Philips Inks $90M Partnership With California Hospital

• First community hospital to engage in strategic partnership based on enterprise managed services model and third for Philips in North America in just six months
• Partnership to deliver outstanding patient experience for the residents of Marin County, CA
• Collaboration will include technology, design and informatics to develop new, patient-centric hospital bed tower and ambulatory facilities

Amsterdam, the Netherlands and Greenbrae, CA – Royal Philips (NYSE: PHG, AEX: PHIA) and Marin General Hospital (“MGH”) today announced a 15-year, USD 90 million strategic partnership to transform and improve health care for thousands of patients across Marin County, just north of San Francisco.  This is the first large scale partnership of its kind for an independent community hospital and the third for Philips in North America in the last six months. This latest strategic partnership signals a growing trend within hospitals and health systems to better manage the cost and complexity of their technology investments, while expanding quality access to advanced medical care to improve patient outcomes.

Through this strategic partnership, which is based on an enterprise managed services model, Philips will provide MGH with a comprehensive range of advanced medical technologies including imaging systems, patient monitoring, telehealth and clinical informatics solutions as well as clinical education, consulting and design services.

MGH is an award-winning independent hospital, renowned for being in the top five percent of hospitals in the United States, noted with a Healthgrades Distinguished Hospital award for excellence in clinical care for two years running. As part of the hospital’s strategy to provide the most advanced care possible for the local community, it plans to break ground in 2016 on a hospital replacement project, and open a state-of-the-art breast health center. In addition to treating patients with the latest advanced treatments and technology,  Marin General Hospital integrates complementary holistic care and support services through the its Center for Integrative Health & Wellness into treatment plans.

“We want to help keep residents of Marin healthy, and that means providing quality care close to home, including a new building, state-of-the-art health care technologies and services that will allow us to deliver on our goal of treating the whole patient – mind, body and spirit,” said Marin General Hospital’s Chief Information & Technology Integration Officer Mark Zielazinski. “As an independent community hospital, we have made a conscious decision to partner with Philips, an industry leader, who can support us in taking a long-term view and quickly adopting the latest digital health technologies, while creating an exceptional experience for our patients.”  

The strategic partnership underscores Philips’ commitment to provide new solutions for hospitals and health systems driven by a fundamental shift in U.S. health care management towards strategic partnerships for creating long-term patient value while managing costs, complexity, and risk. In the initial phase of a similar, long-term partnership with Philips, a hospital reported a 35 percent reduction in technology spending, while improving clinical quality.

“Forward thinking organizations such as Marin General Hospital understand that for community hospitals to differentiate themselves and to comply with new value based models, they need to focus on the patient experience and team up with a technology partner that has a deep understanding of how a hospital operates,” said Frans van Houten, CEO of Royal Philips. “By partnering with Philips, Marin General Hospital not only has access to over a century of experience in leading healthcare technology, solutions and services, they have a partner with the right resources and skill set to help them deliver an excellent patient experience, high quality health care and manage costs. This allows them to focus on what matters most: delivering better care to the people in their communities.”