By Philips ∙ sept. 01, 2021 ∙ 3 min read
According to Becker’s Hospital CFO Report, “Hospitals spend $93 billion per year on medical equipment lifecycle costs – all the activities related to the purchase, support and disposal of medical equipment and technology. Due to a lack of accurate information, internal resources, bandwidth and specialized expertise, even the most diligent hospitals are missing savings of as much as 12–16% of their entire medical equipment lifecycle costs – or $12,000 per bed per year.1“
It’s clear that for every healthcare institution, keeping technology up to date is significant financially. It’s also an essential component in quality healthcare delivery. In fact, it has become a key differentiating factor in improving patient care and establishing a competitive advantage.
Yet successful management of a broad installed base of hardware and software is highly challenging and has brought lifecycle technology asset management to the top of the leadership agenda.
Evidence of this value creation shift to technology as a service (TaaS) is the emergence of new business models such as technology management subscription services coupled with structured upgrade capabilities. Examples in the consumer domain span everything from computer and smart phone upgrades to solutions from Netflix and Amazon.
“Our customers make critical investments when they purchase new equipment and need to maximize these investments by keeping their equipment up to date, completely secure and optimized,” says Jaeyeon Park, Customer Service Delivery Leader, Philips Services and Solutions Delivery, South Korea. “This is why it’s important to shift toward a TaaS model, as it supports the continuous introduction of new and advanced technologies in the future.”
These new always-on subscriptions offer ways of keeping complex systems up to date and compliant at a fraction of the cost of individual upgrades. These services not only help operational leaders manage costs, but also provide confidence to radiology and cardiology department leaders and clinicians that their systems are effective, secure and future proofed.
“Our customers make critical investments when they purchase new equipment and need to maximize these investments by keeping their equipment up to date, completely secure and optimized.”
Jaeyeon Park Customer Service Delivery Leader, Philips Services and Solutions Delivery, South Korea
Equipment performance is key to increasing efficiency, which is vital for hospitals looking to increase their quality of patient care. When departments are efficient, they become stronger and more productive. Proactive upgrades help keep imaging equipment up to date, which is important for managing security risk. These updates also help keep systems well-maintained, compliant and protected from obsolescence, which helps decrease unexpected downtime. However, complicated financial processes and overburdened staff can often create barriers to obtaining needed and timely system upgrades.
With Philips Technology Maximizer, healthcare organizations no longer need to upgrade systems or software on an individual basis. Through regular upgrades and by refreshing existing hardware, this subscription program provides radiology and cardiology departments with the latest software and hardware updates while maintaining cost efficiency through a predictable fee. The subscription service is available for selected Philips MR, CT, IGT and Ultrasound systems and runs in tandem with existing RightFit Customer Service Agreements.
Technology Maximizer plays a key role in healthcare transformation. For example, recent GemSeek research commissioned by Philips found that 86% of customers considered Technology Maximizer to be highly relevant in helping them overcome their key hospital limitations in staying competitive, addressing staff satisfaction and ensuring cybersecurity.2 “Clinicians and hospital leaders know that upgrades are not only vital to the performance and value of these systems, but also an important aspect to ensure that the technology is compliant and safeguarded against security issues,” says Kees Wesdorp, Business Leader, Diagnostic Imaging at Philips. “Technology Maximizer addresses all these concerns while helping our customers make the most of their imaging investments.”
Article
[1] Robson, Peter, CEO Miga Solutions, A new way of thinking about medical equipment costs, Becker’s Healthcare, Hospital CFO Report, 11/13/2016, https://www.beckershospitalreview.com/finance/a-new-way-of-thinking-about-medical-equipment-costs.html, accessed on 02/08/2020. [2] GemSeek research commissioned by Philips, No 151, USA.
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