Philips 2009 Annual Report Download - page 85

In the long term, these challenges present Philips with an
enormous opportunity. We focus our business on
addressing the evolving needs of the healthcare market by
developing meaningful innovations that contribute to
better healthcare, at lower cost, around the world.
5.2.2 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 lighten the
burden on health systems, but will also help to provide a
more comforting and therapeutic environment for patient
care.
The healthcare market has not been immune from recent
developments in the macro-economic environment. The
lengthening downturn has had a significant impact on the
healthcare industry, primarily in North America, Japan and
Western Europe. Hospitals are facing dramatic declines in
their operating margins, and many are cutting or delaying
capital purchases and medical technology expenditures.
These rapidly changing market dynamics adversely
affected us and our competitors in 2009 and will continue
to have an impact in 2010. Though it remains uncertain
when recovery in the market will become visible, and
what the exact implications of pending US legislation will
be, we do see certain demand drivers that offset
reimbursement and profitability pressures. At the same
time we are anticipating government stimulus packages in
China and the US that should help drive recovery in the
healthcare market.
5.2.3 People-focused, healthcare simplified
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 more meaningful
innovations 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 by
combining our clinical expertise with human insights to
develop innovations that ultimately help to improve the
quality of people’s lives. We believe that we are well-
positioned for the long term as global healthcare needs
will continue to increase and our care cycle approach will
drive towards better patient outcomes and reduced
healthcare system costs.
With a strong presence in cardiology, oncology and
women’s health, we focus on many of 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 on understanding
the complete cycle of care – from disease prevention to
screening and diagnosis through to treatment, monitoring
and health management – and choosing to participate in
the areas where we can add significant value. Philips is
dedicated to making an impact wherever care is provided,
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. We provide 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 also 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.
5.2.4 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 Healthcare sector has
global leadership positions in areas such as cardiac care,
acute care and home healthcare.
Philips Healthcare’s current activities are organized across
five businesses:
• Imaging Systems – X-ray, computed tomography (CT),
magnetic resonance (MR) 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 – healthcare informatics,
patient monitoring systems and image management
services
• Customer Services – consultancy, clinical services,
education, equipment financing, asset management and
equipment maintenance and repair.
5 Our sector performance 5.2.1 - 5.2.4
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