Amsterdam, the Netherlands – July 20, 2016 – Royal Philips (NYSE: PHG, AEX: PHIA) today announced that it has signed an agreement to acquire Wellcentive, a leading US-based provider of population health management software solutions. Financial details of the transaction will not be disclosed.
In population health management, Philips already offers enterprise telehealth, home monitoring, personal emergency response systems (PERS) and personal health services that address multiple groups within a population from intensive ambulatory care for high-risk patients to prevention and personal health programs for the general population. Wellcentive complements Philips’ portfolio with cloud-based IT solutions to import, aggregate and analyze clinical, claims and financial data across hospital and health systems to help care providers deliver coordinated care that meets new healthcare quality requirements and reimbursement models.
Upon completion of the transaction, which is expected later today, Wellcentive and its employees will become part of the Population Health Management business group within Philips. Tom Zajac, CEO of Wellcentive and an experienced healthcare industry leader, will be appointed to lead this business group.
“With this strategic acquisition, we will strengthen our Population Health Management business and its leadership, as health systems gradually shift from volume to value-based care, and provide more preventative and chronic care services outside of the hospital,” said Jeroen Tas, Philips’ CEO Connected Care & Health Informatics. “Our sweet spot is at the point of care as we give consumers, patients, care teams and clinicians the tools, such as remote monitoring solutions and therapy devices, to optimize care. Wellcentive’s solutions will provide our customers with the ability to collect data from large populations, detect patterns, assess risks and then deploy care programs tailored to the needs of specific groups.”
“Over the past 11 years, the Wellcentive team has focused on delivering data-driven clinical, financial, and human outcomes for our customers as they provide care management for more than 30 million patients,” said Tom Zajac, CEO of Wellcentive. “Combining forces with Philips and its broad portfolio of health technologies and global reach will create a great foundation to accelerate growth in connected care – from healthy living and prevention, to diagnosis, treatment and home care – enabling consumers, providers and health organizations to benefit from our combined, stronger offering in population health management.”
Wellcentive’s applications will be integrated in the Philips HealthSuite cloud, the company’s digital enabler for the next generation of connected health solutions. One example of Philips’ existing care programs for population health management is the Intensive Ambulatory Care (eIAC) program: this combines telehealth technologies and population health management software to help care teams monitor and coach patients at home. It aims to improve patient outcomes, care team efficiency, and prevent patients from entering the hospital, where costs are significantly higher.
Founded in 2005 and headquartered in Atlanta, Georgia, Wellcentive employs approximately 115 employees. The company has a strong customer base in the US.
For further information, please contact:
Philips Group Communications
Tel.: +31 6 10888824
Philips Investor Relations
Phone: +31 20 5977055
About Royal Philips Royal Philips
(NYSE: PHG, AEX: PHIA) is a leading health technology company focused on improving people’s health and enabling better outcomes across the health continuum from healthy living and prevention, to diagnosis, treatment and home care. Philips leverages advanced technology and deep clinical and consumer insights to deliver integrated solutions. The company is a leader in diagnostic imaging, image-guided therapy, patient monitoring and health informatics, as well as in consumer health and home care. Headquartered in the Netherlands, Philips’ health technology portfolio generated 2015 sales of EUR 16.8 billion and employs approximately 69,000 employees with sales and services in more than 100 countries. News about Philips can be found at www.philips.com/newscenter