Marin General Hospital in Greenbrae, Calif., has entered into a 15-year, $90 million agreement with medical equipment manufacturer Royal Philips that will provide the hospital with medical technologies and consulting services.
Netherlands-based Royal Philips will offer Marin “a comprehensive range of advanced medical technologies including imaging systems, patient monitoring, telehealth and clinical informatics solutions as well as clinical education, consulting and design services,” according to a news release.
This is the medical equipment manufacturer's first partnership with a community hospital. Royal Philips began a strategic effort in 2013 to partner with health systems as providers look to invest in telehealth and health information technology.
Royal Philips previously entered into a $500 million contract in June with Westchester Medical Center Health Network in Valhalla, N.Y., and in 2013 it entered into a $300 million agreement with Georgia Regents Medical Center, an academic facility, in Augusta.
Royal Philips will consult with Marin as the hospital begins planning a renovated building equipped with upgraded technology, which is slated for completion in 2020.
The manufacturer will own, manage and maintain all the equipment contracted by Marin, and will consult with and educate the hospital's staff on new purchases, said Matthew Bierbaum, vice president of managed services and enterprise partnerships at Royal Philips. “They're looking to us as an adviser on where healthcare technology is going,” Bierbaum said.
Under the agreement, 85% of equipment purchases must be of Royal Philips technology, said Mark Zielazinski, Marin's chief information and technology integration officer.
Bierbaum said Royal Philips will continue to enter into agreements with more hospitals but could not comment on specifics. “We aim to be a part of the change to an outcomes-based health system,” he said. “That's what hospitals are being asked to do, and we're really working directly with hospitals to achieve that.”
Georgia Regents Medical Center has reported a 35% reduction in technology spending since it partnered with Royal Philips in 2013, according to the news release.
