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Siemens Study Examines International Healthcare Funding Challenges


Siemens Financial Services Presents Options for Financial Efficiencies in U.S. and European Healthcare Systems

Iselin, N.J., Jul 5, 2006, As the need grows for more efficient use of capital in U.S. and European healthcare systems, leasing, equipment financing and alternative financing solutions can help alleviate key challenges facing the different countries, according to a global research paper released today by Siemens Financial Services, Inc. (SFS) and coordinated by Siemens Financial Services Gmbh in Munich.

“It is common knowledge that healthcare consumption is on the rise throughout Europe and the U.S.,” SFS Managing Director, Dr. Herbert Lohneiß said. “Each of these Western economies has to grapple with the affordability of healthcare if we are to meet the economic and social challenges over the next decade and our research highlights financing as a viable option which can offer significant efficiencies to be gained.”

The study, which included a broad range of public sources, discusses global trends in healthcare systems and potential financing solutions with several experts from Siemens Financial Services and Siemens Medical Solutions. Countries included in the study are the U.S., Germany, UK, France, Italy, Spain, Sweden, Denmark, Norway and Finland.

Conclusions from the study include:

* With technology replacement cycles shortening, healthcare institutions cannot afford to have an increasingly large proportion of the annual budgets tied up in medical equipment and administrative IT.

* Capital in healthcare systems that could be freed up for revenue purposed through alternative financing amount to about €20bn in the U.S and €10bn total for the countries covered in the paper in Europe.

* Leasing and renting are becoming the alternative financing tools of choice for growing numbers of medical service providers as technology replacement periods continue to contract and providers seek to avoid the obsolescence trap.

A majority of the paper is dedicated to showcasing how alternative financing solutions (i.e., leasing, equipment financing and working capital solutions) can be better utilized in the countries being studied, as well as the lessons that can be learned from comparing and contrasting the differing systems. However, in order to leverage the best practices between countries, there is a vital need for internationally agreed upon metrics to assist in understanding, comparing and controlling the exploding demand for healthcare.

Despite differing financing structures and public-private balance, the countries reviewed all share the challenge of increasing financial pressure. One suggested solution from the study urges medical service providers to increase the use of financing techniques to make essential capital investments in IT and technology.

Roland Chalons-Browne, President and CEO of Siemens Financial Services in the U.S., is available to discuss the paper in greater detail. To receive a copy of the paper or arrange an interview, please contact Jillian Guadagno at 732-476-3492 or

About Siemens Financial Services

With some 1,700 employees and an international network of financial companies coordinated by Siemens Financial Services GmbH, Munich, the Siemens Financial Services Group offers a broad range of financial services. This covers activities from sales and investment financing to treasury services, fund management and insurance brokerage. The group’s key customers are internationally active industrial and services companies, as well as public-sector operators. The group supervises 22 leasing companies worldwide. Further information:

Siemens Financial Services, Inc. (SFS) is a leading provider of business-to-business financial services and is one of Siemens’ operating companies in the United States. SFS helps businesses increase productivity, improve cash flow and acquire the latest technology by providing customized solutions that range from equipment financing to working capital solutions. With U.S. headquarters in Iselin, N.J., SFS employs more than 200 industry experts who specialize in tailoring solutions for thousands of premier businesses. For further information visit

About Siemens

Siemens AG (NYSE:SI) is one of the largest global electronics and engineering companies with reported worldwide sales of $96 billion in fiscal 2005. Founded nearly 160 years ago, the company is a leader in the areas of Medical, Power, Automation and Control, Transportation, Information and Communications, Lighting, Building Technologies, Water Technologies and Services and Home Appliances. With its U.S. corporate headquarters in New York City, Siemens in the USA has sales of $18.8 billion and employs approximately 70,000 people throughout all 50 states and Puerto Rico. Eleven of Siemens’ worldwide businesses are based in the United States. With its global headquarters in Munich, Siemens AG and its subsidiaries employ 460,000 people in 190 countries. For more information on Siemens in the United States:


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