News | Imaging | December 28, 2015 | Dave Fornell

Toshiba May Sell its Healthcare Division as Part of its Financial Reforms

Scandal following its announcement of intentionally posting false financial reports results in job cuts and putting its healthcare division up for sale

December 28, 2015 — Toshiba announced Dec. 21 it is considering selling off its healthcare division as part of its restructuring plans in the aftermath of its falsified financial reporting scandal from earlier this year. 

In February 2015, Toshiba revealed it had manipulated its financial figures for the past seven years to improve the image of its bottom line following the global economic downturn starting in 2008. In September Toshiba submitted amended financial reports from 2015 back to April 2009 to correct the misinformation on the previous reports. 

The Japanese Securities and Exchange Surveillance Commission imposed a penalty of 7.3 billion Yen (more than $60 million in U.S. dollars) due to the false financial statements. Toshiba also created an independent auditing group to investigate the financials, leading to the resignation of five members of the company’s Board of Directors.

The revelation of the false reporting statements has shown Toshiba to be in the red with some of its businesses. Its recent financial reports showed stagnation in its home appliance business, part of its lifestyles product and services divisions that include TVs and personal computers.  The division posted big revenue declines in 2015. 

During the Dec. 21 press conference, the company explained how it would revitalize itself in 2016. Beyond implementing financial reforms in its reporting, this includes cutting 10,600 jobs, mostly from its lifestyles and semiconductor divisions and from its corporate staff.  The company also prioritized selling shares of its healthcare segment to outside investors. The company said while the business has been profitable, it needs additional research and development, and management resources to continue its expansion.  The company said much of the R&D in this segment has been in creating next generation computed tomography (CT) systems

It is refocusing efforts in the energy and information storage divisions and is inviting outside majority shareholders in the healthcare business to secure management resources necessary for further growth. 

In its December financial report, Toshiba said its healthcare segment net sales grew to a total of $3.4 billion. The division's products include imaging systems for CT, MRI, PET-CT, angiography, digital X-ray, ultrasound and advanced visualization software.

Related Content

Source-Ray Inc. Announces FDA Clearance for UC-5000 Portable Digital X-ray
Technology | Digital Radiography (DR) | April 28, 2017
Source-Ray Inc. announced U.S. Food and Drug Administration (FDA) 510(k) approval for its new X-ray unit, the model UC-...
Sponsored Content | Videos | Nuclear Imaging | April 28, 2017
David Wolinsky, M.D., director of nuclear cardiology at Cleveland Clinic Florida and past-president of the American S
New Hampshire Hospital Expands Vascular Care with Toshiba Medical's Infinix-i Sky +
News | Angiography | April 27, 2017
Wentworth-Douglass Hospital in Dover, N.H., installed Toshiba Medical’s Infinix-i Sky + angiography system in its...
Vacancy Rates Rise for Radiographers in 2017 ASRT Survey
News | Business | April 27, 2017
The vacancy rate for radiographers increased to 4.2 percent in 2017, according to the latest American Society of...
Samsung GC70 Digital Radiography System Receives FDA 510(k) Clearance
Technology | Digital Radiography (DR) | April 27, 2017
Samsung announces that the GC70 Digital Radiography (DR) system received U.S. Food and Drug Administration (FDA) 510(k...
News | PACS Accessories | April 26, 2017
RamSoft recently announced their plan to demonstrate four new products at the 2017 Radiology Business Management...
Radiology Leadership Institute Launches Online Program Teaching Essential Business Skills
News | Business | April 25, 2017
Registration is open for a new online program from the Radiology Leadership Institute (RLI), designed to help launch...
Applications Open for ASRT Foundation and Toshiba Medical Safety FiRsT Grant Program
News | Business | April 25, 2017
April 25, 2017 — The American Society of Radiologic Technologists (ASRT) Foundation and Toshiba Medical have teamed u
Clarius Demonstrates Point-of-Care Ultrasound for Disaster and Emergency Medicine
News | Ultrasound Imaging | April 25, 2017
Clarius Mobile Health will demonstrate its wireless, handheld ultrasound scanners at the World Association for Disaster...
Colorado Hospital Upgrades X-ray Systems to Enhance Care for Residents, Tourists
News | Digital Radiography (DR) | April 20, 2017
Estes Park Medical Center (Estes Park, Colo.) recently upgraded its diagnostic imaging department with high-resolution...
Overlay Init