Royal Philips (NYSE:PHG) said today that it signed a 10-year partnership agreement with Klinikum Stuttgart hospital in Germany to cover replacement and procurement of state-of-the-art medical technology.
The agreement includes technology such as diagnostic imaging and informatics solutions with a goal of implementing innovations that improve quality, cost-effectiveness and experiences for both patients and staff in patient care, according to a news release.
Philips noted that a key part of the partnership is Klinikum Stuttgart’s flexibility in terms of what technologies are used and when they are installed, offering the hospital a choice in equipment which the two parties believe will positively affect investment costs and cost of ownership.
Klinikum Stuttgart is also slated to begin a construction project, the first phase of which is expected to be completed by the end of 2020. The hospital plans to relocate radiology, interventional neuroradiology, intensive care and endovascular surgery in brand new buildings as part of the project.
“This partnership is an important step for us to further improve the quality and efficiency of the care we deliver to our patients,” Klinikum Stuttgart commercial director Dr. Alexander Hewer said in prepared remarks. “As the largest provider in the region we continue to grow. Together with Philips we will work on technical innovations and process improvements to further enhance our attractiveness for patients and employees.”
“As an innovation partner, we will work with Klinikum Stuttgart to further optimize their hospital workflows in patient care and thus their performance as a whole,” added Philips DACH (Germany, Austria, Switzerland) market leader Peter Vullinghs. “These aspects of the agreement are performance-based and focused on success, demonstrating our commitment to being an accountable business partner.”
“We have excellent clinicians and strong care delivery. With Philips, we now have a strong partner with a reputation for innovation leadership in medical technology and healthcare IT,” said Klinikum Stuttgart medical director Dr. Jan Steffen Jürgensen, Medical Director of the Klinikum Stuttgart. “With our combined expertise, we want to further improve our clinical processes and the safety of treatment for the more than 700,000 patients treated at the Klinikum Stuttgart every year.”
Shares of PHG were up +0.4% at $43.53 per share in midday trading today.