Philips Medical Acquires Stentor

(Brisbane, CA, USA), an information technology (IT) company specializing in systems that store, manage, and distribute digital medical images.

Philips will pay approximately U.S.$280 million in cash for Stentor, subject to receipt of regulatory approval. Stentor's shareholders have approved the agreement and transaction. The acquisition is designed to widen Philips' range of systems and strengthen its position as a healthcare, lifestyle, and technology company. Stentor's picture archiving communications systems (PACS) provide digital medical images from x-rays, computed tomography (CT), and magnetic resonance imaging (MRI) scans, and distribute them wherever they are needed.

These digital images require no film or chemicals to process, are available immediately, require virtually no storage space, and when stored, can never be lost. As the amount, diversity, and intricacy of medical images increases, the capability to store and distribute them rapidly and inexpensively is more important than ever. In the United States and the European Union, hardcopies must be kept on file for seven to 10 years, and it has been estimated that the total lifetime cost of a hardcopy image is US$35.00, versus $3.00 for a digital version. It has also been estimated that computerizing medical records with PACS can offer mid-sized hospitals savings of 10-25% on their operating costs.

The Stentor PACS will integrate medical images to patient records, making them more complete and providing the possibility of better, faster treatment. By offering this, Philips will gain a greater share of the medical IT systems business, a business currently worth U.S.$24 billion per year and still growing.





Related Links:
Philips Medical Systems
Stentor