The Royal Hospitals has sealed a deal worth over 100m (173 million) with Royal Philips Electronics to provide, maintain and replace state-of-the-art medical equipment for monitoring, diagnosing and treating patients over the next 15 years.

Royal Hospitals Chief Executive, William McKee and Jouko Karvinen, CEO of Philips Medical Systems will shook hands on the contract which will cover equipment in operating theaters, critical care and a brand new imaging center due to be ready for use in 2007.

"This is a significant milestone in the modernization of services at The Royal Hospitals," William McKee said. "It's a good deal for us as service providers - and a good deal for patients who can be assured that equipment vital to their diagnosis and treatment is future-proofed and patient-friendly."


The Managed Equipment Service will ensure that downtime - due to equipment failure - is minimized and that medical equipment will be replaced in line with agreed cycles based on Royal College clinical guidance and incorporating technological advances. The cost risks of keeping pace with fast changing technology in these areas is therefore passed to the private sector.

Jouko Karvinen, CEO of Philips Medical Systems said, "We are extremely proud of the equipment and services agreement between Philips and The Royal Hospitals that will allow physicians to diagnose and treat patients more efficiently and confidently. This alliance symbolizes the future changes in health care, as outsourcing and partner sharing models will increase patient benefits."

The service officially begins from October this year.

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