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John R. Fischer, Senior Reporter | August 01, 2019
The sale of the healthcare information solutions business from Carestream Health to Royal Philips has been completed in a majority of countries where it operates.
The business segment now joins the Dutch healthcare giant's Enterprise Diagnostic Informatics business group in 26 out of 38 nations, providing Philips’ customer base with access to tools for simplifying medical imaging management, enabling effective collaboration and enhancing patient care.
“Philips is a leading health technology company with a rich history of innovation, a market-leading image-guided therapy business, and operations in more than 100 countries. Joining with Philips will help the HCIS business advance and take its achievements to a higher level,” Robert Salmon, director of corporate communications for Carestream, told HCB News.
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Among the items that will now fall under Philips' IT portfolio are Carestream's best-in-class VNA, diagnostic and enterprise viewers, multimedia reporting, workflow orchestrator and clinical, operational and business analytics tools.
Announced in early March, the acquisition provides Philips with access to Carestream’s cloud-based enterprise imaging platform, which includes its diagnostic and enterprise viewers, multimedia reporting, workflow orchestrator and clinical, operational and business analytics tools. It also equips it with approximately 900 employees as part of its healthcare informatics business within the diagnostics and treatment segment.
The sale stems from Carestream's desire to focus on continuing the growth of its medical imaging systems and X-ray equipment, as well as its medical and dental films, non-destructive testing films and industrial imaging systems, and precision coating services, all of which are unaffected by the sale.
The company seeks to provide more options in these areas to its customers by further developing its radiology portfolio. Plans to do so include:
• Expanding its mobile X-ray imaging platform with the DRX-Revolution Nano System that features carbon nanotube technology for reduced size and weight of the unit.
• Delivering a new DRX digital detector that provides high-quality diagnostic image capture with lower radiation dose.
• Investing in a center of excellence team to deliver value-tier digital X-ray systems for use by a wide range of healthcare providers.
• Developing a new software platform with advanced features and optimized workflow for its DRX room and mobile X-ray imaging systems.
• Delivering a high-resolution 3D imaging system to help orthopedic specialists make more accurate diagnostic and treatment decisions by capturing weight bearing images.
"Carestream's cloud-enabled enterprise imaging platform will augment Philips' current enterprise imaging solutions for imaging data management, workflow enhancement, and advanced visualization and analysis," Ben Zwirs, senior group press officer for the group press office at Philips, told HCB News. "Moreover, Carestream's HCIS business and installed base in Latin America, Europe and Asia are highly complementary to Philips' leading position in high-end radiology informatics in North America."
Philips plans to complete the acquisition of Carestream's HCIS business in the remainder of countries where it operates throughout the course of 2019.
Financial details of the closing transaction were not disclosed.