Philips Healthcare Q2: Imaging order intake down, other divisions up
Philips Healthcare’s second quarter showed an 8% increase in sales, but order intake for its Imaging Services division took a double-digit hit, according to the earnings report released earlier this week.
Meanwhile, order intake for the other divisions (Healthcare Informatics, Solutions & Services, and Patient Care & Monitoring Solutions) all showed growth, and all divisions showed an increase in sales.
In the company’s Q2 2015 earnings call, Philips CEO Frans van Houten focused on the importance of long-term partnerships with hospital networks, saying they generate several long-term revenue streams while significantly improving the hospital’s radiology department and overall patient care.
“We continue to make targeted investments in growth opportunities that will further strengthen our ability to capture a larger portion of the very attractive HealthTech market before us,” van Houten said during the call.
He mentioned, for example, that Philips and Westchester Medical Center Health Network recently entered into a $500 million partnership to “transform and improve healthcare for 3 million patients.”
“The agreement includes consulting services, healthcare informatics solutions, and medical technologies, and aims to improve all care areas, including radiology; cardiology; neurology; oncology; and pediatrics,” van Houten said during the call.
Van Houten also discussed the success of a pilot program Philips and Arizona-based Banner Health participated in together. The Intensive Ambulatory Care program reduced costs by 27% and reduced readmissions by 45%.
Michael has more than 18 years of experience as a professional writer and editor. He has written at length about cardiology, radiology, artificial intelligence and other key healthcare topics.