Philips 2006 Annual Report Download - page 56

Philips Annual Report 200656
by healthcare informatics (>15%), imaging systems (5%),
and ultrasound and monitoring (3%). Growth on the
healthcare informatics market was mainly driven by
PACS, supported by the trend towards digitalization.
Equipment order intake at Medical Systems in 2006
increased by 4% on a currency-comparable basis. Adjusted
for 2005’s exceptional EUR 173 million order for the
Royal Belfast Hospitals, equipment order intake grew by
6%. This was mainly attributable to a doubling of orders
for iSite products (Healthcare Informatics) and X-ray,
partly offset by a decline at Nuclear Medicine and fl at
order intake for CT.
Market growth is expected to return to long-term levels
of approximately 4% from a period of faster growth.
The slowdown of the market is mainly due to expected
fl atness in key markets in the EMEA region, the impact
of the Defi cit Reduction Act in the US and the lack of
technological innovation in CT, which stimulated market
growth in 2005/2006.
Medical Systems’ goal is to grow slightly faster than the
market. Foundations have been established for further
growth, with an ongoing increase in contract penetration
at Customer Services, a prominent position in PACS and
the transformation from stand-alone clinical functions to
a total ‘care cycle’ approach.
Improve the EBIT margin by 1-2% over the
next few years
Improvements are expected to continue, driven by further
integration of the supply chain, especially at Imaging Systems,
and the integration of Intermagnetics in MR. In addition,
lower IT operating costs and a stronger focus on profi table
growth, coupled with strict cost control across all businesses,
will support stronger margins.
Markets
Driven by a growing and longer-living world population,
the availability of new technologies for earlier and better
diagnoses as well as the possibility of minimally or non-
invasive procedures, the medical market showed strong
growth in 2006. This was largely due to increased demand
in North America and Asia Pacifi c. Europe and Latin
America also showed growth, but at a slower rate.
Healthcare reforms in some countries and increased
price competition among major players may have
a medium-term impact on future market growth.
Acute care
Medical Systems continued to lead the market in
state-of-the-art monitoring for acute care units with its
IntelliVue portfolio, introducing highly advanced clinical
decision-support applications. New functionality was also
added to the CareVue Chart clinical information system,
further addressing the need for assimilated, combined
and cross-referenced clinical information.
In 2006 a new portfolio of fl exible monitors was
introduced, the SureSigns VM series, specifi cally
designed for basic healthcare delivery in emerging
markets as well as lower-acuity care settings such
as clinics and offi ce-based surgery centers.
Women’s health
Product innovation in obstetrics continued as Medical
Systems introduced Avalon FM20 and FM30 fetal and
maternal monitors that improve care for mother and child.
Avalon offers ergonomic features including touchscreen,
information management functions and
breakthrough
clinical functionality like triplets monitoring.
Neurology
At Tokai University Hospital in Japan, Philips installed
MRXO, the world’s fi rst combined MR, X-ray, CT and
operating theater suite with fl oating patient transport,
which enables improved effi ciency when transferring a
patient between diagnostic modalities during neurosurgery.
Build and leverage healthcare IT to create the
integrated digital hospital of the future
In 2006, Philips installed a full iSite Picture Archiving
and Communication System (PACS) at St. Franciscus
Hospital in Rotterdam, Netherlands – a fi rst for Europe.
Offering
exceptional image quality and greatly improved
productivity,
iSite’s data integration capabilities make
a signifi cant contribution to the delivery of high-quality
patient care. Since Philips acquired Stentor in August
2005, orders for iSite have more than doubled.
Also introduced in 2006, Medical Systems’ Xcelera R2.1
cardiovascular workstation combines examination results
from key cardiology specialties. Direct access to images
and information across the care cycle enables the care
team to diagnose more effi ciently and make better-
informed treatment decisions.
Continue to grow faster than the market
The worldwide market for Medical Systems is estimated
to have grown by 5% in 2006. Market growth was led
6 Financial highlights 8 Message from the President 14 Our leadership 20 The Philips Group