PALO ALTO, Calif., June 13, 2014 /PRNewswire/ -- Varian Medical Systems (NYSE: VAR) today announced it has entered into an agreement with Prime Healthcare Services, one of the largest healthcare systems in the United States, to be Prime Healthcare's exclusive supplier of technology for image-guided radiotherapy and radiosurgery. The agreement is part of a long-term plan for enhancing and extending radiotherapy and radiosurgery cancer treatment capabilities across the Prime Healthcare system.
Under the agreement, Prime Healthcare acquired four TrueBeam™ cancer treatment systems for deployment at sites across its system. Prime Healthcare is also planning a system-wide installation of Varian's Eclipse™ treatment planning and ARIA® information management software across a network that will be centrally managed using Varian's FullScale™ cloud-based oncology IT data hosting solution.
The total value of the agreement is estimated at approximately $20 million over a seven-year period. Varian booked $11 million of this amount during the second quarter of fiscal year 2014. The remainder of the order will be booked in accordance with the company's policies over the term of the agreement.
"We're very excited about the prospect of working with an innovative, visionary hospital management firm like Prime Healthcare," said Dow Wilson, Varian CEO. "We're on the same page in terms of our commitment to creating integrated healthcare delivery systems that use technology for the optimal benefit of patients."
"Prime Healthcare's success has been guided by using proven clinical protocols and cutting-edge technology," said Prem Reddy, M.D., FACC, FCCP, Chairman, President and CEO at Prime Healthcare. "Varian's systems represent the gold standard in terms of what they allow clinicians to do for patients, and also because of their speed and versatility. By investing in this type of system, we are confident that we can achieve cost savings and, more importantly, we hope to improve patient outcomes."
"Many of the radiotherapy departments now under Prime Healthcare management are modernizing their systems with TrueBeam accelerators and software for the cost-efficient delivery of state-of-the-art radiotherapy and radiosurgery, so this is a win for Prime and its patients," said Chris Toth, vice president of global marketing for Varian's Oncology Systems business.
Varian's TrueBeam System
TrueBeam was designed to treat tumors with great speed and accuracy, including tumors that move during treatment as the patient breathes. It features a multitude of technical innovations that synchronize imaging, patient positioning, motion management, and treatment delivery and can deliver dose up to four times faster than was possible with earlier generations of technology.
TrueBeam can quickly and precisely deliver a broad range of radiotherapy treatments, from stereotactic radiosurgery and stereotactic body radiotherapy to image-guided intensity modulated radiotherapy (IMRT) and RapidArc® radiotherapy. In RapidArc mode, the treatment beam is dynamically modified to match the shape of the tumor from every angle as the treatment machine completes one or more rotations around the patient. RapidArc treatments can take as little as 90 seconds to complete once a patient has been carefully positioned, optimizing both quality and speed of care.
About Varian Medical Systems Varian Medical Systems, Inc., of Palo Alto, California, is the world's leading manufacturer of medical devices and software for treating cancer and other medical conditions with radiotherapy, radiosurgery, and brachytherapy. The company supplies informatics software for managing comprehensive cancer clinics, radiotherapy centers and medical oncology practices. Varian is a premier supplier of tubes and digital detectors for X-ray imaging in medical, scientific, and industrial applications and also supplies X-ray imaging products for cargo screening and industrial inspection. Varian Medical Systems employs approximately 6,600 people who are located at manufacturing sites in North America, Europe, and China and 70 sales and support offices around the world. For more information, visit http://www.varian.com or follow us on Twitter.
About Prime Healthcare Services Ontario, CA-based Prime Healthcare Services (www.primehealthcare.com), with a motto of "Saving Hospitals, Saving Jobs and Saving Lives," is one of the largest hospital companies in the nation.
Prime Healthcare was recognized as one of the "Top 15 Health Systems" in the nation in 2013, based on quality of healthcare and patient satisfaction, the third time in six years it has earned the honor. In 2014, eight Prime Healthcare hospitals were ranked among the "100 Top Hospitals" in the nation by Truven Health Analytics (formerly Thomson Reuters). Prime Healthcare hospitals have earned the award 27 times since 2003. In addition, 11 Prime Healthcare hospitals earned national recognition as "Top Performer on Key Quality Measures" in 2013 from The Joint Commission, the leading Medicare accreditation organization in the country.
Through their subsidiaries, Prime Healthcare Services and the non-profit Prime Healthcare Foundation have more than 30,000 employees and own and operate 26 hospitals: Alvarado Hospital Medical Center, Centinela Hospital Medical Center, Chino Valley Medical Center, Desert Valley Hospital, Encino Hospital Medical Center, Garden Grove Hospital Medical Center, Glendora Community Hospital, Huntington Beach Hospital, La Palma Intercommunity Hospital, Montclair Hospital Medical Center, Paradise Valley Hospital, San Dimas Community Hospital, Shasta Regional Medical Center, Sherman Oaks Hospital and West Anaheim Medical Center – in California; Providence Medical Center and Saint John Hospital – in Kansas; Saint Mary's Regional Medical Center – in Nevada; Lower Bucks Hospital and Roxborough Memorial Hospital – in Pennsylvania; Landmark Medical Center and Rehabilitation Hospital of Rhode Island – in Rhode Island; Dallas Medical Center, Harlingen Medical Center, Knapp Medical Center and Pampa Regional Medical Center – in Texas.
Forward-Looking Statements Except for historical information, this news release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Statements concerning industry outlook, including growth drivers; the company's future orders, revenues or other financial performance; the ability of the company's technology and products to treat cancer; and any statements using the terms "will," "plan," "expect," "estimated," "long-term" or similar statements are forward-looking statements that involve risks and uncertainties that could cause the company's actual results to differ materially from those anticipated. Such risks and uncertainties include the effect of global economic conditions; demand for the company's products; the company's ability to develop, commercialize, and deploy new products; the company's ability to meet legal and regulatory requirements; changes in the legal or regulatory environment; and the other risks listed from time to time in the company's filings with the Securities and Exchange Commission, which by this reference are incorporated herein. The company assumes no obligation to update or revise the forward-looking statements in this release because of new information, future events, or otherwise.
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SOURCE Varian Medical Systems