Philips 2007 Annual Report Download - page 59

Philips Annual Report 2007 65
Products and services are sold to healthcare providers
around the world, including academic, enterprise and
stand-alone institutions, clinics, physicians and consumer
retailers. Marketing, sales and service channels are
mainly direct.
Major drivers of the medical technology market include
a growing and longer-living world population, the associated
rising incidence of chronic diseases, insufcient stafng
levels, and government funding and reimbursement.
Healthcare reforms in some countries and increased
price competition among major players may have a limiting
impact on future market growth. In light of these factors,
technology has a signicant role to play, enabling new
solutions for early and better diagnoses and less labor-
intensive treatment. Therefore the technology share of
the healthcare bill is set to increase more rapidly than
overall healthcare spending. We believe that bridging
the hospital and the home is going to be increasingly
important in delivering better patient outcomes while
containing costs. This conviction is driving Philips’
investment in building up a leading home healthcare
business, as outlined in the Consumer Healthcare
Solutions business description within Innovation &
Emerging Businesses that begins on page 93 of this
Annual Report.
We intend to maintain our high level of product
innovation and strengthen our sales and distribution
channels. The United States is the largest healthcare
market, currently representing close to 50% of the
global market, followed by Japan and Germany.
The medical systems market is subject to some
seasonality
as a relatively large proportion of revenue
is recognized in the fourth quarter, mainly reecting
public/governmental budget spending.
We employ approximately 27,000 employees worldwide,
including 8,000 in services.
Philips Medical Systems is a global provider of innovative
healthcare solutions, designed to address the needs of
patients as well as healthcare professionals, with a
particular focus on diagnostic imaging – cardiology,
oncology and women’s health – and critical care.
Whether it is in the hospital or in the home, we seek
to improve patient outcomes throughout the entire
cycle of care – from prevention and screening to
diagnosis, treatment, monitoring and management.
In order to simplify healthcare for our customers and
the patients they serve, innovation at Philips is driven
by gaining insight into the needs of the people who use
our products. Within healthcare, this human insight is
combined with a solid clinical understanding to create
integrated offerings across the cycle of care that truly
support clinical excellence.
In 2007 we were comprised of four areas of business*:
Imaging Systems – x-ray, computed tomography, •
magnetic resonance and nuclear medicine equipment,
designed to create diagnostic images and to support
minimally invasive therapy
Ultrasound and Monitoring Solutions – ultrasound •
imaging, patient monitoring and cardiac systems
Healthcare Informatics – picture archiving and •
communication systems (PACS), clinical decision-
support information, cardiology IT and document services
Customer Services – consultancy, clinical services, •
education, equipment nancing, asset management,
as well as equipment maintenance and repair;
supports the optimization of workow and
maintenance in all markets served.
98 Risk management 112 Our leadership 116 Report of the Supervisory Board 126 Financial Statements
“ Human insight is combined with a solid
clinical understanding to create integrated
offerings across the cycle of care.”
6%
currency-comparable growth of
order intake at Medical Systems
* Following the announcement on November 2, 2007,
of Philips’ intention to dispose of its majority stake in
MedQuist, this business is presented as a discontinued
operation in this Annual Report and not consolidated
with the results of Medical Systems.