Marin General inks $90 million deal with Philips for digital health, informatics tech

Officials said the deal could signal a trend of providers joining forces with single vendors to get a handle on costly and complex technology investments.
By Mike Miliard
11:08 AM
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Marin General Hospital has entered a 15-year, $90 million agreement with Philips to roll out an array of technologies including clinical informatics, patient monitoring, telehealth and imaging.

Philips will also bring clinical education, consulting and design services to the deal, company officials said.

"As an independent community hospital, we have made a conscious decision to partner with Philips in taking a long-term view and adopting the latest digital health technologies, while creating an exceptional experience for our patients," said Marin General’s chief information and technology integration officer Mark Zielazinski, in a statement.

[Also: Georgia system, Philips sign $300M deal]

This is the third such deal for Philips, and officials said the deal could signal a trend of providers joining forces with single vendors to get a handle on costly and complex technology investments.

The company embarked on a similar – although, at $500 million, much bigger – deal with Valhalla, New York-based Westchester Medical Center Health Network. Michael D. Israel, CEO of the 1,500-bed health system said the collaboration would enable the two organizations to drive efficiencies and "co-create new patient-centered models of care."

In 2013, Georgia Regents Medical Center tapped the vendor for $300 million partnership that was the first instance of this kind of partnership.

[Also: Philips, WMCHealth sign $500M deal]

"By collaborating with Philips, we’re bringing all the stakeholders together at the same table to better assess and plan healthcare for tomorrow," said Georgia Regents CEO David S. Hefner at the time. "It’s no longer a simple supply-and-demand business model."

Philips has since touted the fact that it helped effect a 35 percent reduction in IT spending at Georgia Regents, with improvements in clinical quality.

"Forward-thinking organizations such as Marin General Hospital understand that for community hospitals to differentiate themselves and to comply with new value based models, they need to focus on the patient experience," said Frans van Houten, CEO of Royal Philips.

Marin General plans to break ground in 2016 on a hospital replacement project, and open a state-of-the-art breast health center. Philips will reportedly be responsible for at least 85 percent of the clinical technology deployed at the new facilities.

Twitter: @MikeMiliardHITN