Philips 2015 Annual Report Download - page 48

Sector performance 6.1.1
48 Annual Report 2015
founded upon integrated care, real-time analytics and
value-added solutions and services – that give patients
greater control over and responsibility for their health.
6.1.2 About Healthcare in 2015
At Philips, we deliver innovative, integral technology
solutions designed to create value by improving the
quality and delivery of care while lowering cost. Our
broad and deep clinical expertise and technology
leadership across the health continuum and
commitment to customer collaboration are core to our
business and truly dierentiate us.
Philips is one of the world’s leading healthcare
companies (based on sales) along with General Electric
and Siemens. The competitive landscape in the
healthcare industry is evolving with the emergence of a
considerable number of new market players. The
United States, our largest market, represented 43% of
Healthcare’s global sales in 2015, followed by China,
Japan and Germany. Growth geographies accounted
for 25% of Healthcare sales. In 2015, Philips Healthcare
had approximately 40,000 employees worldwide.
In 2015, our Healthcare business (which was organized
in six business groups) reported on four segments:
•Imaging (comprising the business groups Diagnostic
Imaging, Image-Guided Therapy, Ultrasound):
Diagnostic imaging solutions, including computed
tomography (CT), magnetic resonance imaging (MRI),
advanced molecular imaging (AMI) and diagnostic X-ray,
which includes digital X-ray and mammography;
integrated clinical solutions, which include radiation
oncology planning, disease specific oncology solutions
and X-Ray dose management; image-guided therapy
solutions including interventional X-ray systems,
encompassing cardiology, radiology and surgery, and
interventional imaging and therapy devices that include
Intravascular Ultrasound (IVUS), Fractional Flow Reserve
(FFR) and atherectomy; and ultrasound, a modality with
diverse customers and broad clinical presence.
•Patient Care & Monitoring Solutions: Enterprise-wide
patient monitoring solutions, from value solutions to
sophisticated connected solutions, for real-time clinical
information at the patient’s bedside; patient analytics,
patient monitoring and clinical decision support systems;
therapeutic care, including cardiac resuscitation,
emergency care solutions, invasive and non-invasive
ventilators for acute and sub-acute hospital environments,
and respiratory monitoring devices; consumables across
the patient monitoring and therapeutic care businesses;
and customer service, including clinical, IT, technical, and
remote customer propositions.
•Customer Services: Product and solution services and
support, including clinical support and performance
services; education and value-added services;
installation; remote proactive monitoring; and customer
service agreements.
•Healthcare Informatics, Solutions & Services:
Advanced Healthcare IT, clinical and imaging
informatics for radiology and cardiology departments,
Picture Archiving and Communication systems (PACS)
and fully integrated Electronic Medical Record (EMR)
systems; technology-enabled services including
telehealth, remote patient monitoring, care
coordination to make aging and chronic condition
experiences better; a professional services business
(Healthcare Transformation Services) spanning
consulting, education, clinical and business
performance improvement, program management,
system integration services. All solutions and software
businesses will be supported by the Philips HealthSuite
digital platform to enable interoperability, Big Data
analytics, optimized workflows and care pathways,
rapid application development, enhanced patient
centricity and engagement.
Philips Healthcare
Total sales by business as a %
2015
37Imaging Systems
31Patient Care & Monitoring Solutions
6
Healthcare Informatics,
Solutions & Services
26Customer Services
Sales at Philips’ health systems businesses are generally
higher in the second half of the year, largely due to the timing
of new product availability and customer spending patterns.
Commitment to quality
The implementation of the Philips Business System is
embedding a fundamental commitment to quality across all
our processes, products, systems and services. This
commitment is of vital importance in the extensively
regulated health equipment and system business. We are
committed to compliance with regulatory product approval
and quality system requirements in every market we serve,
by addressing specific terms and conditions of local and
national regulatory authorities including the US FDA, the
CFDA in China and comparable agencies in other countries.
Obtaining regulatory approval is costly and time-consuming,
but a prerequisite for market introduction.
Further progress was made in 2015 in the remediation of the
quality management systems at our Healthcare facility in
Cleveland, Ohio, with the ramp-up of production and
shipments continuing through the year.
With regard to sourcing, please refer to sub-section
14.2.8, Supplier indicators, of this Annual Report.