Philips restructuring healthcare business

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Royal Philips Electronics will split into three discrete firms, focused on lighting, consumer lifestyle and healthcare, which the IT giant believes will simplify its structure as it evolves into a market-driven, people-centric global leader in its fields, the company announced today.
Philips said it will combine its Home Healthcare Solutions, formerly the Consumer Healthcare Solutions unit, with Philips Medical Systems, and rename them Philips Healthcare.

"While our healthcare strategy is already people-centric, focusing on improving patient outcomes in specific care cycles such as cardiology, oncology and critical care from the hospital to the home, we have now developed a comprehensive consumer lifestyle strategy that takes into account the evolving needs of the modern, lifestyle oriented consumer," said Gerard Kleisterlee, Philips' president and CEO. "As structure follows strategy, successful implementation requires a further realignment of the organization."

As a result of the changes, Steve Rusckowski, the current CEO of Philips Medical Systems, will become CEO of Philips Healthcare on Jan. 1, 2008.