Philips Signs “Smart Hospital Deal” in Ontario

Royal Philips (Philips; Amsterdam, The Netherlands) will provide two Mackenzie Health (Richmond Hill, ON, Canada) hospitals with medical technology procurement, management, and maintenance services over the next 18 years.

The managed equipment services model will allow Mackenzie Health to have access to state-of-the art equipment--including those of other vendors—and services under a single payment structure that includes procurement, installation, systems integration, maintenance and timely updates to ensure that the hospitals will be provided with the medical technologies that their departments require for the optimal delivery of care. The collaboration further includes a broad range of services, including room design, cloud-based predictive analytics, and diagnostic technologies.


Under the deal, which is valued at USD 225 million, Philips will offer systems interoperability, diagnostic imaging equipment utilization, radiology practice management, patient-centric design, and alarm management offerings to the existing Mackenzie Richmond Hill Hospital and the future Mackenzie Vaughan Hospital, which is slated to be completed in 2019. Philips and Mackenzie will also work to incorporate all manner of connected health technologies, as well as explore how to elicit patient data that can be used to improve clinical outcomes and reduce costs.

“The new Mackenzie Vaughan Hospital has the potential to transform the lives of residents in our community, who are in need of quality care throughout their healthcare journey,” said Altaf Stationwala, President and CEO of Mackenzie Health. “We chose Philips not only for their products, but also for their expertise and solutions. Mackenzie Health is committed to working with our healthcare partners to deliver a state-of-the-art hospital as part of our vision to create a world-class health experience for the people of Southwest York Region and beyond.”

“Forward-thinking organizations such as Mackenzie Health understand that in order to transform healthcare and deliver the type of care their communities need and deserve, they need public-private partnerships with industry-leaders like Philips that have a proven track record of industry expertise and innovation," said Iain Burns, CEO of Philips Canada. “It takes more than just technology to deliver the right solutions, you need to have a deep understanding of the consumer and the healthcare industry to apply best practices for effective patient-centric care.”

Opened in 1963, Mackenzie Richmond Hill Hospital has 350 acute, complex and rehabilitation beds and serves more than 500,000 residents in Southwest York Region, one of the fastest growing communities in Canada. The new 350-bed “smart” Mackenzie Vaughan Hospital will be the first new hospital in the area in more than 50 years, and will embrace connected health technologies in a state-of-the-art emergency department (ED), modern surgical services and operating rooms, medical imaging, specialized ambulatory clinics, and a flexible design that will enable it to evolve as new thinking and best practices emerge.

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Royal Philips
Mackenzie Health