New study demonstrates improved patient flow and financial benefits of Philips’ eICU Program for managing critical care populations

Amsterdam, the Netherlands – As health systems seek new cost-effective ways to manage their growing populations in an era of value-based care, Royal Philips (NYSE: PHG, AEX: PHIA) today announced the acceptance for publication of a study in CHEST¹ that demonstrates the benefits of intensive care unit (ICU) telemedicine. The study results establish that the Philips eICU Program with centralized bed management control increased case volume by up to 44 percent and improved contribution margins by up to 665 percent, or $52.7 million. 

The study assessed three clinical models of ICU care over time: 1) traditional ICU care without telemedicine, 2) centralized tele-ICU care, and 3) tele-ICU care with a logistical center to improve ICU bed utilization. 

Researchers compared case volume (number of patients cared for) and contribution margins (total case revenue minus direct costs, including costs of the eICU Program) for each model that revealed:

• An Intensive Care unit managed by a tele-ICU improved case volume by 21 percent over traditional models
• A centralized tele-ICU model of care improved contribution margins by 376 percent ($37.7 million compared to $7.9 million) due to increased case volume, shorter lengths of stay (LOS) and higher case revenue relative to direct costs
• A tele-ICU, when co-located with a logistical center, improved case volume 38 percent over traditional models 
• A tele-ICU with added logistical center and quality care standardization improved contribution margins by 665 percent ($60.6 million compared to $7.9 million)
• This care delivery model allowed recovery of the initial capital costs of the ICU telemedicine program in less than 3 months

The study, entitled “ICU Telemedicine Program Financial Outcomes,” was authored by Craig M. Lilly, M.D., Professor of Medicine, Anesthesiology and Surgery at the University of Massachusetts Medical School and Director of the eICU Program at UMass Memorial Medical Center. The study looked at more than 51,000 patients across seven adult ICUs on two campuses of an 834 bed academic medical center. While tele-ICUs have previously been associated with improving mortality rates and length of stay, this study is the first to address in depth the financial outcomes.

“The ability of tele-ICU programs to increase case volume and access to high quality critical care while improving margins suggests a strong financial argument for wider adoption of ICU telemedicine by health systems and intensivists,” said Dr. Lilly. “It has been well documented that properly implemented telehealth programs can have a significant impact on patient outcomes, and this study now supports the financial investment behind it.”

“An ICU bed costs approximately $2 million to build, and this study demonstrates a significant increase in case volume by better utilizing existing resources,” said Tom Zajac, Chief Executive Officer and Business Leader, Population Health Management, Philips. “This shift enables care for expanding populations without having to build and staff additional ICU beds, thus helping hospitals thrive in a value-based care environment.”

The Philips eICU Program is part of a suite of enterprise telemedicine solutions delivered by Philips to help improve outcomes, provide better value and expand access to care in both the hospital and the home. These programs help address multiple cohorts within a population ranging from the highest acuity patients in the hospital, to discharge transition and chronic patient management, to prevention and healthy living for the general population. These programs, which are part of the larger Philips Population Health Management approach, use a common proactive care model to clinically transform the delivery of care to address growing clinician shortages while helping to improve patient outcomes. 

Philips will be showcasing the eICU Program and the launch of CensusMosaic as part of its Tele-ICU software suite eCareManager at the 46th Critical Care Congress (SCCM) in Hawaii January 21-25 2017. Our comprehensive portfolio of advanced analytics solutions in Population Health Management will also be at the HIMSS Conference and Exhibition in Orlando, Fl, Feb. 19-23, 2017. For more information on Philips’ presence at HIMSS, visit https://www.usa.philips.com/healthcare/about/events-calendar/himss. For more detail on the full suite of Philips clinical telemedicine programs, visit www.philips.com/telehealth.

¹ Lilly CM,  Motzkus C, Rincon T, et al.  ICU Telemedicine Program Financial Outcomes. Chest. http://dx.doi.org/10.1016/j.chest.2016.11.029