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GE announced Tuesday that it is acquiring API Healthcare - a software and analytics firm that helps medical agencies mange their work force.

The deal aims to enhance the GE Healthcare's current Hospital Operations Management (HOM) portfolio with API Healthcare's complementary offerings. Real-time access to operational data is also expected to get a boost. 

"Labor costs represent over 50 percent of hospital operating budgets," said Michael Swinford, President & CEO, GE Healthcare Services in a press release. "With this acquisition, GE Healthcare will be able to address a significant portion of hospital operations costs -- assets, patients and labor -- with a mix of software, real-time data, powerful analytics and professional services."

API Healthcare solutions serve more than 1,600 hospitals and staffing agencies that includes services such as staffing and scheduling, patient classification, human resources and business analytics.

Upon completion of the deal, API Healthcare solutions will become a part of the Predicitivity(TM) Industrial Internet portfolio alongside the pre-existing GE Healthcare's HOM offerings.

"Health care productivity is more important than ever for hospitals as more patients enter the system and operational costs continue to climb," said John Dineen, President & CEO, GE Healthcare in a press release. "In addition to clinical systems, hospitals need operational management systems to drive enterprise-wide efficiencies, reduce unnecessary costs and enable improved patient care. Over the next 5-7 years, we believe sales of these systems will accelerate towards double-digit growth and GE Healthcare will lead the way."

G.E. recently announced that it had generated 73 percent of its revenue from industrial operations that includes water, power, aviation, oil and gas and healthcare activities.

The company also reported that in last quarter the net earnings had risen 5 percent summing to $4.2 billion. 

Without disclosing the terms, the company said it is anticipating the deal to finally close in the first quarter of 2014.