Neil I. Patel

I just want to stick on this for one second. I hear what you're saying, but... You don't sell safe machines and then end up with one of the most intense FDA consent decrees in recent years that has overlapping audit periods and five-year design reviews. There's a lot there that suggests the FDA doesn't agree with you. And you've agreed to this, right? You've agreed to compliance and monitoring.

I just want to stick on this for one second. I hear what you're saying, but... You don't sell safe machines and then end up with one of the most intense FDA consent decrees in recent years that has overlapping audit periods and five-year design reviews. There's a lot there that suggests the FDA doesn't agree with you. And you've agreed to this, right? You've agreed to compliance and monitoring.

I just want to stick on this for one second. I hear what you're saying, but... You don't sell safe machines and then end up with one of the most intense FDA consent decrees in recent years that has overlapping audit periods and five-year design reviews. There's a lot there that suggests the FDA doesn't agree with you. And you've agreed to this, right? You've agreed to compliance and monitoring.

You've agreed to taking the profits from the machines you are selling and turning them over to the United States government for the period until you're in compliance. What is that disconnect? I think I'm missing something.

You've agreed to taking the profits from the machines you are selling and turning them over to the United States government for the period until you're in compliance. What is that disconnect? I think I'm missing something.

You've agreed to taking the profits from the machines you are selling and turning them over to the United States government for the period until you're in compliance. What is that disconnect? I think I'm missing something.

Have you changed your decision-making framework at all, having gone through this experience?

Have you changed your decision-making framework at all, having gone through this experience?

Have you changed your decision-making framework at all, having gone through this experience?

We have to take another short break. We'll be right back.

We have to take another short break. We'll be right back.

We have to take another short break. We'll be right back.

Welcome back. I'm talking with Roy Jacobs, CEO of Royal Phillips, about the direction he's trying to take the company following a massive recall and settlement related to breathing machines. Let me bring this all the way down to the ground. You are describing, and we've talked about, a restructure of the company into divisions so you can be closer to your customers.

Welcome back. I'm talking with Roy Jacobs, CEO of Royal Phillips, about the direction he's trying to take the company following a massive recall and settlement related to breathing machines. Let me bring this all the way down to the ground. You are describing, and we've talked about, a restructure of the company into divisions so you can be closer to your customers.

Welcome back. I'm talking with Roy Jacobs, CEO of Royal Phillips, about the direction he's trying to take the company following a massive recall and settlement related to breathing machines. Let me bring this all the way down to the ground. You are describing, and we've talked about, a restructure of the company into divisions so you can be closer to your customers.

You can better understand who you're selling to, what they need, what their processes are. In this case, very specifically, what you had was thousands of complaints over a decade from consumers saying there's sticky stuff in their breathing machines. And that wasn't acted on until quite some time later. Will your new structure make you more responsive to consumers who are filing complaints?

You can better understand who you're selling to, what they need, what their processes are. In this case, very specifically, what you had was thousands of complaints over a decade from consumers saying there's sticky stuff in their breathing machines. And that wasn't acted on until quite some time later. Will your new structure make you more responsive to consumers who are filing complaints?

You can better understand who you're selling to, what they need, what their processes are. In this case, very specifically, what you had was thousands of complaints over a decade from consumers saying there's sticky stuff in their breathing machines. And that wasn't acted on until quite some time later. Will your new structure make you more responsive to consumers who are filing complaints?

This is a hard and challenging problem with something as mechanical as a respirator or a sleep apnea machine where you can see the problem. You might even be able to hear the problem, right? We've talked a lot about what you're doing next, and a lot of it is software. It's connected services in the home. It's synthesizing a bunch of data to help make diagnoses faster. It's the use of AI.

This is a hard and challenging problem with something as mechanical as a respirator or a sleep apnea machine where you can see the problem. You might even be able to hear the problem, right? We've talked a lot about what you're doing next, and a lot of it is software. It's connected services in the home. It's synthesizing a bunch of data to help make diagnoses faster. It's the use of AI.