The Philips Healthcare portfolio includes imaging systems and patient-monitoring technologies.
While the contract does not require the 503-bed public academic medical center to exclusively purchase Philips devices and equipment, the two organizations plan to incorporate more Philips Healthcare products into all care areas, including radiology, cardiology and oncology. The hospital will also have access to products in Philips' other business units, such as lighting and oral healthcare.
Many hospitals are seeking to reduce variability within their supply chain in an effort to reduce the costs of pricey medical technologies. Hefner said the alliance is expected to help the organizations shift from having a transactional relationship to participating in a new delivery model. Both organizations have also established performance metrics.
“It's now about them helping us deliver patient care,” he said.
Philips will retain ownership of the medical technologies and equipment as well as responsibility for managing the equipment and providing education to staff. In addition, the company plans to test new products and conduct research and development programs at the Georgia Regents facility.
Hefner said he expects to see 20% savings over the course of the contract. “We're going to get much more value for our dollar,” he said.
As part of the agreement, which has been under discussion for 18 months, the hospital will receive new lower-dose imaging systems as well as newer patient monitoring technologies, according to Hefner and Steve Laczynski, president of Philips Healthcare Americas.
Hefner noted that the organizations submitted an advisory opinion to the HHS' inspector general's office this week to stem anti-kickback concerns about the alliance.
Follow Jaimy Lee on Twitter: @MHjlee