Sant Pau Hospital and Philips Pioneer Healthcare Technology Partnership Model

Royal Philips ElectronicsThe Hospital de la Santa Creu i Sant Pau and Royal Philips Electronics (NYSE: PHG, AEX: PHI) have signed a 10-year agreement to manage the imaging technology needs of the hospital's imaging diagnostics department. Philips will be responsible for providing and managing the hospital's medical imaging capabilities for the duration of the contract period at a fixed monthly fee.

The agreement illustrates the expanding role that public-private partnership initiatives are playing across the European healthcare sector. Healthcare organizations face a continual pressure to keep at the forefront of developments in imaging technology whilst managing costs. This agreement will enable Sant Pau Hospital to better manage its costs while ensuring it has access to the advanced technologies required by a leading hospital.

"The Hospital de la Santa Creu i Sant Pau and Philips share a common vision for approaching the challenges in diagnostic imaging, as well as a common ambition in terms of the role that our imaging diagnosis department should play in the national and international arenas," said Dr Josep Lluis Soler, deputy manager of the Hospital de la Santa Creu i Sant Pau.

"Meaningful innovation in technology is at the heart of our business, but innovation in how we provide that technology to our customers is increasingly important," said Ignacio Ayerdi, general manager for Philips Healthcare in Spain. "Like our customers, we measure our success on the impact of our technologies on patient outcomes. That's why we are working alongside Hospital Sant Pau, enabling it to provide the best solutions for the key challenges in healthcare, today and in the future."

Under the contract Philips will provide, maintain and replace medical equipment over the next 10 years at a fixed monthly fee without incurring high initial expenditure for the hospital. This ensures that the hospital is equipped with solutions that put clinicians' and patients' needs at the centre of care. Medical equipment will be replaced in line with agreed cycles, based on clinical guidance from Hospital Sant Pau and taking into account any technological advances that occur during the contract period. The agreement includes management of equipment from imaging specialties including MR, CT, nuclear medicine, X-ray and ultrasound.

The contract is part of Philips' managed services program, which incorporates a commitment from the company to provide medical technology, including upgrades and replacements, at a fixed monthly fee. A managed service solution ensures a hospital is guaranteed to be provided with advanced technology, at an assured performance level and at a fixed budget over the contract period. The result is flexible, tailored and reliable business solutions for customers. As a result of the agreement, Hospital Sant Pau will become an international reference site for Philips.

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About Hospital de la Santa Creu i Sant Pau
Hospital de la Santa Creu i Sant Pau dates back six centuries, making it the oldest hospital in Spain. Healthcare provision is focused on Barcelona but extends throughout Catalonia. The centre plays a prominent role in Spain and is internationally renowned. The hospital has distinguished itself in many fields of healthcare, making it a reference centre in several specialties. The centre accepts over 34,000 admissions each year and more than 150,000 emergencies. There are 71 day hospital beds, 634 in-patient beds and 19 surgical rooms.

About Royal Philips Electronics
Royal Philips Electronics of the Netherlands (NYSE: PHG, AEX: PHI) is a diversified Health and Well-being company, focused on improving people’s lives through timely innovations. As a world leader in healthcare, lifestyle and lighting, Philips integrates technologies and design into people-centric solutions, based on fundamental customer insights and the brand promise of "sense and simplicity". Headquartered in the Netherlands, Philips employs approximately 116,000 employees in more than 60 countries worldwide. With sales of EUR 26 billion in 2008, the company is a market leader in cardiac care, acute care and home healthcare, energy efficient lighting solutions and new lighting applications, as well as lifestyle products for personal well-being and pleasure with strong leadership positions in flat TV, male shaving and grooming, portable entertainment and oral healthcare. News from Philips is located at www.philips.com/newscenter.

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