Philips streamlines healthcare management structure

Philips has announced that it will be introducing a new management structure for its healthcare division to improve performance and better respond to changing market demands.

Under the new model, healthcare business groups will report directly to Philips' chief executive officer Frans van Houten rather than healthcare chief executive Deborah DiSanzo, meaning an unnecessary management layer has been removed.

As a result, Ms DiSanzo has chosen to leave Philips to pursue other opportunities, with the company offering its thanks for her contributions to the organisation over the years.

The move is expected to help bolster growth prospects within its healthcare division, which represents more than 40 percent of its overall revenue generation capabilities.

Mr van Houten said: "Today's announcement is an example of how we are taking decisive action to improve our performance and competitiveness, and demonstrates our relentless commitment to quality and meaningful innovation that meet the needs of our customers."

Last month, the company announced that it will be allying with Salesforce.com to deliver cloud-based healthcare information technology via a new platform, a move that will help to bolster its future growth prospects.