Royal Philips (NYSE:PHG) said yesterday that it and Westchester Medical Center Health Network formed a $500 million, 15-year partnership to develop new value-based healthcare solutions for the Hudson Valley hospital system.
The deal calls for Philips to supply WMC with medical technologies such as imaging systems, patient monitoring and informatics systems, plus analysis of patient data and business consulting, Philips said.
“With health systems facing increased pressure and more complex challenges than ever before, and patients starting to take a more active role in their care, we can no longer accept the status quo. Health systems need a dedicated partner that can bring not just technology, but also deep healthcare and consumer expertise, resources and solutions that will help accelerate the transformation of their organization and ecosystem. Our partnership with WMCHealth reinforces our leadership in long-term, strategic collaborations, allowing health systems to expand access to quality care, manage costs and share risk. This allows them to focus on what matters most: delivering better care to the people in their communities,” Philips CEO Frans van Houten said in a press release.
WMC Health manages 7 hospitals in New York’s Hudson Valley and serves 3 million customers, the company said.
“In order for us to make the large-scale improvements that will truly impact the lives of our patients, we need to think longer-term and be able to adapt quickly as technology evolves. Our alliance with Philips not only gives us access to the latest in connected digital health technologies, it will allow us to collaborate on pro-active health management and co-create new patient-centered models of care for the Hudson Valley area. Together, we are working to keep the Hudson Valley healthy through a model that supports innovation and transformation in a value-driven environment,” WMC Health CEO Michael Israel said in prepared remarks.
Last month Philips said it would work with the Academic Medical Center in Amsterdam on a new diagnostic imaging approach for spotting and treating restricted blood flow in feet due to diabetes. The company also signed a $25 million research deal with MIT, with 70% of the research funding slated for health diagnostics and imaging technology.