Philips offers customers financing through Citicorp - Philips Medical Systems North America, Citicorp North America Inc

Health Industry Today, June, 1991

Philips Medical Systems North America, Shelton, Conn., recently launched a national customer finance program in conjunction with Citicorp North America Inc., the nation's largest bank holding company. No other medical equipment manufacturer offers such a program, according to the company.

"Escalating healthcare costs have hurt hospitals' balance sheets and made it harder for hospitals to float bonds or acquire capital," said Wynn Blieberg, director of financial services, Philips Medical. "Therefore, we anticipate a significant incremental sales growth from being able to offer customers this full line of financial options."

The point-of-sale finance program will probably have the most impact on the sales of high-cost items, such as magnetic resonance equipment. But the program is structured to finance all types of equipment purchases on a one-stop-shopping basis, he added.

The program will be jointly marketed and promoted through brochures, telemarketing and print ads. It was introduced to Philips Medical's sales force in May.

This marketing approach will enable the company to differentiate itself from its competitors, Blieberg said. Two competing manufacturers have captive or in-house financing arms and one works with an independent leasing company. Neither, however, have a joint venture with a major financial institution oriented toward the needs of medical companies, he said.

Formerly, Philips Credit, a sister company, provided financing for Philips Medical's customers. Philips Credit still exists but will discontinue financing purchases of Philips Medical equipment.

Citicorp's Distribution Finance division, Harrison, N.Y., will administer the program.