News Feature | July 15, 2016

Siemens Healthineers Brings Enterprise Services To U.S.

By Jof Enriquez,
Follow me on Twitter @jofenriq

siemens healthineers

Siemens Healthineers, the rebranded healthcare unit of Siemens, has announced that its Enterprise Services (ES) — offering hospital management and clinical IT solutions — is now available to customers in the United States. The portfolio also includes equipment management services, financial and asset management services, and operational capabilities for hospitals and healthcare organizations.

“With Enterprise Services, Siemens Healthineers ushers in an exciting new era of collaboration with our customers, enabling them to more effectively address budgetary issues and other pressures, and helping them create a first-class clinical environment,” said August Calhoun, PhD, Senior VP of Siemens Healthineers Services, in an announcement preceding the 24th Annual Health Forum/American Hospital Association (AHA) Leadership Summit in San Diego. “Now, hospitals and clinics are able to focus squarely on their core mission of delivering the highest-quality patient care.”

Prior to the U.S. launch of ES, Siemens Healthineers had inked contracts with European clients, including a 10-year managed equipment services contract in the UK that will provide state-of-the-art imaging to 530,000 patients at four sites, and an agreement with a hospital in the Netherlands to operate six new operating rooms beginning in early 2017.

"Siemens has been active in the market for a long time and it also has lots of clinical experience,” stated Gé Hoffland, Radiologist, VieCuri Medical Center, Netherlands, in a Siemens Enterprise Services web page. "Our collaboration is progressing well and the output from our department has increased on several fronts."

Prof. Dr. Vincent Thijs, Director of the Stroke Program, Neurological Clinic, University Clinical Center Leuven, Belgium, and Member of the Committee of the European Stroke Organisation, added, “The Siemens system provides a rapid and thorough assessment with practical recommendations that rapidly increase the performance of our stroke system. The evaluation by a neutral, competent and knowledgeable party is indispensable.”

When the company announced its new name in May, Siemens Healthineers CEO Bernd Montag said it would strengthen its traditional imaging and laboratory diagnostics business with new offerings, such as managed services, consulting, and digital services.

Siemens' move to diversify its business strategy reflects an industry-wide shift, wherein companies have to go beyond merely selling medical technology products and deliver more value-added services to help hospitals run more efficiently, and to create added revenue streams.

Siemens' rivals are equally aggressive in offering these enterprise management-type programs to U.S. customers. Recently, GE Healthcare signed its first managed equipment service agreement in the country, and Philips already has five multi-year deals with hospitals in the U.S. and Canada.

Meanwhile, medical device industry stalwarts Medtronic, Johnson & Johnson, and St. Jude have inked hospital/supplier risk-sharing agreements. Medtronic has a dedicated business unit called Medtronic Hospital Solutions to help hospitals reduce costs while meeting clinical outcomes. Medtronic's initial contracts include remote monitoring and the management of catheterization laboratories and operating room departments.