Philips 2008 Annual Report Download - page 74

Philips Healthcare’s current activities are organized
across five businesses:
Imaging Systems – x-ray, computed tomography •
(CT), magnetic resonance (MR) imaging, and nuclear
medicine imaging equipment
Clinical Care Systems – ultrasound imaging, hospital •
respiratory systems, cardiac care systems and children’s
medical ventures
Home Healthcare Solutions – sleep management •
and respiratory care, medical alert services, remote
cardiac services, remote patient management
Healthcare Informatics and Patient Monitoring – •
healthcare informatics, patient monitoring systems
and image management services
Customer Services – consultancy, clinical services, •
education, equipment financing, asset management
and equipment maintenance and repair.
We are continually striving to improve the organizational
structure of our Healthcare businesses, particularly
in light of the current economic climate. In late 2008,
we set forth a plan to help reduce complexity in the
organization, streamlining the management structure
and increasing our speed of execution. This will
position us for a stronger future as we pursue our
ambitious strategic targets.
Products and services are sold to healthcare providers
around the world, including academic, enterprise and
stand-alone institutions, clinics, physicians, home
healthcare agencies and consumer retailers. Marketing,
sales and service channels are mainly direct.
The United States is the largest healthcare market,
currently representing close to 50% of the global
market, followed by Japan and Germany.
The healthcare market is subject to some seasonality
as a relatively large proportion of revenue is recognized
in the fourth quarter (on a calendar basis), mainly
reflecting public/governmental budget spending.
Philips Healthcare employs approximately 36,000
employees worldwide.
With regard to sourcing, please refer to the section
Supply management on page 54 of this Annual Report.
Progress against targets
The Annual Report 2007 set out a number of key
targets for Philips Healthcare in 2008. The advances
made in addressing these are outlined below.
Extract value from acquisitions through
successful integration
In 2008, Philips took a significant step in strengthening
its Home Healthcare Solutions business by acquiring
Respironics, a provider of innovative respiratory
and
sleep therapy solutions for hospital and home use.
This acquisition, the largest in Philips’ history, gives
us a leading position in the fast-growing areas of
sleep management, respiratory care and non-invasive
ventilation. The integration process will continue in
2009, yet we have already been able to extract value,
e.g. in the form of positive contributions to sales
and earnings.
Philips also finalized the acquisition of VISICU Inc.,
a provider of remote critical care monitoring, in 2008,
as well as acquiring Northern Ireland-based TOMCAT
Systems Ltd., a company that offers a software solution
to collect and aggregate data relating to cardiac care.
Leveraging the TOMCAT platform, the Philips
Cardiovascular Information System launched in
the fourth quarter of 2008 helps hospitals achieve
a high standard of patient care throughout the
cardiovascular care continuum.
Peace of mind
Philips Lifeline – part of Philips’ growing home
healthcare activities – is the leading medical alert
system in North America. It supports independent
living for seniors and the chronically ill by giving them
and their care givers peace of mind.
Lifeline’s Medication Management System is a
simple-to-use solution that helps address forgetfulness
and confusion, which are among the top reasons
seniors do not adhere to their medication routine.
The system helps to ensure that the correct medication
is taken at the right time, reducing the risk of under-
or over-dosing.
Philips Annual Report 200874
18
We care about...
8
Message from
the President
6
Performance highlights
14
Who we are
42
Our group performance