JOHN J. GREISCH,
PRESIDENT AND CEO
2015 was a remarkable year for Hill-Rom – one of the most successful in our 86-year history. We reshaped our business, significantly expanded our portfolio and meaningfully increased the value we bring to our customers. We posted record financial results, driven by the strength of our recently acquired businesses and continued growth in our legacy businesses. The centerpiece of the year was our acquisition of Welch Allyn, which brings together two medical technology leaders and will now allow us to offer customers solutions that cross the entire continuum of care.
In a year of full of accomplishments, I am proudest that our company remains singularly focused on our mission even as we grow. It’s a commitment that directs, motivates and challenges each of us at Hill-Rom. It is our compass when making decisions and the measurement that most accurately reflects our success:
Every day, around the world, we enhance outcomes
for patients and their caregivers.
We are gratified to know that our successes in 2015 further advanced our mission and set a course toward even greater impact in the years ahead.
(17.3%) adjusted earnings per share increase
(13.4%) North America segment revenue increase,
IN 2015, HILL-ROM ACQUIRED WELCH ALLYN, BRINGING TOGETHER TWO OF THE WORLD'S LEADING HEALTH CARE TECHNOLOGY COMPANIES DEDICATED TO SERVING PATIENTS AND CAREGIVERS AROUND THE WORLD.
For a century, Welch Allyn has supported patients and caregivers with a diversified portfolio of devices that assess, diagnose and manage a wide variety of illnesses and diseases. Welch Allyn is the only company focused on meeting the needs at the ”front line of care” – doctor’s offices, hospital emergency rooms, clinics and skilled nursing facilities – where 95 percent of all patients seek treatment. From stethoscopes and thermometers to blood pressure cuffs and extending far beyond, almost every patient interaction across the continuum of care involves a Welch Allyn diagnostic device.
Combining Hill-Rom's leading position in hospitals and operating rooms worldwide with Welch Allyn's leading position in point-of-care diagnostics and testing expands both companies' ability to help health care providers deliver patient care solutions that improve clinical and economic outcomes. Together, Hill-Rom and Welch Allyn offer a wider range of innovative solutions to a global customer base.
Welch Allyn has a portfolio of diagnostic devices that capture both vital signs and cardiopulmonary information and transmit the data to
many leading electronic medical record systems directly or through Welch Allyn software. Physicians and hospitals rely on patient-friendly devices that produce accurate clinical information for use with electronic databases. As Hill-Rom continues to move into patient sensing at the bedside and in the operating room, this deep expertise and Welch Allyn’s complementary products will yield advanced, integrated smart solutions throughout the hospital and beyond. The combined company will provide customers with solutions that deliver patient-centric care across settings, using tools with strong interoperability, proven clinical relevance and established cost-effectiveness.
In recent years, Hill-Rom has aggressively pursued external growth opportunities to build a stronger, more diversified organization with the scale, resources and geographic reach needed to support health systems around the globe. The addition of Welch Allyn is a significant step in that transformation, strengthening both organizations’ ability to enhance outcomes and deliver for customers worldwide.
Employees in 26 Countries
Million in Revenue
FOR A SALES PERSON, THE HIGHEST MARK OF CONFIDENCE IS TELLING A CUSTOMER THAT YOU WOULD CHOOSE A PRODUCT FOR YOURSELF. FOR TWO MEMBERS OF THE RESPIRATORY CARE TEAM, THAT ENDORSEMENT ISN’T A HYPOTHETICAL – IT’S EXPERIENCE.
MetaNeb Account Executive,
Respiratory Care Account Executive,
Years of working with health care professionals had given Scott Hamlin deep insight into respiratory care, but an accident in 2013 added the empathy of a fellow patient to his training.
As a long-time instructor, Scott helps novices learn one of the most adrenaline-inducing sports there is: skydiving. Confident after 24 years of experience, one weekend the unthinkable happened. During a routine jump, a momentary distraction triggered a serious accident. Scott woke up in the hospital having broken his shoulder, collar bone, wrist and every rib on the left side of his body except one.
“It was really serious. With that level of trauma in your body, every breath hurts,” says Scott. Everyone on his care team knew he needed help to restore his lung capacity, but, he explains, “I was scared to try anything due to my injuries.” Scott’s Hill-Rom colleagues swung into action to get a MetaNeb® airway clearance system to the ICU treating him. The first treatment forever changed how he viewed the product he had sold so many times. “I was amazed. It didn’t hurt at all because it does the lung expansion for you. After the first 10-minute treatment, it was incredible to realize how much lung capacity I had lost and how much easier it was to breathe.”
Scott was treated with the MetaNeb system throughout his time in the hospital and credits the technology with helping aid a dramatic recovery. Just five months after the accident, Scott was back in the air. “I was nervous that first flight, but skydiving is my passion," he says. Scott also has a new passion – helping people understand the MetaNeb system. “You really can’t ask for a better treatment. I know from experience.”
As a respiratory therapist, Lisa Gorsky has spent her entire career dedicated to helping patients breathe easier, motivated by the early experiences of watching her grandfather suffer from emphysema. But she found the tables turned eight years ago when she herself started experiencing shortness of breath. Years of failed treatments followed until, finally, a diagnosis: a rare diaphragmatic hernia, which meant her abdominal organs had moved into her chest. Recovery would require a complicated surgery by an experienced surgeon.
In her job with Hill-Rom, Lisa works with a variety of hospitals in the Chicago area helping them learn to use the company’s respiratory products. One day she went to meet a new surgeon joining the thoracics department at a major academic medical center. After the meeting, small talk turned personal. The surgeon was an expert in exactly the type of repair Lisa needed. Given that other surgeons were telling Lisa they could “experiment” with the procedure, Lisa knew she’d found the right professional to trust with her health. Two weeks later she was being prepped for the operating room.
Within hours of surgery, Lisa received her first MetaNeb system treatment. “The MetaNeb system made a huge difference for me,” she says. “I didn’t develop any pulmonary complications from the surgery and I credit MetaNeb with that.”
“I have become a walking testimonial,” Lisa laughs, noting her X-rays have become a favorite discussion point for the physicians she meets. “I had two serious surgeries, never developed pneumonia and recovered more quickly than expected. It’s hard to beat that.”
“THE METANEB SYSTEM MADE A HUGE DIFFERENCE FOR ME ... I DIDN’T DEVELOP ANY PULMONARY COMPLICATIONS FROM THE SURGERY AND I CREDIT METANEB WITH THAT.”
PRIMARY CARE OFFICE
Welch Allyn, a long-trusted brand for front line care, continues to innovate to provide caregivers with solutions that leverage the latest technology to help improve patient care. Among its innovations in 2015 is the Welch Allyn® Spot™ Vision Screener, a tool that lets clinicians easily screen infants to seniors for a range of vision conditions – including astigmatism – all at a comfortable distance of three feet away. The company also introduced the new Connex® Spot Monitor, which collects a full set of patient vital signs and provides immediate access to that data in electronic medical records (EMR), streamlining clinical workflow. Innovations like these demonstrate the company’s dedication to delivering tools and technology aligned to 21st century health care.
Seventy-five percent of obese patients have at least one condition that complicates their health. Obese patients often require more frequent and more extensive health care. This year Hill-Rom introduced the next generation of its bariatric portfolio, centered on the new Compella™ Bariatric Bed and LikoGuard™ Lift system, designed to help hospitals meet the physical and emotional needs of patients. The Compella Bariatric Bed features powered transport, length and width expansion and on-board therapies to provide a comfortable, dignified and clinically advanced care environment. The LikoGuard overhead lift system supports the transfer and movement of patients, including bariatric patients, with a state-of the-art system that helps protect caregivers from injury. Together, they help hospitals streamline workflow and ensure caregivers can provide safe, high-quality care while protecting patient dignity.
Trumpf Medical ushered in a new era in operating room lighting with the introduction of the iLED® system. This year it set a new standard with the iLED® surgical light– a surgical lighting system that “thinks.” The iLED® surgical light uses 3D sensor technology to analyze the surgical area, automatically adapting lighting and eliminating the need for manual adjustment to ensure consistent lighting throughout a procedure. An innovative shadow management system eliminates unwanted shadows, such as those cast by the surgeon’s head. Trumpf Medical lighting is just one of Hill-Rom’s extensive offerings to surgeons, which includes Aspen Surgical’s gold-standard Bard-Parker® scalpels, surgical staff safety equipment and instrument care products, as well as Allen Medical’s industry-leading patient positioning systems. Together, they offer a state-of-the-art surgical suite dedicated to ensuring surgical staff can remain focused on achieving the best possible outcomes for their patients.
INTENSIVE CARE UNIT
Improving outcomes and reducing costs is essential throughout the hospital – particularly in the ICU. This year, researchers using mobility protocols and the features of an advanced ICU bed from Hill-Rom showed that movement had a major impact on recovery for patients who experienced strokes, brain tumors and other neurologic conditions. The mobility protocol included movement while patients were in bed and then progressively sitting, standing and walking. Analysis showed that both direct and indirect hospital costs were reduced by nearly a third for patients who were mobilized using Hill-Rom technology versus those who received standard care. Hill-Rom provides hospitals with solutions – from the Progressive Mobility® program, to patient lifting equipment, to advanced features on ICU beds like the Progressa® bed system – designed to leverage the power of early mobility to achieve better outcomes for their patients while reducing costs.
LONG TERM CARE AND RESPIRATORY CARE
Health care doesn’t end when a patient leaves the doctor’s office or is discharged from the hospital. Hill-Rom has a wide array of solutions for long-term and home care, ranging from beds and furniture, to specialized therapies that are useful in multiple environments. Within the hospital and long-term care settings, use of the award-winning MetaNeb® 4.0 System grew quickly this year, setting a new standard for effective lung clearance. The MetaNeb system provides three capabilities in one device – enhancing mucus clearance from the lungs, delivering lung expansion to support normal breathing and assisting with the treatment and prevention of complete or partial lung collapse. Whether used in the hospital for surgical patients, in a long-term care setting for patients managing conditions such as emphysema or chronic obstructive pulmonary disease (COPD), or in the home with cystic fibrosis patients, the MetaNeb system shows how innovative products can help patients across the continuum of care.
Protecting Patients by
An automated “smart hospital” is no longer conceptual. Today, wireless technology has become an essential member of the patient care team, helping smooth workflow, protect patient safety and provide access to information where and when it’s needed. Hill-Rom Clinical Workflow Solutions leverages wireless technology and data integration for a number of innovative solutions that protect patients by anticipating care.
This year the Hill-Rom® Hand Hygiene Compliance Solution demonstrated that hospitals using the system achieved an average 226 percent improvement in hand washing compliance, while some institutions’ compliance rates nearly tripled. The Hill-Rom Hand Hygiene Compliance Solution provides automatic, continuous monitoring and recording of every time a staff member uses a hand-hygiene station.
The newly introduced NaviCare® Patient Safety Application equipped hospitals with a powerful new tool for preventing patient falls. NaviCare allows patients who are at risk for falls to be protected by an automated protocol that sets safety settings on connected smart beds and alerts caregivers when necessary based on the status of the bed.
2015 saw Hill-Rom continue to introduce innovative solutions to support patients and caregivers.
Our teams are constantly looking for new ways to reduce, reuse and recycle. Reducing or eliminating waste and continuously improving our business activities is a core commitment. Through trade-in or buy-back many of our products can be refurbished and returned to the market rather than discarded to a landfill. Hill Rom routinely recycles thousands of pounds of plastic, copper, aluminum, steel, batteries, aerosol cans, wood, coolants, oils, cleaning solvents, fluorescent light bulbs, electronic components, cardboard and office paper. In addition, we are continuing our efforts to replace outdated equipment, install energy efficient lighting and improve energy management systems at our manufacturing. Through these and other efforts, we continued our efforts to responsibly manage our environmental footprint in 2015.
Through our signature program, Hill Rom’s Hospital Beds for Humanity®, our employees recondition and repurpose medical equipment for distribution to hospitals and other health care facilities around the globe where there is urgent need for Hill Rom’s products. In 2015 we donated more than 5,100 pieces of medical equipment, including hospital bed frames, surgical tools and other supplies, to organizations in countries such as Mongolia, Cameroon, Ghana, Sierra Leone, Guatemala and Ecuador.
In addition to our equipment donations, our company proudly supports the American Red Cross in its work to provide services to victims of disasters. At a local level, our employees volunteer thousands of hours each year to local organizations that are vital to their communities. We proudly support their commitment and in many instances help extend the impact of their efforts with matching company support.
Committed to Our Communities
Hill-Rom is dedicated to contributing to the well-being of the communities in which we live and work. We provide medical equipment and supplies to institutions in need in developing parts of the world, support a wide array of local organizations through volunteer and financial donations, and ensure our environmental footprint is responsible and actively managed.
TONS OF CARDBOARD RECYCLED
PIECES OF EQUIPMENT DONATED
Elected in 2002
Retired Executive Vice President
and Chief Financial Officer of Eli Lilly and Company
Elected in 2002
Retired President, ESG, Verizon Communications
Elected in 2004
Retired CEO of Gentiva Health Services, Inc.
Elected in 2007
Senior Vice President and Chief Financial Officer
of H.B. Fuller Company
Elected in 2009
President and CEO, Hill‑Rom
Elected in 2010
William H. (Hank) Kucheman
Retired CEO of Boston Scientific Corporation
Elected in 2013
William G. Dempsey
Retired Executive Vice President,
Global Pharmaceuticals, Abbott Laboratories
Elected in 2014
Stacy Enxing Seng
Former President, Vascular Therapies, Covidien
Elected in 2015
President and CEO
Chief Operating Officer
Senior Vice President and President, International
Senior Vice President and President, Surgical Solutions
Senior Vice President,
Corporate Development and Strategy
Senior Vice President, Global Supply Chain
Chief Technology Officer
Chief Information Officer
Senior Vice President and Chief Human Resources Officer
Senior Vice President, Quality Assurance and Regulatory Affairs
Senior Vice President, Corporate Secretary and Chief Legal Officer
Senior Vice President and President, Front Line Care
Chief Compliance Officer
Senior Vice President, Corporate Solutions
Senior Vice President, Finance and Chief Financial Officer
Hill‑Rom common stock is traded on the New York Stock Exchange (NYSE) under the ticker symbol “HRC.”
If you have questions about your stock certificates – such as lost certificates, registration of certificates, dividend payments or any other stock-related question – please contact our transfer agent:
Computershare Trust Company, N.A.
P.O. BOX 30170
College Station, TX 77842-3170
800-716-3607 (Within U.S., U.S. Territories and Canada)
312-360-5328 (Outside U.S., U.S. Territories and Canada)
Reinvestment of Dividends and Direct Stock Service
Hill‑Rom offers its shareholders opportunities to reinvest dividends and to transfer their certificates into electronic accounts. In order to obtain information for these features, please contact our transfer agent, Computershare Trust Company, N.A.
Hill‑Rom’s annual meeting of shareholders will be held on Tuesday, March 15, 2016, at 10:00 a.m. CST at:
The offices of Hill‑Rom Holdings, Inc.
180 North Stetson Avenue
Two Prudential Plaza
Chicago, IL 60601
Requests for the Hill‑Rom Annual Report, Form 10-K, Annual Proxy Statement or other information on the company should be directed in writing to:
Hill‑Rom Holdings, Inc.
1069 State Route 46 East
Batesville, IN 47006-8835
Or visit our website at:
Certain statements herein contain forward-looking statements, within the meaning of the Private Securities Litigation Reform Act of 1995, regarding the Company’s future plans, objectives, beliefs, expectations, representations and projections. It is important to note that forward-looking statements are not guarantees of future performance, and the Company’s actual results could differ materially from those set forth in any forward-looking statements. For a more in-depth discussion of factors that could cause actual results to differ from those contained in forward-looking statements, see the discussions under the heading “Risk Factors” in the Company’s previously filed most recent Annual Report on Form 10-K and subsequent Quarterly Reports on Form 10-Q. The Company assumes no obligation to update or revise any forward-looking statements.
2015 ANNUAL REVIEW
2015 ANNUAL REPORT
© 2016 Hill-Rom. ALL RIGHTS RESERVED.