Philips and Inspira Health Announce $50 Million, Long-term Strategic Partnership to Transform Patient Care for Residents of Southern New Jersey

Royal Philips (NYSE: PHG, AEX: PHIA), a global leader in health technology, and Inspira Health (Inspira), today announced a strategic 5-year partnership agreement worth $50 million to standardize patient monitoring and drive innovation in diagnostic imaging solutions in order to enhance patient care and improve clinical workflow performance. The agreement will make Philips solutions available to more than a dozen Inspira health facilities, helping the charitable non-profit fulfill its commitment to provide access to the highest quality medical services. The contract also includes training and services that will maximize Inspira's operational efficiency.

Inspira is the region's leading network of health care providers, delivering the full continuum of primary, acute and advanced care services. The health system is comprised of three hospitals, a comprehensive cancer center, several multi-specialty health centers and a total of more than 150 access points. The health network is also opening a state-of-the-art hospital this month and an adjacent leading-edge cancer center in January in Mullica Hill, New Jersey. Both will incorporate Philips technology to create an integrated care facility centered around patient needs.

Long-term strategic partnerships (LSPs) are a growing trend used within hospitals and health systems to better manage the cost and complexity of their technology investments over a defined period, while expanding quality access to advanced medical care in order to improve patient outcomes. Philips is a leader in LSPs and will provide Inspira with the latest in diagnostic imaging solutions, patient care monitoring systems, and minimally invasive solutions such as the Philips Azurion image-guided therapy platform. Driven by benefits for patients and care providers, minimally invasive therapies such as the catheter-based treatment of certain tumors, aneurysms, obstructed blood vessels, heart rhythm disorders and defective heart valves continue to grow fast. These therapies are also more cost-effective and support Inspira's vision of providing quality care for its communities, with a focus on cancer and cardiac care.

"At Inspira, we are focused on leveraging technology that enables our teams to provide the best possible care. By working closely with Philips, we have an opportunity to stay at the cutting edge of imaging and patient monitoring," said John DiAngelo, president and CEO, Inspira Health. "This partnership will bring countless benefits to our patients, physicians and clinical teams. It comes down to ensuring that each individual community within our broader community is taken care of."

Long-term strategic partnerships also provide forward-thinking organizations like Inspira with a predictable and stable financial model, while helping to take the guesswork out of technology adoption. It will allow Inspira to standardize its diagnostic imaging and patient monitoring technologies across the network, making data more integrated and allowing clinicians to get access to the right patient data, which will facilitate better diagnosis and treatment.

"At Philips we want to improve the lives of 3 billion people a year by 2030. In order to achieve that goal, we need to work closely with forward-thinking health systems like Inspira that can help us to understand the unique challenges of the communities it serves and deliver the right care solutions," said Vitor Rocha, Chief Market Leader, Philips North America. "Together we can help achieve the Quadruple Aim and focus on what is most important ? providing the best quality care for patients."

Philips and Inspira announced the new partnership at the Radiological Society of North America 2019 Annual Meeting where Philips is showcasing the power of precision diagnosis with clinical capabilities, simplified workflows and integrated artificial intelligence.

For more information about Inspira Health, visit www.inspirahealthnetwork.org.

About Royal Philips

Royal Philips (NYSE: PHG, AEX: PHIA) is a leading health technology company focused on improving people's health and enabling better outcomes across the health continuum from healthy living and prevention, to diagnosis, treatment and home care. Philips leverages advanced technology and deep clinical and consumer insights to deliver integrated solutions. Headquartered in the Netherlands, the company is a leader in diagnostic imaging, image-guided therapy, patient monitoring and health informatics, as well as in consumer health and home care. Philips generated 2018 sales of EUR 18.1 billion and employs approximately 80,000 employees with sales and services in more than 100 countries. News about Philips can be found at www.philips.com/newscenter.

About Inspira Health Network

Inspira Health is a charitable nonprofit health care organization and a regional leader in physician training, with approximately 160 medical residents and fellows in nine nationally accredited specialty programs. The system, which traces its roots to 1899, comprises three hospitals, a comprehensive cancer center, several multi-specialty health centers and a total of more than 150 access points. These include urgent care; outpatient imaging and rehabilitation; sleep medicine labs; cardiac testing facilities; digestive health and wound care centers; home care and hospice; and more than 30 primary and specialty physician practices in Gloucester, Cumberland, Salem, Camden and Atlantic counties.

Together with its medical staff of more than 1,300 physicians and other care providers, as well as more than 6,000 employees, Inspira Health provides evidence-based care to help each patient achieve the best possible outcome. Accredited by DNV Healthcare, the system's clinical and support staffs are focused on providing quality care in a safe environment. For more information about Inspira Health, visit www.InspiraHealthNetwork.org or call 1-800-INSPIRA.