Philips, WMCHealth sign $500M deal

Hudson Valley health system sets it sights on redefining care delivery
By Bernie Monegain
08:22 AM
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Royal Philips and Westchester Medical Center Health Network – WMCHealth – have entered into a multi-year, $500 million partnership aimed at improving healthcare for millions of patients across New York’s Hudson Valley.

Philips will provide WMCHealth with clinical and business consulting services, as well as advanced medical technologies such as imaging systems, patient monitoring, telehealth and clinical informatics solutions.

The collaboration aims to redefine how quality care is delivered in all areas, including radiology, cardiology, neurology, oncology and pediatrics, as WMCHealth expands beyond a single-campus academic medical center into a multi-location regional healthcare provider.

[See also: Georgia system, Philips sign $300M deal.]

The work is part of WMCHealth’s transformation to a regional network as the largest provider of integrated health in the Hudson Valley.

A 1,500-bed health system headquartered in Valhalla, N.Y., WMCHealth spans seven hospitals and several campuses and locations, along with nearly 300 healthcare partner organizations. Its flagship, Westchester Medical Center, is the only regional resource for complex medical and surgical interventions, covering 6,000 square miles in eight counties and serving more than three million people.

“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,” said Michael D. Israel, president and CEO of WMCHealth, in announcing the initiative with Philips.

"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," he said. "Together, we are working to keep the Hudson Valley healthy through a model that supports innovation and transformation in a value-driven environment."

In similar long-term partnerships with Philips, hospitals have been able to significantly improve radiology volumes and cut MRI waiting times in half. These organizations are seeing a 35 percent reduction in technology spending, while improving clinical quality, according to Philips.

[See also: MIT, Philips bullish on open data.]

"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," said Frans van Houten, CEO of Royal Philips, in a press statement.

"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," he said. "This allows them to focus on what matters most: delivering better care to the people in their communities.”

A core part of Philips’ managed services model, officials said, is the focus on continuous improvement through collaboration with key health system partners such as WMCHealth.

A joint onsite WMCHealth – Philips team will work to optimize medical technology deployment and IT integration into a unified platform WMCHealth will be able to maximize the effectiveness of its participation in New York’s Delivery System Reform Incentive Payment, or DSRIP, program, aimed at restructuring the healthcare delivery system by reinvesting in the Medicaid program, with the primary goal of reducing avoidable hospital use by 25 percent over five years.