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Tue, September 19, 2006 : Last updated 10:34 am (Thai local time)



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Home > Business > 'Consumerised' healthcare era set to beckon





'Consumerised' healthcare era set to beckon

Royal Philips Electronics foresees a day not too far off when "consumerised" healthcare will take hold and people outfit their homes with medical equipment

Ivo Lurvink, chief executive of consumer healthcare solutions at Philips, even predicts that in the near future, every home will have a defibrillator, just like most homes today have a fire extinguisher.

And a project called MyHeart, partially funded by the European Union, Philips and other European firms, including Nokia and Vodafone, has developed "intelligent" biomedical cloths that can monitor vital signs for people with cardiovascular disease.

One solution is to wear the intelligent cloth round the waist. But the project has also produced electronic underpants for women who might feel uncomfortable about wearing an electric cloth around their waist.

Paul Smit, senior vice president for strategy and business development at Philips, said the shift to home-based medical treatment, made possible by development in wireless electronics and other technologies, could help reduce countries' and individuals' healthcare costs, while improving the quality of lives and services.

Lurvink said it might take some time before the consumer healthcare vision fully materialised, due to the cost of some products. For example, the suggested retail price of the Philips home defibrillator in the US and in EU markets is currently as much as US$1,500 (Bt55,900).

Nevertheless, Lurvink said it would be easier for Asian consumers to accept the personal healthcare system than it would be for Europeans or Americans. "You [Asians] are used to taking control of your own health," he said.

"Besides affordability, availability [of healthcare] also plays a role in emerging markets," said Joroen Bruning, another Philips executive.

Lurvink said Philips was connecting healthcare and lifestyles by developing and designing products that are easy for patients to use. One such system is Motiva, which helps patients connect with their nurses and caregivers remotely through a user-friendly television-based platform.

He said his company's recent $700-million acquisition of US-based emergency-response company Lifeline Systems reflected the firm's mission to become a leading consumer healthcare company.

"It's really a 'consumerised healthcare' [scenario], since 90 per cent of their patients paid for the services themselves [as opposed to insurance companies or the government]," said Lurvink.

Lurvink said that most personal healthcare products and services were not yet affordable for most consumers in developing nations.

"I can't get products that consumers in the Philippines may buy now. I will use CE [consumer electronics] know-how to bring costs down, such as in logistics and supply-chain management and in producing in low-cost locations," he said, adding that consumers in developing countries might be able to purchase the company's home healthcare products and services.

Due to regulatory requirements, many healthcare products are made in high-cost countries. The healthcare industry also has not yet had to face serious cost pressures, said Lurvink.

While many people recognise Philips as a leading consumer-electronics producer, the firm is second only to General Electric as the largest supplier of medical systems in the world. The company's healthcare business contributes the largest chunk to its profit, which totalled ¤2.87 billion (Bt136 billion) last year.

Pichaya Changsorn

The Nation

Amsterdam








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