Royal Philips - On the Road to Monarch of Medical Equipment

Nearly a decade ago, Royal Philips Electronics ofbiggest independent supplier of Cath Lab
the Netherlands fathered the Philips Healthcaremonitoring and reporting systems.
Services group and appears determined that theirIn its drive to become King of the Medical
"crowned prince" will soon become King of theEquipment industry, Philips Healthcare Services has
medical equipment industry. Apparently, this moveobtained 6 businesses since its inception in 1998.
was in response to GE Medical Systems�Every single one of the six has expanded Philips'
announcement that it planned on becoming kingofferings to include a total of ten medical imaging
itself of the ultrasound industry before the yearmodalities, from CT to MRI to x-ray, along with
2000. Not to be outdone, Philips from thedefibrillation and cardiac monitoring equipment as
beginning year began an acquisition frenzy so theywell as image and information management
could expand its subsidiary's product portfolio wellsolutions.
beyond its initial product line, which began in 1918So, has Philips arrived at the royal industry castle
with medical x-ray tubes.yet? Some believe so. As a matter of fact, prior
Concluding Philips Healthcare Services beginningto the last two acquisitions, Palo Alto's "growth
year, Philips Electronics added digital ultrasoundconsulting" company Frost & Sullivan seemed to
systems to PHS's portfolio by acquiring ATLthink so. In 2004 Frost & Sullivan told everyone
Ultrasound of Washington. Only 2 years later, inthey were awarding Philips FIVE awards for
late 2000, Philips expanded into nuclear medicine"technology and services innovation and industry
by absorbing ADAC Laboratories of California.leadership". Philips was honored for making
In 2001 was a watershed year as Philips shifteddistinguished contributions to the cardiac
into high gear by bringing on two more businessesresuscitation and medical imaging industries and for
and their product lines - Agilent and Marconiproviding leadership in these market segments.
Medical. By procuring Agilent Technologies'Was Frost & Sullivan just looking for a spot at
Healthcare Solutions Group of Massachusetts,the royal court or were these legitimate kudos?
Philips shot past GE Medical as the leader of theProbably the later. F&S conducted interviews with
ultrasound sector. Philips absorbed Agilent'smany market players along with their customers
expertise in the areas of diagnostic cardiology,and suppliers, and reportedly did extensive
automated defibrillators, patient monitoring, andresearch into the medical equipment technology
point of care diagnostic systems.field.
Marconi Medical Systems of Ohio, formerly PickerOne of the five awards included the regent-like
International, was already a huge part in its owntitles of "Medical Imaging Company of the Year",
right among gigantinc global CT suppliers. With"New Care Setting of the Year", and "Medical
Marconi, Philips gained cutting-edge multi-slice CTImaging Technology of the Year". The other 2
technology along with cardiology, oncology andwere for Technology Leadership and Services
PET/CT imaging applications. These twoInnovation Leadership.
acquisitions in one year landed Philips in the topThe response of Jouko Karvinen, president of
three for all of the medical equipment industryPhilips Medical Systems, to the what he recieved
along with giants Siemens and GE Medical - somesounded like the exact same of an industry
say as number 2.coronation speech. He stated, "We proudly
In 2005, the expansion kept going as Philipsrecieve the Frost & Sullivan Awards as an
bought Stentor, Inc. of California, providerindependent validation of Philips business and
best-in-class picture archiving and communicationstechnology leadership. These 5 awards are more
systems (PACS). This move allowed Philips to aidindicators that Philips continues to set the industry
its clients successfully control the many amountsstandard for developing innovative products that
of imaging data created by its medical scanners.help treat patients and save lives."
Then, the following year, the expansion continuedRoyal Philips. Long live the King!
as Philips adopted Witt Biomedical Corporation, theNOTE:Use of this article requires links to be intact.