Healthcare-As-A-Service: Meet Daniel Cho, Head of Strategic Pricing at Philips Healthcare
Yann Toutant, CEO of Black Winch, and Daniel Cho, Head of Strategic Pricing at Philips Healthcare, discuss the concept of "Healthcare as a Service" and "Patient Monitoring as a Service".
Healthcare-As-A-Service: Meet Daniel Cho, Head of Strategic Pricing at Philips Healthcare
Yann Toutant, CEO of Black Winch, and Daniel Cho, Head of Strategic Pricing at Philips Healthcare, discuss the concept of "Healthcare as a Service" and "Patient Monitoring as a Service".
Guest speaker
- Started as a sales person for HK Market, later became regional Sales Development manager for North East Asia, later promoted to become Sales Development manager for Patient Monitoring, and Diagnostic ECG products for the entire Asia Pacific.
- Responsibility spread through Value Based Pricing, Market Turnaround, Business profit improvement, competitive intelligence and develop and maintain a business analytics platform.
- Promoted to WW Director of Market Intelligence for Patient Monitoring group in 2007.
- WW Director of Market Intelligence and New Product Introduction for both Healthcare Informatics and Patient Monitoring in 2008.
- WW Director of Market Intelligence and New Product Introduction for Patient Care & Clinical Informatics (a combination of 8 Business Units and 34 businesses) in 2010.
- Started Global Pricing team in 2012 with team of 3. In 2018 had grown to a team of 11 to host the Diagnostic imaging business.
- Created with the International Sales and Marketing team a Competitive Intelligence and knowledge sharing platform across PCCI.
About Philips Healthcare
Over the past decade, Philips has emerged as a leading force in health technology, driven by a mission to enhance global health and well-being through meaningful innovation.
With an ambitious goal to improve 2.5 billion lives annually by 2030, including 400 million in underserved communities, Philips is redefining healthcare as a connected journey.
From promoting healthy living and disease prevention to empowering clinicians with precision diagnostic tools and personalized treatment solutions, Philips ensures patient recovery is supported at home and within the community, all through seamless data integration.
Guided by the belief that there’s always a way to make life better, Philips and its brand partners continue to innovate for people worldwide.
Healthcare-As-A-Service
Philips’ Healthtech Leases program allows healthcare facilities to lease healthcare equipment.
Instead of just selling medical devices, Philips offers comprehensive solutions that help hospitals optimize patient care, improve monitoring, and ensure consistent and high-quality care.
Customers can use Philips medical equipment and solutions for the duration of their economic life - without owning them.
Payment structures vary from fixed monthly fees, stepped payment loans and pay-per-use agreements.
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Key insights
"We don't just sell the oven; we help hospitals create the perfect cake. This means providing the right recipe, ingredients, and guidance to ensure consistent, high-quality results every time, no matter where they are. Our focus is no longer just on the device but on co-creating and standardizing the process to deliver exceptional care."
"Imagine you have to buy a few thousand patient monitors at the same time, paying in full and each one is like the price of a car. It's very difficult for any organization to have that upfront investment so we change it into more a consumption based model."
"Our As-A-Service model charges a premium based on the number of patients, aligning costs with patient census. Customers appreciate this approach because it ties directly to their income, eliminating the need for external funding. In return, they expect a comprehensive offering—not just devices, but also training, technology upgrades, performance management, and more—ensuring everything they need is included in the per-patient fee."
"To set prices, we first need to understand perceived value, as customers pay based on the value they see. In B2B healthcare, where we sell to hospitals running their own businesses, this means identifying and quantifying where we drive value. At Philips Healthcare, we focus on five key value drivers that both we and our customers prioritize and clearly understand."
"In healthcare, AI is increasingly accepted as a valuable partner for making better, faster decisions and automating tedious tasks. The future lies in technology that eliminates non-value-adding administrative work, freeing up energy for patient care. Ideally, a single provider will offer integrated services, simplifying operations and enhancing efficiency."
References
Philips Healthcare: https://www.philips.com/global
Healthcare-As-A-Service: https://www.philips.com/a-w/about/news/archive/features/2021/20210825-how-the-healthcare-as-a-service-concept-works-as-a-business-and-care-model.html
Hintland Podcast "Meet Mr. Daniel Cho, Director at Philips Patient Care & Clinical Informatics": https://hintland.com/meet-mr-daniel-cho-director-at-philips-patient-care-clinical-informatics/
The SweetSpot Podcast "Value Pricing and Value Selling at Philips Healthcare with Daniel Cho": https://podcasts.apple.com/za/podcast/5-value-pricing-and-value-selling-at-philips/id1672918599?i=1000639191478
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