transformation. With tech industry partnerships such as Amazon Web Services and NVIDIA, they're accelerating our proprietary AI foundation models. Also, academic alliances that are boosting both clinical and operational outcomes and evidence. Our cloud strategy focuses on generating recurrent revenue through increased cloud adoption by our customers and also the SaaS-based models that we're introducing as solutions to this market. Now, let's discuss where we are today and where we're going. Today, at GE HealthCare, we have $1.2 billion of digital revenue.
Our long-term vision is to grow this digital revenue by 50%, that is enabled by a subscription-based model that's going to drive consistent revenue. We aim to accelerate our development of AI devices, enabled devices through by fivefold that is powered by building our proprietary foundation models, so just think about it. We're going from 80 in the last decade to over 200 in the next three years, and as we progress, every product that we launch in the market in the next eight years will incorporate AI technology. In addition, we'll be tripling our offering of cloud-enabled products by 2028.
Further, if you look at the last 18 months, we've made material investment also in top talent we brought to GE HealthCare. This is sixfold growth in people with cloud, data science, foundation models, Internet of Things, and SaaS experience from big tech, but these are missionaries. These missionaries came here to change the world and build solutions that are transformative in healthcare that is on the roadmap for our customers globally. Let's look at the market. AI and cloud adoption in healthcare is set for significant growth. The industry is leaping from today of manual processes into advanced AI quickly over the next few years.
Healthcare traditionally has not jumped into large-scale enterprise SaaS solutions as other industries have. So there's less to replace, which creates a huge opportunity for us. If we look to Gartner's forecast, their projected AI spending in healthcare could reach about $49 billion by 2027, with 15% of healthcare infrastructure spend going to generative AI applications by 2028. That's primarily driven by the cloud adoption. And this is attracting a 5% to 15% price premium for specialized expertise. That's just for the software and infrastructure market.
If we look at McKinsey's, they pointed out that the true opportunity here is in the $1 trillion hospital systems are spending today primarily on labor, and even with all that spent, they still cannot make up for the staff shortages, which is resulting in burden and overload, as you heard from all my colleagues, especially with Catherine, with the customer challenges, but if you look at this market capture, even a small fraction of this labor-saving market using generative AI would be hugely significant, so to realize this quantum leap in addressing customers' issues, we look at two major issues that are top of mind. First, the customers' data overload that they are facing every day. Second, is the operational inefficiencies that are draining their resources, and we are tackling these two challenges through a three-pronged approach.
First, we're speeding up the creation of new AI tools on our devices by fivefold with our proprietary foundation models. This is an important differentiator. Second, for every disease state, we're embedding AI throughout the entire care journey, from early screening to diagnosis to treatment all the way through to monitoring, and with our cloud-based SaaS offering, CareIntellect, we're simplifying AI and digital integration in healthcare, ensuring continuous updates and services. As Pete mentioned, this is our ecosystem to bring more AI for both clinical and operational efficiencies applications to the market, and through digital cloud offerings across the enterprise with Command Center, we are building advanced AI and predictive analytics to make hospital operations more efficient than ever before, so this, my friends, is our D3 strategy, so let's dive into the details.
First, as you heard from all my colleagues across all of the segments, we're actively integrating AI in all our devices, and we are increasing our R&D investment to ensure that's possible. First, we are bringing offline and on-prem solutions into the cloud. Second, our proprietary foundation models will enable more than 20 projects in 2025, making our devices even smarter. Our AI-powered devices are already delighting customers delivering quality care, like Shields Health, who had these things to say about AIR Recon DL. The CEO of Shields Health, as you can see, was impressed by these AI-driven technologies.
More importantly, for an operator, a clinical manager to say that they haven't seen this type of image quality and results in their 10 years in health system is purely astounding. We recently introduced CareIntellect, our ecosystem cloud-based SaaS offering that simplifies AI integration in healthcare. It allows for one-time integration with the customer's data sources using their preferred single sign-on application. This facilitates easy addition of new clinical and operational efficiencies. It also eliminates repeated costly siloed software integrations. This is a huge problem for a lot of our customers globally.
And with CareIntellect, it's as simple as adding apps on your smartphone in your pocket, which means constant customer adoption through updates and new features. This is very, very sticky. Additionally, our foundation models trained on diverse data sets is a unique differentiator. This is text, images, videos, and so much more, like waveforms, as you heard from Taha. This permits us to provide scale analysis of this complex multimodal patient data. Just think about the data that they collect throughout their lifespan from medical images, medical notes, lab results, echoes, waveforms, and much, much more.
This is very, very complex where today's traditional AI cannot solve for that. We're solving for this with our deep expertise and the new technologies we're bringing to these markets, where our customers, 97% of this data goes unused, which means it's not leveraged for patient care. But what this means in return for our customers now is faster patient intake and improved and enhanced clinical decision support. Our first clinical application in the CareIntellect family is CareIntellect for Oncology. The initial focus areas are prostate and breast cancer. We are evaluating with several early adopters in the U.S. today. It organizes multimodal patient data from siloed systems into a single integrated view.
Think about that as a single pane of glass that can leverage all this data and synthesize it to provide personalized options for each patient, using generative AI to summarize clinical reports. Furthermore, many of us have known somebody with cancer and where the last hope rested in a clinical trial that was seemingly impossible to find. For this, we are using AI to help our customers match patients to the right clinical trial at the right time. This is very important, where it's estimated that upward of 40% of cancer patients today miss trials that could have helped them.
Although we started in oncology, CareIntellect's common software and AI features allow for easy and quick expansion into cardiology, neurology, and other care areas, and even into operational efficiencies. Today in the tech show, we are going to demonstrate this with Chelsea, as well as with my colleagues who are going to demonstrate this. Customers' early feedback has been incredibly positive and encouraging that means to show us that we are on the right path. This is what Tampa General was very interested in implementing a solution for personalized breast cancer. They evaluate CareIntellect for Oncology. We're able to solve for this critical use case in just four weeks.
This is much faster than what would have been possible before. It would have taken them months or even years to implement and scale such a complex solution with their existing on-premises solution. Why? Because CareIntellect is built on a common cloud infrastructure that integrates with many of their resource systems. It provides a lot more AI differentiated features to solve for these problems. And as I mentioned earlier, it seamlessly integrates with their single sign-on application. For the enterprise, we are transforming the healthcare operations with AI. Our AI-enabled portfolio includes Command Center that is reducing length of stay through predictive analytics. Command Center is also common on the CareIntellect ecosystem.
Customers are getting real-time insights in a single view to manage patient flow and capacity. Just to give you a sense of operational efficiency across health systems that they are realizing, today, Command Center is installed in 300 facilities in the United States. Tampa General reported half a day reduction in length of stay, which resulted in $40 million savings and top-line revenue. Deaconess Health System improved capacity utilization, which resulted in serving 2,000 additional patients annually. Humber River Hospital in Toronto reduced length of stay by one day, which resulted in net new capacity of 35 beds without adding any physical capacity.
Looking forward, we are developing AI-enabled automated patient placement capacity management. And our goal is to predict issues days or weeks in advance, recommend solutions, and proactively solve bottlenecks. Now you'll hear from a few of our customers who are excited about what's coming ahead with GE HealthCare.
I am excited to be able to push the boundaries and to automate a lot of what we're doing right now in our Command Center. Our goal for GE HealthCare is to have patient placement automated in two years, and I'm really excited to partner with GE HealthCare and see that come to fruition.
We like to work with the best partner, in this case, GE, with everything that's happening and the innovation that's happening with CareIntellect. Really excited about what's possible, what's possible between us for our oncology patients doing clinical trial management or even the entire journey, the care coordination through the oncology journey and getting a patient to the end of that with a great outcome.
GE HealthCare is making the Florida Health Sciences Organization and TGH specifically stronger and more resilient and more highly reliable, like I said a moment ago. But it is critical to both of our long-term successes as organizations to partner and to get out of the transactional environment.
I've been in many enterprise discussions along with Peter and Catherine, where CEOs and CIOs are looking for a game changer, especially navigating the cancer journey. Today, most of their existing solutions are narrowly focused to address disease progression. Today, I'm excited to talk to you about Project Health Companion, which is part of the CareIntellect ecosystem. It represents one of our most ambitious pioneering AI projects to date. It is an industry-first application of multimodal AI agentics. Project Health Companion uses expert machine learning agents, each specialized in their care domain area, for example, radiology, genomics, oncology, or even insurance. These agents work as a swarm to work together, swarming together in order to synthesize the trillions of multimodal data points across siloed systems in real time to help providers take action.
For example, imagine if a clinician understands the difference between expected symptoms that are the result of a treatment from a symptom that could be an early sign or warning sign of a disease progression. Not only that, it could go a step further by alerting a care team with a personalized recommendation that's continuously learning and adapting to care team needs and as the data comes in in real time. Further, we understand the importance of trust, privacy, and patient safety. This is why we built Project Health Companion to meet the highest standards of privacy, security, and also explainability in healthcare AI. Pete also talked about beyond the ecosystem and how we're building the SaaS infrastructure to enable all this, to enable the recurrent revenue.
In 2024, we have been focused on developing infrastructure capabilities to enable SaaS, but also building the capabilities of our sales and marketing team to successfully launch innovative products that's going to drive recurrent revenue. Also, very important is one of the key customer needs is to evaluate these SaaS solutions and offerings before they buy, so try before you buy. We've recruited top talent from enterprise SaaS, cloud, and health tech with deep AI and machine learning expertise to take our products to market. This team is working backwards from our customer problems to build, test, and deploy cloud-first SaaS products that's going to solve their real problems. They're also training our field force in SaaS sales, implementation, and support, in addition to ensuring seamless integration with our customer technology environments.
Looking ahead, we plan to launch our first true SaaS products built in the cloud in the first half of 2025. We plan to boost our capabilities in SaaS commercialization next year. And we plan to grow this to more than 40 products by 2028. And as we commercialize our new SaaS products, the SaaS models will allow healthcare providers to test and access these products more readily versus the traditional upfront cost associated with CapEx model. So in essence, we are shifting our revenue model. Partnerships, as I mentioned earlier, are very critical. And as we all know, pushing the boundaries where it's possible in healthcare takes a team effort.
And we're honored to collaborate with Amazon Web Services and NVIDIA to develop cutting-edge proprietary foundation models. Mass General Brigham to integrate medical imaging foundation models into their AI research. Vanderbilt University Medical Center to predict potential side effects before immunotherapy treatments even start. The Bill and Melinda Gates Foundation to create user-friendly AI-assisted ultrasound imaging guidance tools. Now, we've covered a lot of ground here. We are transforming healthcare globally, delivering precision care through innovation by first building AI and digital solutions to enhance devices, transform the care journey across the entire disease state, and vastly improve operational efficiency.
Second, pioneering with leaders in tech and academic and healthcare and partnering with these partners to really kind of move the needle. Third is implementing recurrent revenue models that are powered by SaaS and the cloud. And as I heard from Catherine, we're laser-focused on customers' problems and needs to deliver differentiated and compelling offerings. We have the expertise, the track record, and the vision to build and deploy the next generation innovation to drive healthcare industry forward. Thank you. Now I'll hand it over to our Chief Financial Officer, Jay Saccaro.
All right. Thank you very much. Great presentation. Thanks to everybody for joining us. We really appreciate you taking time out of your day to learn about our company. I know we have a lot of our large holders here as well. We very much appreciate your confidence, and I hope you all walk away with a sense of confidence in the strategies that we've outlined and what we intend to do in the coming years. If we go to the next slide, yeah, thank you. Overall, Pete shared a framework. He said there were four areas for us to focus on. In the presentations that we shared today, we outlined specific elements that support each of these four components.
It starts with developing leadership products. Crucially important, you heard us talk about innovations in MR, photon counting. You heard about continued advancements in our ultrasound portfolio. Tom highlighted a number of new and exciting products. All of these are essentially important, and we've been investing behind them substantially over the last few years. We've had a number of folks talk about how we're focused on optimizing our business margin.
We're intensely focused on increasing the profitability of our business. We've made good strides, but we have a lot more to do. We talked about Precision Care. Taha did a wonderful job walking us through all of the elements in the Precision Care story, and then we've talked a bit about this idea of changing the profile of our business, tilting more towards recurring revenue. Now, as it relates to innovation, I'll talk as we go through my presentation how items one and three on this page add 100 to 200 basis points of growth compounded in the coming years.
All of this translates to a compelling value creation framework. It starts with durable end markets with leadership positions and innovative products that drive revenue growth. We add to this this focus on business optimization. You've heard a number of our presenters talk about this idea of lean, this lean culture that we have in place. That's helped us over the last couple of years. But in my mind, it's going to pay even larger dividends in the coming years. Our entire company is focused on robust free cash flow generation. We're very pleased to update today our free cash flow targets. And then finally, all of this presents us with a really interesting capital allocation opportunity. We think in combination, these elements paint a very compelling financial picture for years to come. So how have we done so far?
When we introduced our company to many of you in this very room a couple of years ago, we said our hope was to deliver mid-single-digit revenue growth. Well, in the two years since the spin, we've compounded at 4%. 8% last year, 1% to 2% this year. We're seeing the low end of that range, compounding at 4%. We said we aspired to an adjusted EBIT margin of high teens to 20%. In two years since the spin, we're up 130-150 basis points. And we also said we targeted free cash flow conversion of 85%. Well, last year we did 95%. And this year we expect 90%. So from a financial metric standpoint, we're proud of the start. It's allowed us to do a lot from an organic investment standpoint.
We've invested. All of the slides that you saw today are underpinned by a significant investment in R&D. We expanded our R&D investment. We've invested $2.2 billion since 2022. We've also bolstered our portfolio through incremental M&A, spending $500 million on M&A over four deals over the last couple of years. In addition to that, because of all of this free cash flow, we're able to rehabilitate the balance sheet. We paid down $1 billion in term loan at the end of last year and the beginning of this year, really putting us in a very nice spot as we look at our credit rating and future business development opportunities.
And then we've returned a bit to shareholders in the form of a dividend, which we increased 17% today. So from my perspective, it's so far so good, but so much more to do. If we go to the next slide, let's talk just for a moment the full picture of revenue. This is a trailing 12-month view. And what you can see is on the left-hand side, it's a diverse business from a segment standpoint. Now, on the one hand, we report four segments, but there are probably 20 products that generate each over $100 million in our portfolio.
Very diverse product portfolio. On the right-hand side, we report in a few different regions. You can see them here. But the reality, again, is a little bit more nuanced. We sell in over 100 countries around the world. So it is truly a geographically diverse portfolio of sales that we have. And then in the middle, you can talk about the mix of products and services. Today, it's about $13 billion worth of products. And the residual is services. This is an area we are focused on growing. This idea of enhancing and contributing to recurring revenue is an important strategic area of focus. And you no doubt heard that in many of the presentations earlier today.
As we think about the health of our business, I talked to a lot of folks about, hey, is it book to bill? Are you more focused on organic orders growth? What are you focused on as you measure the health of the business? From my perspective, I look at three different metrics. The first, I look at this book to bill ratio. And over the last 12 months, our book to bill is 1.04 times. What that means is orders outpace sales as we calculate it by 4%. Now, it's important to note that as we do this calculation, services in our PDX business come through at one to one.
What that means is our equipment book to bill is higher than 1.04 times. From an organic orders growth standpoint, I will tell you 2% orders growth in the face of a very challenging, perhaps uniquely challenging market dynamic in one of our largest geographies, China, is a pretty good performance. Excluding that impact from China, we see 4% organic orders growth. And then finally, backlog, a critically important metric for us. As we sit here at the end of Q3, $19.6 billion is a record backlog for our company. It's the highest we have seen. So all of these dimensions kind of support our view that the business and the environment is a healthy one. As we think about our targets over the midterm, we expect compounded mid-single-digit growth from 2024 through the midterm.
Now, in 2024, we're looking at 1% to 2% growth. We've said on the lower end of that range. Now, as we look at this compounded growth rate over time, one of the things that will happen now, the timing of this is an open question and one we're looking at very carefully, is the markets will normalize. And primarily, the market in China will normalize. We believe that the market growth rate this year is 150-200 basis points below the normal market growth as a result of dynamics that we've seen in China. You heard Catherine talk about a lot of the tremendous work that we're doing from a commercial organization standpoint. I would contend, and we believe, that our commercial organization is a competitive advantage for our company.
Through execution in this regard, we believe that we will add 50-80 basis points over time through strategic partnerships, much of the great work being done there. And then finally, from an innovation standpoint, tremendous excitement. During this midterm time frame, our R&D investments start to pay off in a profound way, driving 100-200 basis points of incremental growth over time. In summary, as we look out over the next several years on a compounded basis, we anticipate mid-single-digit organic growth. What does that 100-200 basis points really mean from an innovation standpoint? There are a few elements in play to highlight.
We're so excited about the work that Kevin and his team are doing with respect to our PDX business: Flyrcado, DaTscan, Vizamyl, Cerianna. All of these are groundbreaking new imaging agents. We are so excited to accelerate into the market. They're going to contribute to accelerated growth in the midterm. The idea of closing the gap in the portfolio that we have today, photon counting, MR, et cetera, all of these items help also contribute to accelerated revenue growth over the midterm.
Then finally, and I would broaden this to say software as a service plus digital, including some AI, will also add and accelerate our growth by 30-40 basis points. Importantly, these are midterm expectations. My view is that longer term, this SaaS column, this digital column becomes a larger component of overall growth. But we've snapped the chalk line in the midterm, meaning we sort of cut off expectations beyond that. I think some of the great promise of these initiatives lies outside the windows that w e're looking at.
If we move to the next slide, just for a second on this digital area, our expectation today, we sell about $1.2 billion. And some of it is AI-enabled devices, things like AIR Recon DL, things like Sonic DL. Tremendous excitement around what these products can do for hospitals around the world. Over the next several years, by 2028, we anticipate this area, this pool, growing by 50% from $1.2 to 1.8 billion. So approximately $600 million in incremental revenue coming from the area of digital. Again, these are the investments that Taha talked about.
And again, the opportunity, I think, is even more substantial beyond this time frame. But as we look in the midterm, it will be an important driver of what we're trying to achieve. As we think about EBIT margin, this is one area I have to say we're very proud of the progress. Particularly, you think about it this year, in the face of unforeseen, unplanned revenue dynamics, we were able to drive margin expansion, and so over the first two years since the spin, we're talking about 130-150 basis points of margin expansion through things like pricing, variable cost, productivity initiatives, G&A optimization.
All of that hard work yielded results. We're making progress, and as we look forward, we see high teens to 20% plus. Now, for us, the plus was important, and I know for other people, maybe it just you kind of look at it as 20%, but for us, we believe the performance on margin is outpacing our expectations, has outpaced, and leads to greater opportunity, so this idea of over the midterm delivering high teens to 20% plus is something we have confidence in. As we think about it, there are a few drivers.
It starts with growth and innovation. As you add revenues, it typically absorbs. So that's a good thing. But beyond that, when you launch new products that come at higher prices and lower costs than predicates, it has a natural mix uplift to your business. Net productivity initiatives, all of the work. Phil gave us a number of examples. Roland talked about this idea of productivity initiatives. Tom, the same. All of those will continue to drive performance. We'll add 200-300 basis points as a result of these productivity initiatives. G&A optimization, we've made a lot of progress here. I will tell you, getting off TSAs, getting to stand alone is no small feat, and we'll talk in a minute about how many TSAs we've exited and the fact that we are so close.
By the end of the year, our expectation is we'll be principally done with TSAs, allowing us to unlock incremental savings from a G&A standpoint. Now, we're not returning at all to the P&L. It's crucially important that we continue to reinvest in the business. And so you see 150-250 basis points of incremental reinvestment in the business. R&D will grow slightly faster than sales for the coming years, not at the pace that we've seen, but a little bit faster than sales. We'll continue to invest strategically in critical capabilities from a sales and marketing standpoint. But in short, the picture is a pretty good one as we take the margin from this year, 16%, to high teens to 20% plus in the coming years. And let's talk for a minute about two of those areas: net productivity.
So this is about things like simplifying your portfolio, reducing the number of configurations, reducing the number of suppliers, driving cost out. This idea of platforming is one that's paid dividends already. We've reduced our CT premium and performance product configurations by 50%. A big reduction allowing an improved cost position. Now, by the way, we didn't limit customer choice by doing this. So customers still have available everything they need from a product portfolio standpoint. It just simplified our cost structure. As we look forward, MR is going to have the same treatment, reducing the number of platforms from five to two. It's hard to optimize five platforms. It simply is.
Two, it's a lot easier. And we'll also have a reduction in platform components. From a variable cost productivity initiative, the expectation is to drive mid-single-digit improvements in variable costs for each of our product families. A lot of work to do here, a lot we've done already, and we'll continue to do that. We've improved logistics, and then now we're looking carefully about how do we reduce service costs? How do we improve remote-fix ratio?
How do we use AI to enhance deployment of our teams as we look at fixing and servicing our equipment? Really big opportunities, and then on the right-hand side, you can see we'll have opportunities with organizational simplification. And it's enabled by this TSA exit. We exited 388 TSAs, so proud of the efforts of our team in this regard. And it really positions us well to do things like enhance IT costs by reducing applications. Because, by the way, if you have a TSA for an application, you can't do anything with it.
You have to eliminate the TSA, and then you can make your decisions around what kind of applications you want to have in place. A lot of work done there. As we look at structural optimization, we will have opportunities that are presented to us in finance and IT and real estate and other areas that allow us to further unlock some of this G&A that I described moments ago. If we move to the next slide, how does it shake out by business? I think that the story is pretty good for each of our businesses. The equipment businesses will, generally speaking, grow in line with the corporate average. And our PDX business will grow a little bit faster based on all of the work that we're doing from an innovation standpoint there.
And from a margin standpoint, I will point out that there is a change since the last time, but it's really a left pocket, right pocket. We moved one of our businesses from imaging to AVS. We did so for very good and strategic reasons that Phil talked about. But what that does is it lowers imaging margin. So now we aspire to this mid-teens, which is a very substantial basis point improvement that Roland walked us through. But that's the only primary difference between this version and last version. Our AVS business, we expect mid-20s margin. Our PCS business, we expect mid to high teens. And our PDX business will continue in the 30% plus range.
So overall, we have really nice stories for each of our businesses, both from a growth standpoint supported by the innovation that you saw today, along with a margin improvement standpoint with all of the activities we have ongoing. And as we think about free cash flow, if you were to ask what's the one metric that the entire company contributes to, free cash flow is the ultimate team sport metric. Everybody here, everybody in the product fair you'll see later on contributes to this crucially important metric. Our free cash flow pre-spin was $1.8 billion. We added several hundred million dollars worth of spin-related costs, TSAs, financing, et cetera. And yet, despite that, we delivered $1.7 billion in 2023. We had previously expected 85% free cash flow conversion.
Because of all of the work we've done on working capital optimization, on CapEx optimization, on really scrutinizing every spend dollar, we were able to deliver 95% free cash flow conversion, $1.7 billion. And as we looked at this year, despite continued spend dollar outflows, we'll deliver $1.8 billion with 90% conversion, giving us confidence that as we look forward, we'll be able to maintain this ratio, which I think is a best-in-class ratio as we look at some other folks in med tech, really solid continued performance in this area, allowing free cash flow to travel with earnings in a positive direction. And it gives us a really interesting opportunity, as I said, from a capital deployment standpoint. As we think about capital deployment, it starts with reinvestment in the business. We have deployed a lot to R&D.
In fact, we had unplanned spend in R&D last year because we saw incremental opportunity. As we look forward, we will constantly challenge ourselves to invest as much as is reasonable in the area of R&D, $2.2 billion since the spin. The second port of call is M&A, strategic M&A. We are really focused on adding things where we're the logical owner. We've deployed about $500 million. We've executed a number of strategic partnerships. We've closed four deals since the acquisition. This area will be one where we pick up pace in the coming years. We've returned cash to shareholders. I'll point to the dividend released today, 17% increase.
And we're really focused on maintaining a strong balance. Look at the credit metrics today. We feel very good about the progress that we've made and how it supports the solid investment-grade credit rating that we have. Now, as we think about business development, Pete talked about some of the general strategic elements we have in play. But I'd like to add to that a few financial criteria that we like to consider. We expect that the targets that we are looking at accelerate the growth of our company.
So entering faster-growing markets, having products that grow fast, all of these things are core components of how we think about targets' attractiveness. In the near term, we want our targets to have EPS accretion. Really important to us is this idea of ROIC, where we want to see high single digit by year five. And then finally, we wanted to enhance the recurring revenue contribution. And that's just an important dynamic shift. Over time, we will tilt. We want to tilt the business more and more to this recurring revenue.
M&A is a real opportunity to do that. Now, none of these are hard and fast rules. But as you look at the deals that we do, these will be criteria that we'll be evaluating them against. And I would say, furthermore, for us, being a logical owner of an asset becomes really important as we think about our ability to drive success. If we're the logical owner, frankly, all of the dimensions are less degree of difficulty and higher probability of success. If we move to the next slide, to summarize, we're expecting compounded mid-single digit revenue growth starting from 2024 over the next several years. We expect high teens to 20% plus adjusted EBIT margin.
We are now, for the first time, introducing an EPS growth target, high single-digit to low double-digit, compounded over the next several years, and free cash flow performance of 90% plus. Now, one note. On the EPS, we are not assuming capital deployment. What I mean by that is there's no assumption of share buyback, deployment to M&A, or deployment to debt paydown. So all of those things, if done well, represent opportunities for us. If we move to the next slide to close, we're proud today to reiterate the full year 2024 guidance as table stakes, but more than that, to update the midterm guidance. We've made a lot of progress, but we have a lot more to do. All of this is underpinned by innovation and commercial execution.
If you walk away with anything from the presentations today, I hope you're compelled by the innovation vision we're sharing. And I hope you also take a few minutes to visit the product fair to see some of the exciting innovation in action. And finally, I think we have a very compelling capital allocation opportunity. As I look at it, we will be generating billions of dollars, and we have the opportunity to deploy it in a very smart way. In short, we're committed to the medium-term targets we've put together, and we believe that our company represents a real value creation opportunity going forward. At this point, I'd like to invite Carolynne up to set the ground rules for the next discussion that we have. Carolynne?
Thanks, Jay. Okay, we're going to start a Q&A session now, so we'll invite our team of presenters back up onto the stage. We've allocated about 35 minutes for the Q&A, and you'll see that we have mic runners on each of these sides of the room, but also in the middle, and we're going to take one question per person. Please state your name and firm, and then if we get through everybody, then we'll go back around again.
Is that where you're at?
Yeah.
A lot of hands up.
All right.
We have mics on each end? Great.
All right.
Okay, so let's get started here in the front. Ryan, I saw your hand go up first. So let's go ahead.
I appreciate Jay stating the ground rules .
The Q&A here Ryan Zimmerman, BTIG. So I'll ask the first question on the long-term targets. Jay, you made a few comments about China, obviously a critical swing factor. Maybe you could elaborate on kind of what's baked in for your assumptions on China in those mid-single digit targets. And I do have a follow-up, but I'll refrain as.
Thanks for the discipline. So look, long-term, we believe China is a very solid market for GE HealthCare. And we've been there manufacturing for 30 years. We've been selling there for, I think, over 100 years. Our products have been in China. So it's been a strong market for us long-term. We think it will continue to be strong. As we look at this midterm, we've kind of included China as a mid-single digit grower over the term of the expectations that we've shared. Could it be more? Certainly could be. But as we've looked at the dynamic and some of the volatility there, we've really tried to model it in those kinds of terms looking forward.
Yeah, I think you covered it.
Okay, Anthony?
Anthony from Mizuho. Thanks for all of the updates. Great presentation. And congrats on the strong performance post-spin. Maybe Jay, just on the leading indicators, backlog exiting September, $19.6 billion. Your book to bill 1.04, but if we take out service consumables, it's higher than that. And you have this mid-single digit growth rate. So how do we think about the leading indicators, backlog, book to bill, and orders? How should those trend through 2028? Will they sort of coalesce to that revenue run rate? Thanks.
Yeah, I think there's a couple of things to keep in mind, right? So first, that book to bill and the backlog and orders growth, a lot of that is related to our equipment business. Now, there is service in the backlog, but a lot of it relates to our equipment business. And so you really have to sort of decompose our business into really two pieces, the service and PDX and the equipment. And as you look at service and PDX, which is roughly half, we have very different dynamics there. In the case of PDX, I think it's probably some of the most promising growth prospects that we have.
And then from a service standpoint, it's about attachment and a lot of the great work that Catherine described. Now, as we look at the equipment business, over time, we'll expect orders to continue to outpace sales. So that will be something that we'll expect to continue to see on a blended basis over time. But of course, in any given quarter, there's volatility. In a given quarter, you might be short, you might be long, but generally speaking, over time, we'll expect it to outpace. Pete, I don't know if you'd add anything to that.
I mean, we're in a good spot here ending the year, $19.6 billion backlog, as Jay said, 1.04 with one of our largest capital markets being suppressed and still putting up 1.04. As you guys know, as Jay said, you take out PDX and service, which are one to one, that number's higher than that. So I mean, I think from that standpoint, we feel really good about it. And then again, you start having these new launches that we've talked about, in many cases, fill gaps where we've actually had a probably not as competitive product being replaced with a very competitive product. And then also moving into spaces where we'll have clear leadership differentiation. That's where you're going to see that pick up.
Robbie, you have a mic.
Thanks. Robbie Marcus, J.P. Morgan. I'll echo. Thanks for the presentation, the great detail today. I wanted to ask as it relates to the incoming administration and GE HealthCare. Back in last time Trump was president, you were part of GE, and they called out tariffs as a headwind for the GE HealthCare organization back then. How do you think about the impact of tariffs and potentially a stronger dollar and your ability to mitigate currency through natural hedges going forward? Thanks.
Robbie, I'd love to get your take on it as well. I mean, look, not to speculate, because I think as we all know, how these could come to bear could take many different forms and substance. I don't want to estimate, but to say, I think you guys all know, the original tariff structures are still in place, right? They were carried through with the Biden administration. We pay some tariffs from some products coming back from China today that we're sitting there today. Countries like India and others have had tariff structures. That's a construct that we operate in today. I would say what's different is the COVID experience, I think for us and as many companies, kind of changed how you thought about your global footprint.
I mean, we were a company that tried to get the best value at one location and then ship it all over the world. And I think you guys know during COVID, the transportation costs got to be to the point that they cost more than what you were buying. And so over the last four or five years, we've really diversified a lot of that capability. If you think about MR, in the early COVID window, we were shipping all our magnets out of one facility in North America. Now we have Southeast Asia, Asia capability, and North America. And so depending on the mix one way or the other, we would flex. PET is a good one as well.
We were only making in Europe. We now make in Wisconsin. That's just as of the last year. You can't cover all the bases, but a big part of our strategy is to be able to have that flexibility. We see what cards are dealt, and we try to obviously manage and adapt the best way. But I would say I would take our hand as far as our global footprint to be able to adjust to that as being in better shape than many other companies that are out there.
Okay, let's go to Vijay and then David.
Vijay Kumar from Evercore . Pete and Jay, thanks for hosting the Analyst Day. One on the LRP assumptions here. Key things here are China, Flurpiridaz. When I do the math on Flurpiridaz, it looks like you're assuming sub 200,000 patients being treated by 2028. That's sub 2%, I think, penetration, right? That seems pretty low. I'm curious what drove those assumptions in China. Pete, your mid-singles outlook for China, is that in line with the market? How is GE HealthCare positioned comparatively in China? Are you gaining share, losing share, holding your own? Thank you.
Yeah, maybe I'll comment on China and then let Kevin talk about it. By the way, it was a very nice job.
Yeah, it's a double question.
That was good, but they're both good ones.
It's a warning.
Look, I think from a China standpoint, this point about having mid-single digit outlook, I think at this point in time, we just viewed it as the more appropriate, prudent way to kind of lay out how that guidance is going to look. I think in the near term, nothing has changed from what we had told you from four weeks ago. In fact, I left that Friday after we spoke, and I spent a week in China with our teams, with customers at the international expo that was there, and fundamentally came away with not really any significant changing views. I think the point about how that market is going to evolve, we see lots of good discussions about a spend coming, but the initiation is still not changing from what, again, I said a month ago.
So this idea of first half being sluggish, we see how second half goes. Again, as we look forward in a market that has a lot of potential, but there's lots of things going on in the world. Robbie's question, we think mid-single digits is reasonable. So that's kind of how we framed it. Obviously, we would love to be more surprised in a positive direction, but we think that makes sense. Kevin, maybe on Flyrcado.
Yeah, no, if we update on Flyrcado, as I shared in the main presentation, look, we're super excited about the launch of Flyrcado. We're getting ready now, setting pricing, building out the CMO networks and such like. As we go to market, we'll be segmenting the market. There's existing rubidium users who will be looking to transition to Flyrcado over time. There'll be nuclear cardiologists who don't use PET today but have access to a PET scanner in their hospital.
And then there'll be cardiologists who are looking to deploy PET as well. And we're looking at all three of those opportunities. When it comes to the scale of the opportunity, what I shared is $500 million plus by 2028. We're obviously targeting to ensure that patients get the maximum access to this agent, and working with my colleagues here, Roland and Catherine, to build out the infrastructure across the healthcare systems to maximize that opportunity.
And I would just add, I mean, look, we want to be balanced. This is a big ramp, obviously. If you do just the math, you say, boy, the numbers could be significantly bigger. You can imagine my discussions with Kevin. But the reality of this is that you need more equipment ultimately in place. It's a radioisotope. It's not something you just ship out however. We know how to do this well. You want to do it the right way because if we can deliver and convert folks, this isn't like a one or two-year growth. This is something that you build a trajectory off of. And once you start buying radioisotopes from a given supplier, as you add other ones on, it doesn't make sense to have multiple different players.
The more you can actually bring more of an integrated approach to a customer, you can do it right, so we want to do this right. We want to make a significant difference in reimbursement change, clinical differentiation of the drug, and the predicate products actually that are out there just aren't that easy to use, meaning Rubidium. We have seconds to use it before you deliver it, so all that comes together, but obviously, we'll give more updates as we go here and we start the launch at the end of Q1, right?
Just, I want to add, just as a retired interventional cardiologist, before all of this, you're just kind of looking at the images and looking at the evidence was 20% better accuracy. Now we need to do this both at rest or by exercise. So you need two images. Definitely gain a lot better view about how is the heart being perfused with blood than anything else we've done before. The standard of care is going to evolve over time with this clinical evidence. We're also working with our clinical partners and KOLs to generate that. That's going to also add to that ramp.
David?
Thank you. David Roman from Goldman Sachs. Maybe you could go into a little bit more detail on the pharmaceutical diagnostics business. And specifically, Pete, on the last call, you talked about the broader ecosystem that GE HealthCare can provide. So can you just help us break that business down between drivers like the radiopharmaceutical side, then also the capital and related drivers? And similarly, I want to make sure I understood the reimbursement comment that you're going from $1,500 to 4,500. So how does that flow through specifically to GE across the broader PDX portfolio?
Yeah, I'll just maybe frame up, but I mean, we got the two experts right here, so I'll let them comment on it. But again, at the reimbursement level, and then Kevin used the Cerianna example, you have a lot of customers who would talk to us to say that that imaging differentiation for this type of metastatic breast cancer clearly gives a better answer on where your next steps are or how you triage, but I'm losing money or I'm not making any money on this. And obviously, clinical outcome coupled with economics is super important.
The fact that this moves into a scenario where a customer can now actually make money on the procedure at a minimum break-even on a scenario where before they literally lost. I mean, the product was still sold at a couple thousand dollars and they only got reimbursed $200. That alone is a big deal. The other side is having multiple molecules that you're shipping in. Again, they're radioactive tracers. They have a process. Now you can hire people to help manage those coming in. You start thinking about other equipment you need. It just changes your paradigm about how to use it as opposed to having maybe one or two molecules. So go ahead, guys.
Yeah, maybe I'll just give an example. I mean, I gave the example earlier around Vizamyl and the Alzheimer's care pathway. You've got to identify the presence of beta-amyloid in terms of access to the therapy. And there's two ways of doing that in the hospital today. You can do a lumbar puncture, which is a highly invasive procedure but lower cost, or you can do a PET scan, which actually gives full quantification and you can visualize the amyloid. Today, the hospital may choose to do the lumbar puncture simply because of the lower cost because they're not being reimbursed for the diagnostic pharmaceutical. Tomorrow, that won't be the case. And we're expecting those more invasive procedures to move to the much higher resolution PET imaging.
Now, at the same time as I shared, that gives confidence then in terms of reimbursement, more certainty, which I think will drive pull-through in terms of the equipment where Roland and the team are heavily focused now in terms of upgrading the installed base and the positioning of new cameras. So maybe Roland.
Yeah, no, exactly right. I mean, as I explained, our portfolio in molecular imaging on a system standpoint, right? Again, think about it this way. We enable customers through all their needs, right? Essentially providing cyclotrons in different axial sizes and performance levels, which are needed to produce these radioisotopes. Then in the world of PET, there have been multiple generations of products. Our most recent product platform called Omni has been enormously fast accelerated over the last 18 months, more than 100 systems in the United States alone.
And that technology allows to be scaled. It can start with a 16-centimeter detector field, which can be used for myocardial perfusion, and then be extended in fields with customers to 32. And you saw it, Pete showed it in a roadmap. We are working on a total body version of this, which goes all the way to 128 centimeters. So for customers, it means they can, as they expand with other radioisotopes and pharmaceuticals, they can also upgrade their fleet over time and that way really grow with these new indications, right?
And then in addition, as I said, we provide all the software tools which are key to do these procedures efficiently with the lowest possible dose, but ultimately with the right level. And in that sense, the MIM acquisition helped us greatly. So we have, in other words, just strengthened our total suite enormously with Omni, with MIM, and with the introduction of Flyrcado. So we are very excited about the opportunity, the game-changing opportunity the reimbursement as well brings going forward.
If I may add as well, there is not one conversation at the C-suite of those very large healthcare systems where radiopharmaceutical and those programs such as Alzheimer's, Theranostics, I mean, et cetera, are not part of the agenda. When they are consulting with us on how we are going to collaborate, not only from a radiopharmaceutical, but also from a technology perspective, installed base, I mean, et cetera, to help them from early detection of the disease down to monitoring of the impact of the therapy. We do believe that there is a very large collaboration to be made here.
Joanne?
Thank you. It's Joanne Wuensch from Citibank. I appreciate the 2024 reiteration and the 2028 sort of goal, but I'm trying to bridge from here to there. Specifically, I'd love a 2025 comment if you can give one. And I'm thinking expense management over the next couple of years, can you give operating leverage next year if your revenue growth next year is another low single-digit type of delivery?
So thanks for the question. And one of the things I would say that we're really proud of this year is despite the fact that we're growing 1%-2% towards the lower end of the range, and despite the fact that a lot of that was based on an unplanned situation, because it's always harder to get margin expansion when plans don't go according to your expectations, we were able to generate robust north of 50 basis points margin expansion driven by price, all of the productivity initiatives, continued work on SG&A. And so I think that's a testament to the tremendous work of the team. As we look forward and as it relates to 2025, we'll give guidance in February on our earnings call for 2025.
And frankly, we will take every day between now and then to watch the dynamics in some of our critical markets and take a cautious point of view when we finally do give guidance or conservative, I should say, because for us, it's a very dynamic environment, in particular in China. We've got a good capital backdrop in the United States, but China, it's still a question mark. So we're watching very carefully. We've said we'll expect limited impact in the first half of the year from stimulus. And so that's a big wildcard for us. We're going to wait to assess that and get as much information as we can. But frankly, I believe that we have the opportunity to drive margin expansion against a whole wide swath of revenue scenarios.
So we feel very good about what we're doing from an operational excellence standpoint, from a pricing standpoint, execution standpoint. So we put that on full display this year. But I think as we go forward, that will be something that we'll continue to point to. Pete, I don't know if you'd add anything.
No, I think you've hit it. I think obviously next year, as we've all communicated, the ranges on growth could be variable based on one large country as part of that. But our commitment and our visibility on the ability to deliver margins is clear, even within those ranges we talked about.
Okay, we're going to go to Rick and then Larry. Sorry.
Thank you for the question. Rick, Stifel, T he pipeline comments today in general were really impressive and exciting. I hate to focus on just one. It's hard to. But Roland, you had really encouraging comments. I thought about the photon counting CT, the timing. Can you talk a little bit more about the Deep Silicon benefits versus the competing product? And should we be worried about competitive CT pressures until you bring that out? Is that a risk? And last, just as part of that, is there actually a benefit to going second and you're smarter about how you can make yours even better and more competitive? Thank you.
Three great questions in one. Thank you for that. And really, as I said, I would start with the point of our CT portfolio, as I laid out today. If you think about CT, the whole CT market, there is a big need for high performance, also high throughput CT in the U.S., maybe 40 to 60 patients a day and some other places, 100 patients a day. So for those kinds of applications, I mean, we have a world-class portfolio today. We have a leadership position factually in CT. We did gain share over the last years. So in other words, there's clearly a large penetration towards the needs of customers. And you heard all these innovations with AI, et cetera. Now, when it comes to photon counting, it is, relatively speaking, still early days.
Photon counting has not proliferated very much from the, say, top academics, which are obviously early adopters and research and provide certain insights towards the broader base, and in that meantime, we have made substantial progress. We have over the last three, four years, essentially our history goes back. We worked on cadmium like 10 years ago, but we have fast iterated over the last three years. We are today working with Stanford University, with Karolinska in Sweden, with the University of Wisconsin on humans, on human subjects, iterating further and ultimately working on the proof of the promise that deep silicon-based photon counting can ultimately deliver strong spectral imaging in levels, 8-beam levels, which we have not seen before.
So there is a significant promise out there, the promise gets reconfirmed, and in that sense, we get ready to and much closer to ultimately introduce this offering. I just reiterate as it's important, we are planning. We are currently foreseeing to file for regulatory approval in the second half of 2025 and then soon following commercialization in 2026.
Yeah, the only thing I would add, Rick, is I mean, look, we're super excited about it. There's another player out in the marketplace. It's a great product that's out there. I think for the whole industry, this is going to be an interesting evolution that over time, over a decade or so, is going to evolve the whole install base. But to Roland's point, there are different technologies out there. I mean, we know cadmium. We've experimented with cadmium. We understand it well. It can be a very good detector.
But we made a decision on silicon because of two of these key points that Roland talked about, which is all this high spatial resolution that's talked about is great, but if to get it, you can only look through a small hole and see a small area, it limits the use. So the more you can get that wider view, higher resolution, you want to do that. We think we're going to have the potential to do more than some other design approaches. The other one is this spectral point. And again, this is where CT gets interesting.
And again, this is for the whole industry, is if you're looking at a coronary artery and my cardiologist friend can comment on this, and you see, gee, there's a certain blockage. But what you really want to know is inside of that little plaque, is it going to rupture in the next six months or is it stable? Because that changes the therapeutic decision one makes. Spectral imaging gives you that potential. And the question is, do you get enough in three to four bins? Do you need eight or 10 to do it? The more spectral definition you have, the more tissue delineation you have. And that, again, for the whole industry is the promise. But that's one of the key reasons the direction we went because we think we're going to have more separation within that area.
Larry?
Thanks, Larry Biegelsen from Wells Fargo. Kevin, a follow-up for you on Flyrcado. The price, higher than we expected. Any concern about pushback from hospitals, payers? Can you talk about the ramp, $50 million in 2025? Is that kind of a reasonable place to start? And just lastly, the three buckets you outlined, talk about the low-hanging fruit and how you can convert rubidium users versus the other ones. Thanks.
Sure, well, I think you managed to get three questions as well, Larry. So that's pretty good. Let me go through those one by one just in terms of the pricing. I mean, as I said in the main body of the presentation, we've priced it in line with other novel PET radiopharmaceuticals. We've obviously done our market research. We'll be applying for pass-through. And that's the price we're going to be launching the product at. So we feel happy about the pricing. With regards to 2025, we're not giving guidance on 2025. But we obviously talk about the ramp to what we talked about in 2028. And in terms of the ramp up now, as we look at that segmentation, the starting point is these are radiopharmaceuticals.
We're working with the CMO networks, now our partners in Cardinal Health, SOFIE and others, Pharmalogic and others in terms of building out that network of coverage. By the end of next year, we believe that we should have in place about 90% of the existing PET cardiac users covered. That's obviously the first area to go, where customers are using rubidium today, which I think, as Pete mentioned, the utility of Flyrcado, an F-18 labeled product with a 100-minute half-life, is significantly greater than one that has a half-life of 80 seconds. You can do exercise stress imaging. We're targeting some of those key customers in terms of conversion to Flyrcado.
As I say, we're working then with Roland and the team in terms of what about those locations where we've got a nuclear cardiologist who has access to a PET in his facility, but it's being used for oncology today? How do we do the upgrade on the PET so it can be used for cardiology as well? And then there's those new sites as well. So we're working all three angles of those. The low-hanging fruit is obviously existing PET cardiac users, but we're working on all three angles there in terms of building that installed base up over time to ensure that all patients who should be getting a PET cardiac scan can have access to one over time.
And then Larry, obviously the bigger question is the SPECT imaging that's the predominant component out there. The clinical data that was published on what Flyrcado can do on specificity and sensitivity is quite significant. And so ultimately can mean false negatives, false positives, obviously can be optimized. And that piece of how much are you willing to pay for that ultimately is where the real value is. The workflow is super important, but if obviously you can see a perfusion defect that you're going to miss someplace else and what that means in the system is a big deal.
So we can fit two more questions. We're going to Suraj and then to Craig.
Suraj Kalia from Oppenheimer. Thank you for all the color. So Pete, Jay, one question. I'll let you all handle it whichever way convenient. As you all lay out the medium-term 2028 roadmap of 4% to 6% CAGR, how do you, Pete, how do you think about developed versus developing regions to achieve those targets? And maybe you can answer that or the sensitivity of customers cross-platforming and buying more products from G, i.e., customer concentration to achieving those targets. Thank you.
It's an interesting question because in many ways, our historical growth has been a lot more around geographical expansion in general, and I do think there's going to be certain aspects in products and family lines where that's going to continue to play, so Phil talked a lot about ultrasound, the proliferation opportunity in Asia-Pac, even in Europe for more ultrasound with the use of AI, that a non-highly sophisticated MD, but a next step down of clinician can come to your home, do lots of things.
Again, your primary care physician, think about the physical you go through today. It hasn't changed from your grandparents. If that primary care physician has a wand that can see into the body and give advice, that's going to change. So I think that's going to be a broader across all areas. Think about the discussions that Kevin just had in PET. You are going to see some of that in developing markets, but I think you're going to see more concentration in the West, particularly in the United States and Western Europe.
Why? It's going to be a lot of these are tied to more expensive therapies, PSMA positive therapy solutions, other oncology-based solutions that will be there. I think we would say in digital and that probably the U.S. is one of the first markets that's going to grow. A lot of that is with our data standards, the cloud-based capabilities across countries. There will be select countries in Europe where it will be coming on. But I think as many of you know, even some of the data policies in certain big G7 countries are what you can use in the south of that country, you can't share in the north.
And so that will manage the speed of what that rolls out to. But in our full product portfolio line, I think one of the things that we've been really focused on, and it is part of our regional manufacturing, is to build products in those market areas that are adapted to that market. So take India. India for us has been a big software hub and capability for the world. It will continue to be an important aspect for that. But we now are making more products in India for India in Southeast Asia than we did in the last 10 years.
And that cost base and that location for adaptability of engineers for that market will continue to grow. China is a good example. We imported into China 60% to 70% plus of our products in the last few years. Now in China, over 80% of the products in that market, closer to 90%, are engineered and developed in the marketplace, and some of that, with the challenges in the world that we live, gives better certainty to provide customers and patients in that marketplace, but a lot of it.
Also is about creating agility to compete with new local competitors in different areas so that we can be just as local as they are in any given marketplace, so that's kind of how I see it out. It's not going to be as consistent it was in the past. There's clearly going to be different technologies that will go faster in certain markets, and I do think being local in a given market to really take advantage of opportunities, the agility component is going to become more important in the future.
Okay. Craig?
Thanks. Craig Bijou, Bank of America. Jay, you added a plus to the 20% on the margin, the upper end of the margin guidance. Obviously, you feel better about your ability to expand margins. But it's still a wide range, the high teens to 20%. So I wanted to understand what does it take to get you to that 20-plus range? And then on top of that, just how should we think about the cadence of margin expansion? Maybe I heard your comments on 2025, but maybe beyond that when you look at the medium-term targets.
Yeah, I think it's a great question. Thank you. And we are really proud of the progress that we've made since the spin. And what we've done is we've put in place the building blocks of a multi-year margin expansion plan, but we've been able to execute on the first elements, the first components of those building blocks. And frankly, we executed on basically all of the dimensions, although I would say that probably underrepresented relative to long-term as we've seen so far is in the area of innovation. What have we seen? We've seen pricing. Pricing will continue as we look forward through this long-range plan.
We've seen variable cost productivity initiatives to more than offset inflation. That's occurred in two years. In the last two years, we've seen those net reductions in our manufacturing costs. We've seen this idea of G&A emphasis and spending each dollar very carefully. We have some elements of zero-based budgeting in place that will continue. All of those things contributed to our performance this year. As we look forward, the biggest incremental driver will be innovation.
And as we think about that 150-250 basis points of expansion due to innovation, a lot of that is tiered to the uptakes that we're going to see in some of these new products. And so frankly, some of the work that Kevin's doing, photon counting, some of the fill work in terms of refreshing the portfolio, all of those things are incredibly exciting and provide an important catalyst for us as we look to deliver and exceed on the margin plans that we've shared. We added the plus because we've done what we said we're going to do and then some.
But then also we've filled the pipeline up with a really rich set of opportunities that allows us to get to those levels. So we have to execute. We've got risk adjustments in place. We've got really good long-term plans. And some of this pipeline becomes a key unlocker to the long-term story there. Pete, I don't know if you'd add anything to that.
I think you've covered it. I mean, we've been coming out of the TSAs now. We've got a little bit more operating mobility to work on some of the structural and G&A items, which, as we're waiting for more products to come, that actually helps with our EBIT. But again, gross margin, gross margin, gross margin. I think when you have a pharmaceutical division, you can grow that faster. You can complement that with software that has premium margins. You have these new products. You have the optimization of the company.
You have filling these gaps of these products gives you that growth consistent with what we've been delivering. And then you have an opportunity to inflect towards the outer part of it. And then Jay talked about in his presentation, we obviously are talking out through 2028, but as you start getting towards late 2027 and 2028 and even beyond 2028, a lot of these things can play a much significant role in our margin part of our revenue contribution.
Okay. Thanks, everyone. Pete will now close us out.
Thank you, guys. Yeah, look, just to kind of wrap up, I want to first of all just kind of say a few thoughts. Again, thanks for all of your time and interest. A lot of great questions that we've had here. For our 51,000 employees around the world, the board, our team here that prepped, I just want to say thanks for your interest, particularly within the company. It's kind of interesting.
It's very humbling standing here almost two years ago when we were on the early edge of launching out the company, when we had Nasdaq come to our Waukesha facility on the floor with all of our employees. It was a very special event, and what I feel good about is our say-do ratio of what we've committed to the street that we've delivered on what we've said. Yes, there's a lot more to do. There's a lot more opportunities in front of us, but it first starts with, are you doing what you said you would do, and I believe we're well on track to what we've laid out.
You've heard a lot of interesting things here about how we're going to continue to grow the business. I hope you definitely take away the fact that we've got multiple opportunities and multiple shots on goal and that GE HealthCare brings a really interesting perspective from a value proposition that many other companies don't in healthcare today, but these three big things we just iterated on the stage. I think the increased R&D investments and what that's going to mean relative to the product pipeline. In this industry, you know it well. You have to have world-class products. Those products can deliver growth.
And if they're built in a way that actually brings extra margin, that will come. That's all in place. Radiopharma, in many ways, is a little bit of a wild card for us. There's a lot of great opportunity here, but it's underpinned with a much more precision sale. Somebody just can't come in and play one part of it. You really need to play a broader part. And we are uniquely positioned as one of the very few companies that can enable that. And then on AI and digital, we're already doing a lot.
Most of it's in our products. Most of it helps the product be better. Most of it allows us to get more price or mix or win more share. In the future, hopefully you heard the points, it's also going to bring new products by itself. The example Tom used in labor delivery is just one of many so that someone like Katrine can actually have 20 to 30 different modules like that that when we're trying to solve problems for our customers, we can plug in with proof how you would implement in this IDN and give you difference, give you outcomes that are differentiated.
Why is that important? Somebody is always going to have a lower cost box or component than you. But if things are working together that I can actually demonstrate savings for you from a system we can offer, that differentiates us from many other companies that are out there. So look, Jay mentioned balance sheets in good shape. We do have a lot of breadth as a company to bring in tuck-in M&A.
We gave you a little bit more exposure to how we're thinking about that purposely because we want to bring pieces in to actually help fill out our portfolio to continue to grow. We're on track for 2024 as we committed mid-single digits in the midterm. We've raised, obviously, our EBIT for the midterm and also free cash flow. Again, thank you so much. For those here in the room, we've got the tech area. We appreciate grabbing some lunch and being able to interact with our team over there and see some of these things handled. Thanks for your time and attention. Appreciate it.