Kaiser Health News, July 17, 2013
Medical equipment manufacturers operate largely on a "supply and demand" model: Hospitals buy their multi-million dollar machines, use them for a few years, and then the process starts again. But Philips Healthcare and a hospital system in Georgia are betting on a new business model, one that has risks and rewards for both the hospital and the manufacturer. Philips is now going to provide the Georgia Regents Health System with everything from equipment and training to maintenance ? potentially even light bulbs and tooth brushes. But as part of the 15-year, $300 million agreement, Philips also gets something it hasn't had before: complete access.