Philips inks 11-year deal for patient monitoring as a service

Jackson Memorial Hospital, part of Jackson Health System (Philips)

Philips has struck a deal to provide Jackson Health System with patient monitoring technology on a service basis. Rather than buy technology outright with an upfront payment, Jackson will pay Philips a per-patient fee in return for monitoring services over the 11-year duration of the agreement.

The payment structure is reminiscent of the software-as-a-service model that has reshaped the IT sector in recent years. In both cases, buyers free themselves from expensive upfront fees and secure access to ongoing vendor support and updates. This has proven to be a compelling combination in the enterprise software sector—and Philips thinks its medtech variant will find an audience, too.

“This model will allow them to manage costs on a per-patient basis and future-proof their monitoring technology, all while increasing patient and staff satisfaction through a more seamless monitoring experience,” Vitor Rocha, CEO of Philips North America, said in a statement.


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Philips will retain ownership of all the hardware, software and networking technologies used in the deployment of the patient monitoring system at Jackson. Jackson will pay for the equipment it uses on a patient by patient basis. If the model works as intended, Philips will introduce new technologies as they become available, ensuring Jackson stays at the leading edge as biosensors come to market.

Jackson will also receive technical support from Philips and work with its partner to identify ways to improve clinical workflows. Philips has signed up to help Jackson integrate technologies into its EMR and other core IT systems.

Whether the model works as well as hoped remains to be seen. Jackson is ceding some control over the deployment and management of the patient monitoring technology, although, as the developer of the equipment, Philips should be better placed than anyone to use it effectively. The success of the arrangement will be monitored by healthcare systems and vendors alike.

Some other organizations already see the model as critical to their futures. Notably, CMR Surgical is planning to offer its surgical robots on a service basis, enabling hospitals to access the technology without paying a big fee upfront.


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