Proving the Business Case for the Internet of Things

Philips helps Westchester in $500m upgrade of medical services

Steve Rogerson
July 1, 2015
The New York based Westchester Medical Center Health Network is investing $500m to transform and improve healthcare for millions of patients across New York’s Hudson Valley. The technology will come from Dutch-giant Philips and will include clinical and business consulting services, as well as advanced medical technologies such as imaging systems, patient monitoring, telehealth and clinical informatics.
The agreement is based on an enterprise managed services model through which Philips will help WMCHealth redefine how quality care is delivered in all areas, including radiology, cardiology, neurology, oncology and paediatrics, as WMCHealth expands beyond a single-campus academic medical centre into a multi-location regional healthcare provider.
The partnership is part of WMCHealth’s transformation to a regional network as the largest provider of integrated health in the Hudson Valley. A 1500-bed health system headquartered in Valhalla, New York, WMCHealth spans seven hospitals and several campuses and locations, along with nearly 300 healthcare partner organisations. Its flagship, Westchester Medical Center, is the only regional resource for complex medical and surgical interventions, covering 15,000 square kilometres in eight counties and serving more than three million people.
“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 Israel, president and CEO of WMCHealth. “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-centred 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.”
The partnership underscores Philips’ commitment to provide services for hospitals and health systems driven by a fundamental shift in US healthcare management towards strategic partnerships for creating long-term patient value, while managing costs, complexity and risk. In similar long-term partnerships with Philips, hospitals have been able to improve radiology volumes and cut MRI waiting times in half. These organisations are seeing a 35 per cent reduction in technology spending, while improving clinical quality.
“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. “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 organisation 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.” 
A core part of Philips’ managed services model 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 optimise medical technology deployment and IT integration into a unified platform that will enhance WMCHealth’s operational excellence. With early and on-going access to the latest Philips health technology, WMCHealth should be able to increase the effectiveness of its participation in New York’s Delivery System Reform Incentive Payment (DSRIP) programme, aimed at restructuring the healthcare delivery system by reinvesting in the Medicaid program, with the primary goal of reducing avoidable hospital use by 25 per cent over five years.