Philips 2008 Annual Report Download - page 73

#1
provider of
personal
emergency
response
services in
the US
Healthcare landscape
The global healthcare market is dynamic and growing.
Over the past three decades, the healthcare industry
has grown faster than Western world GDP, and has
also experienced high rates of growth in emerging
markets such as China and India. Rising healthcare
costs present a major challenge to society. The industry
is looking to address this through continued innovation,
both in traditional care settings and also in the field of
home healthcare. This approach will not only help to
reduce the burden on health systems, but will also
help to provide a more comforting and therapeutic
environment for patient care.
The healthcare market is not, however, immune from
developments in the macro-economic environment.
The recent global downturn has had a significant
impact on the healthcare industry. Hospitals and other
healthcare providers are struggling with reimbursement
pressures and reduced direct government spending due
to budgetary constraints. At the same time, tighter
credit markets have resulted in greater scrutiny on
capital purchases. These rapidly changing market
dynamics adversely affected us and our competitors
in 2008 and will continue to have an impact in 2009.
In North America, for example, the availability of
capital financing is expected to remain limited for
the foreseeable future.
How we make a difference
Philips’ distinctive approach to healthcare starts by
looking beyond the technology to the people – patients
and care providers – and the medical problems they face.
By gaining deep insights into how patients and clinicians
experience healthcare, we are able to identify market
and clinical needs. In response, we can develop more
intuitive, more affordable, and in the end better technology
solutions to help take some of the complexity out of
healthcare. This results in better diagnosis, more
appropriate treatment planning, faster patient recovery
and long-term health. We try to simplify healthcare
through combining our clinical expertise with human
insights to develop meaningful innovations that ultimately
help to improve the quality of people’s lives.
With a growing presence in cardiology, oncology, and
women’s health, we focus on the fundamental health
problems with which people are confronted, such
as congestive heart failure, lung and breast cancers
and coronary artery disease. Our focus is to deliver
value across the complete cycle of care: from disease
prevention to screening and diagnosis through to
treatment, monitoring and health management. Philips
is dedicated to making an impact wherever care happens,
within the hospital – critical care, emergency care and
surgery – and, as importantly, in the home.
The high-growth sector of home healthcare is a
core part of Philips’ healthcare strategy. Philips
Home Healthcare Solutions provides innovative
products and services for the home that connect
patients to their healthcare providers and support
individuals at risk in the home through better
awareness, diagnosis, treatment, monitoring, and
management of their conditions. We provide solutions
that improve the quality of life for aging adults, for
people with chronic illnesses and for their caregivers,
by enabling healthier, independent living at home.
About Philips Healthcare
Philips is one of the top-tier players in the healthcare
technology market (based on sales) alongside General
Electric (GE) and Siemens. Our new Healthcare sector
brings together our former Medical Systems division
and our growing Home Healthcare Solutions business.
Consolidating these businesses, combined with additional
acquisitions of complementary, high-growth healthcare
companies, has created a Healthcare sector with sales
in 2008 of more than EUR 7.6 billion. It has also created
global leadership positions in areas such as cardiac care,
acute care and home healthcare.
Philips Annual Report 2008 73
122
Performance statements
114
Supervisory Board report
110
Our leadership
94
Risk management
70
Our sector performance
Healthcare