The agreement with the not-for-profit 478-bed Medical Center was promoted by Philips and Georgia Regents as an innovative response to a changing health care marketplace.
Under the agreement, Philips will provide consulting services, advanced medical technologies for imaging and more, and operational performance, planning and maintenance services for a pre-determined monthly operational cost over the next 15 years. According to the press release, the deal is worth approximately $300 million to Philips and is its largest such agreement as well as the only such business model in the United States.
Currently, the Georgia Regents serves between four to six million people across Georgia and South Carolina. The agreement includes Philips’ imaging systems, patient monitoring and clinical informatics solutions, and lighting and consumer products.
In addition, there is an R &D component to the deal that will make Georgia Regents Medical Center, Children’s Hospital of Georgia, Georgia Regents University Cancer Center and the health system’s numerous outpatient clinics, possible sites for testing new Philips medical technologies.
“By bringing both of us together, it is a new solution the marketplace hasn’t seen,” said David Hefner, CEO of Georgia Regents Medical Center in a video about the deal.