Siemens Healthineers said it’s signed a 15-year, $270 million “value partnership” with Hamilton Health Sciences, a research and teaching hospital based in Oakville, Ontario.
Under the deal, the German imaging company will provide a suite of services and manage the Canadian organization’s network of diagnostic devices. The deal has an option for another 10-year extension and covers everything from procurement to replacement and ongoing maintenance of some 500 imaging systems and monitoring equipment, according to a Jan. 30 announcement.
“The best patient care of the future requires new processes, equipment and partnerships,” President and CEO Rob MacIsaac, said in a statement. “Our partnership with Siemens Healthineers will enable Hamilton Health Sciences to stay ahead of advancements in medical diagnostic and imaging capability, so we can exceed the needs and expectations of the patients we serve for many years to come.”
Officials noted that opting for such a partnership—rather than a straight-up sale—is aimed at mitigating hospital risk, reducing the cost of imaging tech ownership, improving efficiencies and facilitating connectivity across the hospital system. Plus, it ensures that their radiologists have ongoing access to the latest diagnostic tools, they added.
The deal mirrors an ongoing trend in imaging as more hospitals and practices sign long-term, strategic partnerships with vendors. Philips announced a similar such deal in December with Inspira Health, stretching five years and totaling $50 million.
Marty Stempniak has covered healthcare since 2012, with his byline appearing in the American Hospital Association's member magazine, Modern Healthcare and McKnight's. Prior to that, he wrote about village government and local business for his hometown newspaper in Oak Park, Illinois. He won a Peter Lisagor and Gold EXCEL awards in 2017 for his coverage of the opioid epidemic.