"Russia is the most important market for PHILIPS"

As part of the first life cycle contracts, PHILIPS will supply Moscow hospitals with the most innovative equipment from its portfolio: 36 Ingenia ambition MR scanners and 14 "Azurion 7" angiographic systems, and then will ensure the operability of this equipment for ten years. Maxim Kuznetsov, CEO of PHILIPS in Russia and the CIS, told about this.
Maxim Kuznetsov
CEO of PHILIPS in Russia and the CIS
– Please tell us a little about the company. How long has it been operating in Russia and Moscow?

– It is interesting that the history of Philips in Russia is more than 120 years old. In 1898, one of the founders of the company, Anton Philips, signed a contract for the supply of 50,000 candle lamps with a carbon filament for indoor lighting in the Winter Palace in St. Petersburg. This was the first international project of the company.

Philips has undergone a major transformation over the past decade from a highly diversified company to a fully focused healthcare technology organization. We strive to create solutions to improve the quality of medical care at all stages - from maintaining a healthy lifestyle, prevention and early diagnosis to treatment and home care. Our company occupies a leading position in the field of medical imaging, patient monitoring and IT systems for healthcare.

Russia is the most important market for Philips, and today we are witnessing its active growth. The development of new forms of cooperation with Russian customers, in particular with the Moscow Government, is one of our priorities.

– The main goal of the company is to take care of people. What are your commitments?

– Philips' mission is to improve the lives of 2.5 billion people annually by 2030 through meaningful innovation. In our work, we primarily focus on four goals: improving clinical outcomes, increasing patient and physician satisfaction, and reducing the cost of treatment. By creating new equipment, end-to-end IT and consulting solutions, we strive to ensure that our innovations help take the step towards the healthcare of the future.

– Why did you decide to take part in tenders for concluding life cycle contracts with Moscow? How profitable is such cooperation for the company?

– Philips has almost 15 years of international experience in the LCC implementation. In total, the company has concluded more than 45 life cycle contracts in 16 countries. The format turned out to be promising for everyone: manufacturers and suppliers of medical equipment, customers, medical institutions. We are glad that the Moscow Government has decided to develop LCC for the supply of medical equipment and now we can apply our experience in Russia.

The benefits of LCC for a medical institution are obvious: it gets at its disposal innovative equipment that will serve without downtime due to timely software updates, maintenance and repair. In this case, the risks for downtime are assumed by the supplier – this is spelled out in the contract.

The supplier also benefits from this format: thanks to the large volumes of tenders being held, he gets the opportunity to plan and optimize his own costs. In general, the life cycle in the form in which it exists in Moscow is balanced for all sides and reduces financial and reputational risks, including for suppliers. A huge role was played by the deep study of all aspects of the LCC model by the Moscow Government, including with the involvement of the City Investment Management Agency, which has experience in supporting similar projects in other industries.

– What do you supply for the city according to the LCC and on what terms?

– The first life cycle centers were concluded at the beginning of 2020. According to their terms, Philips undertakes to supply Moscow medical institutions with the most innovative equipment from its portfolio: 36 Ingenia Ambition MR scanners and 14 Azurion 7 angiographic systems, and then ensure the operability of this equipment for ten years. The equipment has already begun to arrive at the city's hospitals.

In the fall, we signed three more similar contracts, this time for the supply of 284 expert ultrasound systems to clinics in Moscow and the Yamalo-Nenets Autonomous Okrug with constant equipment maintenance for 7-10 years.

– Do you plan to continue to participate in tenders for the conclusion of the LCC? Perhaps you are developing other forms of public-private partnership?

– In our opinion, LCC is the most economically viable model of equipment ownership. We plan to continue to put forward our proposals at tenders for the conclusion of such contracts and we hope that more and more Russian regions will adopt the Moscow practice.

As for other options for cooperation, we are always ready to try new formats. For example, we have been developing our offer in the field of medical equipment leasing for several years now. In general, we view new forms of cooperation with customers as an incentive to improve our internal processes, strengthen our team and develop new competencies.

– Philips was named the world's most innovative MedTech company in 2020 by the Boston Consulting Group. How did you manage to reach this level?

– Philips places great emphasis on research and development in medical technology. We are focused on not just keeping up with the times but creating and anticipating trends. We equip equipment with the most advanced software and offer clinics complex IT solutions. So, in 2019, the company invested 1.9 billion euros in research activities. We have our own global network of Philips Research laboratories, one of its divisions is located in Skolkovo. Laboratory specialists develop projects in the field of machine learning, natural language processing, medical image analysis.

In addition, we support scientific and practical research in Russian clinics. The Philips Clinical Science team accompanies projects at all stages of implementation. Physicians annually present the results of research conducted with the participation of Philips at the largest world and Russian congresses, and also publish them in professional publications. Breakthrough technologies from Philips bring the healthcare of the future closer. One example is the BlueSeal microcircular cooling technology, which allows MRIs to use 7 liters of liquid helium instead of 1500. This gives a number of advantages: less equipment weight, ease of installation. In addition, helium is sealed at the manufacturing stage and does not require replenishment throughout the life of the tomograph - this saves hospitals time and money. MRI scans with BlueSeal technology are already appearing in Russia - in particular, we supply them to Moscow clinics according to the LCC.
E-mail: pressprom@mos.ru
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