Philips 2005 Annual Report Download - page 29

Philips Annual Report 2005 29
Medical Systems
By delivering healthcare solutions that are advanced, easy
to experience and designed around the user, Philips Medical
Systems allows its customers to focus on the patient
throughout the entire cycle of care.
Medical Systems holds global No. 1 or 2 positions in many
product and service categories.
Medical Systems offers advanced solutions for:
Imaging: X-ray, computed tomography, magnetic
resonance, ultrasound, and nuclear medicine including
positron emission tomography;
Cardiac and monitoring systems for minimally invasive
therapy, patient monitoring and resuscitation;
Customer services;
Medical transcription services (MedQuist);
Other equipment and services, including healthcare IT.
Products and services are sold to healthcare providers
around the world, including academic, enterprise and stand-
alone institutions, clinics, physicians and consumer retailers.
Inaddition,homedebrillatorsaresoldtoconsumers.
Medical Systems has around 31,000 employees, more
than half of them in the USA, and a presence in more than
100 countries wordwide.
Pursuing growth
Medical Systems aims to further strengthen its market
positions in North America, China and Japan, while
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maintaining leadership in Europe. It will do so by increasing
product innovation and strengthening its channels to market.
The largest healthcare market, currently representing
50% of the global healthcare market, is the USA, followed
by Japan and Germany. The rapidly growing Chinese
healthcare market is expected to take second place by
the end of the decade. Initially focusing on US healthcare
providers, the Strategic Partnership Program, which offers
all Philips product modalities and related services (e.g.
consultingandnance)inanintegratedpackage,hasledto
multi-year contracts. It currently serves over 20 hospital
enterprises in the USA and has resulted in a USD 1 billion
order portfolio. Philips is assessing its applicability to
other countries.
Philips systems are installed in over 75% of the 17 top-
rated US hospitals, while in cardiology over 70% of the
top 50 US hospitals have chosen Philips solutions.
In 2005, Medical Systems concluded major contracts with
Capital Health of Alberta, Canada; HealthTrust Purchasing
Group of Brentwood, Tennessee; St. Francis Cardiac &
Vascular Care Center of Indianapolis; Medical Center of
Central Georgia and the University of Alabama.
Medical Systems also places strong emphasis on Japan, the
world’s second-largest market, and on the fast-growing
market of China, with heavy sales-force investments
resulting in increased orders in 2005. The Philips-Neusoft
venture in China – established in 2004 for the development
and worldwide supply of economy imaging equipment –
isexpectedtoshipitsrstexportproductsin2006.
HeartStart
Allowing therapy to begin vital minutes
earlier,Philips’HeartStartdebrillator
can help save lives that would
otherwise be lost.