Philips 2011 Annual Report Download - page 64

6 Sector performance 6.1.4 - 6.1.4
64 Annual Report 2011
help save and improve lives as part of the UN’s 2015
Millennium Development Goals for the Global Strategy
for Women and Children’s Health.
In 2011, Philips acquired several companies that
strengthened our market position and global reach. For
example, with the acquisition of Dameca, a global provider
of anesthesia machines and accessories for the operating
room, we significantly bolstered our therapeutic and
anesthesia-care care capabilities, and furthered our ability
to integrate information and technologies for ground-
breaking anesthesia-related clinical decision support.
PCCI also pioneered telehealth applications to address
customers’ need to improve financial and clinical
outcomes. Sisters of Mercy Health System of St. Louis,
Missouri, expanded its use of the Philips eICU telehealth
program across four states and eight hospitals to support
stroke victims with timely access to scarce stroke
neurologists, and it plans to extend this to 24 hospitals by
summer 2012.
International expansion of the Home
Healthcare Solutions business
Philips is a pioneer in home healthcare solutions. As the
company with the most comprehensive suite of solutions
in monitoring, sleep therapy and respiratory devices
available for the home, we play a significant role in
improving the quality of care at lower cost.
Philips is already the leading provider of medical alert
services in the US. In order to expand our presence and
support independent living for an aging population in
Japan, one of the most rapidly aging countries in the world,
we introduced our medical alert service Lifeline Auto
Alert. Customized to the needs of Japanese patients and
developed in close collaboration with local Japanese
hospitals, the Lifeline service offers seniors an easy-to-
use personal response service that lets them summon
emergency help at any time of the day or night.
The introduction of Lifeline in Japan is part of Philips’
multi-year international growth strategy for its home
monitoring business under which Philips plans to continue
introducing the Lifeline service in new markets in future.
Philips also aims to enter the sleep therapy and
respiratory care home markets in China in the near
future. To this end, in 2011 we initiated a comprehensive
research project in the Chinese market to obtain deeper
insights and determine optimal business models. Given
China’s aging population, it has become evident that there
is a significant clinical need for products and services to
address the rise in chronic conditions. Yet today, only a
relatively small portion of the population is able to pay for
these products and services. Our work in China goes
beyond making the products available: we are also
investigating ways to increase accessibility.
We contributed one of our telehealth solutions as part of
an extensive home healthcare clinical study,
commissioned and funded by the UK’s Department of
Health. In late 2011, the research showed that telehealth
solutions, if used correctly, resulted in significant benefits,
including a decrease in mortality rates from chronic
disease, a drop in emergency admissions and a decrease
in in-hospital days.
Invest for leadership in growth geographies
In 2011, Philips invested in the necessary resources to
drive our growth and leadership positions in key strategic
markets. In line with our mission to provide meaningful
innovations that improve the quality of care, enhance
patients’ lives and enable the delivery of better outcomes
at lower cost, we accelerated efforts in growth
geographies through a number of initiatives, including:
Investing in the local development of our care cycle approach:
Using our leading cardiology capabilities, we introduced
Chest Pain Centers in China in order to enable
cardiologists to better manage acute cardiovascular
events, and improve patient survival rates and outcomes.
Expanding our local manufacturing capabilities: The industrial
campus for imaging systems in Suzhou, China, became
operational and delivered its first systems in 2011, and we
also expanded our value segment assets in Interventional
X-Ray Systems (IXR) by setting up a greenfield healthcare
research & development and manufacturing facility in
Pune, India.
Expanding our product portfolio to deliver the right benefits,
on the right conditions, at the right times: We introduced
new, cost-effective imaging solutions, such as the Achieva
1.5T SE Magnetic Resonance and MX16-slice CT systems,
which allowed us to meet the growing demand for easy-
to-use, full-featured imaging products that can handle
large volumes of work and meet the specific needs of
customers in both mature and growth geographies.
Introducing new business models: We provide multi-
modality imaging solutions in a pay-per-use model or by
entering into multi-modality partnership deals with a
revenue-sharing aspect, such as with Fortis Healthcare in
India.