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Philips enters $500 million partnership with regional health care system

por Lauren Dubinsky, Senior Reporter | June 17, 2015
Business Affairs
Westchester Medical Center
Almost two years ago, Royal Philips and a Georgia medical center entered into a 15-year partnership worth $300 million, which was Philips’ first agreement of its kind in the U.S. Yesterday, the company announced a similar agreement of an even larger magnitude.

Philips has entered a multi-year $500 million partnership with Westchester Medical Center Health Network (WMCHealth) to provide clinical and business consulting services and a range of medical technologies to an entire health system.

WMCHealth has 1,500 beds, spans seven hospitals and several campuses and locations, and has almost 300 health care partner organizations across New York’s Hudson Valley. Its Westchester Medical Center serves over three million patients and is the only resource for complex medical and surgical interventions in the region.

“Health networks are undergoing a large amount of change and pressure,” Matt Bierbaum, vice president of managed service and enterprise partnerships at Philips, told DOTmed News. “The risk in terms of reimbursement continues to increase and there are ongoing challenges of cost reduction throughout health care and challenges of taking care of patients and creating healthy communities.”

Health care systems traditionally have to deal with many different participants to procure a single piece of equipment. But with this new model, Philips brings all of that under one umbrella by selecting, installing, managing, maintaining and replacing all of the Philips and non-Philips equipment throughout the health care system.

“Philips takes on the role as both the primary provider of all of those capabilities and also the integrator,” said Bierbaum. “Philips isn’t necessarily doing all of the work but instead is ensuring that everyone is coordinated in managing the technology and supporting care delivery.”

Bierbaum believes that partnerships like this between vendors and health care systems are the way of the future. “I absolutely think it’s going to be the trend that we’re going to see continue not only globally but within the U.S.,” he added.

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