Philips Healthcare ($PHG) is carving out a new model of distribution, signing a $300 million deal with a Georgia hospital in which it'll provide its full fleet of medical technology and collaborate on new devices and treatments.
In a 15-year-agreement Philips said is the first of its kind, the company will team up with Georgia Regents Medical Center, supplying imaging systems, patient monitoring and clinical informatics technology. At the same time, Philips' experts will have a seat at the decision-making table, working with hospital officials to design and implement cost-effective patient-care systems that can be scaled and duplicated, Philips said.
At $300 million, it's Philips' largest delivery deal ever, and Georgia Regents CEO David Hefner said the partnership reflects a changing paradigm in healthcare. Forward-thinking providers are scrapping vendor-client relationships in favor of bringing all the stakeholders together and sharing ideas on how to treat patients efficiently and effectively, he said.
"It's no longer a simple supply-and-demand business model," Hefner said in a statement. "Our goal is to foster an atmosphere of meaningful innovation that will have a significant and positive impact on the health of our patients."
The alliance will cover all of Philips' areas, the company said, including radiology, cardiology, neurology, oncology and pediatrics. Furthermore, over the course of 15 years, Philips expects its partnership to spur new R&D as both parties look to optimize patient care and develop technologies for a changing healthcare system.
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