Market Overview

MUSC and Siemens Healthineers Form Strategic Partnership to Disrupt and Reshape Health Care Delivery


Institutions aim to enhance value-based care through application of
research and engineering expertise

The Medical University of South Carolina (MUSC) and Siemens Healthineers
have formed a first-of-its-kind strategic partnership with the mutual
goal of advancing the quality of health care in South Carolina. The
partnership will capitalize on the coupling of MUSC's clinical care,
research and education expertise with Siemens Healthineers' engineering
innovations and workflow-improvement capabilities.

"We are leveraging a longstanding relationship to reshape what we can
both deliver in health care," said David J. Cole, M.D., MUSC president.
"Our nation is demanding that we address our fractured, costly and
inefficient health care delivery systems. As the leading academic health
sciences center in this state, MUSC's purpose must be to drive the
highest quality care for our patients at the lowest cost through
commitment and partnerships. In discussions with the Siemens
Healthineers team, we discovered a high degree of alignment with these
concepts, and we are very excited to have them move forward with us. Our
mutual goal is to not merely provide the best care possible for just our
patients; we will define the new gold standard for others to follow."

Specifically, this new agreement will focus on driving performance
excellence at MUSC and generating significant clinical and value-driven
innovations in focused target areas including pediatrics, cardiovascular
care, radiology, and neurosciences.

"Ultimately, our goal is to enable health care providers to get better
outcomes at lower cost. We will achieve that by empowering MUSC
clinicians on this journey through four specific areas of focus –
expanding precision medicine, transforming care delivery, improving the
patient experience, and digitalizing health care," said Dave Pacitti,
president of North America for Siemens Healthineers. "These four core
values of Siemens Healthineers are representative of the goals of our
strategic relationship with MUSC, and we hope that the spirit of this
flagship partnership will initiate a trend in value based care within
the industry."

For example, MUSC and Siemens team members plan to drastically reduce
the time it takes for severe stroke patients to receive treatment. The
national standard for stroke care sets the goal at less than a 90-minute
average from entry to the hospital to the start of the surgery to open a
blocked blood vessel. While MUSC currently provides care for severe
stroke patients well below that marker, this partnership creates an
opportunity to do even more, with the aim of setting new industry-wide
standards and increasing the number and variety of good outcomes for
patients post-stroke.

"South Carolina sits within our nation's stroke belt, and by combining a
world-class stroke program with the incredible power of Siemens
Healthineers, we expect to achieve a level of excellence in stroke care
that has never been routinely achieved in everyday practice," said
Patrick J. Cawley, M.D., MUSC Health CEO and MUSC vice president for
health affairs, university. "The faster that we can get patients
suffering from a stroke into treatment, the more likely a patient can
return to a productive and healthy life. It's ambitious, but it's
necessary if we want to achieve that alignment of increased efficiency,
cost-effectiveness, and the highest quality of severe stroke care."

Another example of enhanced collaboration related to the new strategic
partnership is the enhanced application of "digital twin technology." A
kind of artificial intelligence, a digital twin is a digital replica of
a physical asset, process, or system. A digital twin has been deployed
to optimize the patient and family experience and maximize efficiency at
the MUSC Shawn Jenkins Children's Hospital and Pearl Tourville Women's
Pavilion, a new facility currently under construction on the Charleston
peninsula. This digital replica enables planning teams to quickly
determine the impact of changes that would be costly, if not impossible,
to test in the real world, and helps them forecast how well possible
workflow solutions or health innovations may actually work in that new

Lisa Saladin, Ph.D., MUSC executive vice president for academic affairs
and provost, sees the strategic partnership as capable of removing some
systematic barriers to learning about and implementing health care
innovations. "This partnership creates an unprecedented opportunity for
MUSC students to share and learn from individuals they would otherwise
not have access to in a more traditional educational setting," she said.
"I anticipate that our students will share and engage with health care
data and informatics in new ways, be exposed to cutting-edge
technologies designed to improve quality of patient care and provider
work flows, and participate in research endeavors they never would have
thought possible. This strategic partnership will better prepare them
for the future of health practice."

For decades, MUSC and Siemens Healthineers have enjoyed successful
affiliations centered around the development and utilization of
specialty healthcare equipment for clinical and laboratory settings.
While these affiliations will continue, this strategic partnership is
intended to progress the relationship to the next level by pooling
resources to promote clinical innovation, research-driving development,
and education.

"The partnership with MUSC is globally unique for Siemens Healthineers
and a bold move for writing a new chapter for health care in the 21st
century. Like no other company, we can help transform care delivery in
everyday clinical practice with our innovative products and extensive
experience in automation and digitalization, and bring added value to
health care providers as well as patients," said Bernd Montag, Ph.D.,
Chief Executive Officer of Siemens Healthineers. "This cooperation is a
blueprint for the future trend in value-based care: taking a holistic
view of the care pathway from prevention to diagnosis, therapy, and

"This strategic partnership provides each of our organizations with the
ability to move to a continuum that changes what we are," Cole said.
"Make no mistake, this agreement is truly revolutionary and is unlike
anything I've seen before. Through this process, both organizations will
transform health care delivery in clinical practice, open new research
pathways, and greatly enhance the exposure and involvement of our
students in health care innovation."

About MUSC

Founded in 1824 in Charleston, The Medical University of South Carolina
is the oldest medical school in the South. Today, MUSC continues the
tradition of excellence in education, research, and patient care. MUSC
educates and trains more than 3,000 students and 700 residents in six
colleges (Dental Medicine, Graduate Studies, Health Professions,
Medicine, Nursing, and Pharmacy), and has nearly 14,000 employees,
including approximately 1,500 faculty members. As the largest
non-federal employer in Charleston, the university and its affiliates
have collective annual budgets in excess of $2.6 billion, with an annual
economic impact of more than $3.8 billion and annual research funding in
excess of $250 million. MUSC operates a 700-bed medical center, which
includes a nationally recognized children's hospital, the Ashley River
Tower (cardiovascular, digestive disease, and surgical oncology),
Hollings Cancer Center (a National Cancer Institute-designated center),
Level I trauma center, Institute of Psychiatry, and the state's only
transplant center. In 2018, for the fourth consecutive year, U.S. News &
World Report named MUSC Health the number one hospital in South
Carolina. For more information on academic programs or clinical
services, visit
For more information on hospital patient services, visit

About Siemens Healthineers

Siemens Healthineers enables healthcare providers worldwide to increase
value by empowering them on their journey towards expanding precision
medicine, transforming care delivery, improving patient experience and
digitalizing healthcare. A leader in medical technology, Siemens
Healthineers is constantly innovating its portfolio of products and
services in its core areas of diagnostic and therapeutic imaging and in
laboratory diagnostics and molecular medicine. Siemens Healthineers is
also actively developing its digital health services and enterprise

In fiscal 2017, which ended on September 30, 2017, Siemens Healthineers
generated revenue of €13.7 billion and adjusted profit of €2.5 billion
and has about 48,000 employees worldwide. Further information is
available at

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