Philips Welcomes Initial Results of Largest Home Healthcare Clinical Study to Date

Royal Philips Electronics (NYSE: PHG, AEX: PHI) welcomed the initial results of a home healthcare clinical study published today by the UK's Department of Health. Involving approximately 6,000 patients at three sites across the UK, the two-year study is believed to be the world's largest of its kind to date. Funded by the Department of Health, the clinical study - known as the Whole System Demonstrator (WSD) program - aimed to provide an evidence base for the adoption of telemonitoring technologies, which could alleviate the mounting financial burden of institutional care for the chronically ill.

The early findings of the WSD program(1) show that if used correctly TeleHealth can deliver a 15% reduction in accident & emergency (A&E) department visits, a 20% reduction in emergency admissions, a 14% reduction in elective admissions, a 14% reduction in bed days and an 8% reduction in tariff costs. More strikingly, they also demonstrate a 45% reduction in mortality rates.

Philips was selected as one of only three TeleHealth technology providers for the WSD program, offering its remote patient management system - called Motiva - to approximately 550 heart failure, COPD (chronic obstructive pulmonary disease) and diabetes patients in the London borough of Newham. Newham is challenged with providing long-term healthcare for more than 17% of its population as well as being ranked as having the highest diabetes rate and death rate from stroke in the UK, thus reflecting the current pressures facing the NHS. Philips further contributed to the WSD study by designing the so-called 'care pathways', i.e. the plan that defines how the patient is monitored, provides information and receives information.

"Philips has been a pioneer in home health care solutions for more than a decade. With a continued commitment to provide innovative solutions for the home that connect patients to their healthcare providers and help monitor and manage chronic health conditions, we can play a significant role in improving the quality of care at lower cost," said Steve Rusckowski, CEO, Philips Healthcare. "The encouraging initial results of the WSD study validate our strategy and will drive continued collaboration with health care providers and home care providers in order to provide meaningful innovations that will address clinical needs and help improve patient lives."

In commenting on the costs associated with using home TeleHealth technologies, Malcolm Hart, director of Philips's UK Home Monitoring activities, said, "Managing chronic conditions costs the NHS billons each year. Philips's remote patient management system - Motiva - would cost the healthcare system up to £80 per month per patient. As the early findings of the WSD program show, if used correctly home monitoring technologies can reduce the number of visits people with long term illnesses need to make to the hospital. And when you consider that a trip to A&E or of admitting a patient to hospital can cost up to £2700 (2), home monitoring technologies can help the NHS make its resources go further without sacrificing quality of care."

Philips's Motiva remote patient management system analyses a patient's vital signs (blood pressure, weight, and blood sugar levels) via home monitoring devices wirelessly linked to a patient's television at home. Anomalies in vital signs are transmitted via secure broadband to healthcare professionals for remote analysis. Through Motiva, patients receive early alerts related to their health condition so that they can take steps at home to improve their health rather than waiting for their condition to worsen resulting in a trip to emergency or a possible hospital admission.

Unlike traditional home monitoring technologies, Motiva delivers educational healthcare content - videos, medication reminders, health tips - based on the remote assessment healthcare professionals make of the patient's regularly monitored vital signs. The educational content aims to "motivate" patients to adapt their day-to-day routine - their nutrition, exercise, medications - to improve the management of their chronic condition.

Looking at the benefits to patients and carers, Yvonne Fenn, General Manager - NE Locality at East London NHS Foundation Trust, explained, "Motiva is easy to personalize to the needs of both patients and healthcare professionals. Care teams can access clinical data and review trends in patients' health to see if health values have gone up or down and ensure a follow up response if needed. Patients in turn feel more confident that someone is keeping an eye on their health whilst they get on with their daily activities at home. In addition, they are supported by educational videos with topics relevant to their healthcare needs empowering them to take control of their condition and make behavioral changes which can help reduce their chances of future complications and readmission to hospital."

With the initial results of the WSD program now available, Philips will work with healthcare professionals to see how technologies like Motiva can be made more widely available to patients suffering from such chronic illnesses as heart disease, COPD and diabetes. Malcolm Hart continued, "The initial results are exciting, since Philips believes there's also a potential for extending home monitoring technologies to patients with less severe conditions or to people who simply want to play a more active role in maintaining their own health. So building on yesterday's announcement we'll continue researching other opportunities for home monitoring technologies in future."

About Royal Philips Electronics
Royal Philips Electronics of the Netherlands (NYSE: PHG, AEX: PHI) is a diversified health and well-being company, focused on improving people's lives through timely innovations. As a world leader in healthcare, lifestyle and lighting, Philips integrates technologies and design into people-centric solutions, based on fundamental customer insights and the brand promise of "sense and simplicity." Headquartered in the Netherlands, Philips employs over 120,000 employees with sales and services in more than 100 countries worldwide. With sales of EUR 22.3 billion in 2010, the company is a market leader in cardiac care, acute care and home healthcare, energy efficient lighting solutions and new lighting applications, as well as lifestyle products for personal well-being and pleasure with strong leadership positions in male shaving and grooming, portable entertainment and oral healthcare.

1. Department of Health: Whole System Demonstrator Program, Headline Findings:
2. Based on a 2007 NHS clinical coding list of hospital fees indicating an elective admission to hospital for 25 days costs £2200 and a non-elective admission for 30 days via A&E costs £2700.