By Zinnia B. Dela Peña Updated February 16, 2009 12:00 AM [ philstar.com ]
MANILA, Philippines - Metro Pacific Investments Corp. (MPIC) and the Roman Catholic Archbishop of Manila, are finalizing an agreement that will allow MPIC to operate the Cardinal Santos Medical Center for 20 years with an investment commitment of P750 million in the first 10 years.
In August 2008, Medical Doctors Inc. (MDI), 33.45 percent owned by MPIC, secured an interim contract to manage and operate the Catholic church-owned Cardinal Santos for a period of six months.
MPIC chairman Manuel V. Pangilinan said the company is hoping to complete all legal documents soon to allow it to become the long-term operator of Cardinal Santos, a 212-bed hospital located on a three-hectare property in San Juan City.
Pangilinan said MDI is now preparing a business plan to be submitted to the RCAM which will involve a cash infusion of at least P750 million in the first 10 years of the contract.
Out of the P750 million, P300 million is expected to shelled out in the first two years to purchase and upgrade medical equipment, enhance the hospital’s range of services, and construct parking facility to accommodate people, Pangilinan said.
MPIC has been on acquisition mode since 2005 when it purchased a 33.5 percent stake in Makati Medical Center, making it the single largest shareholder. It also bought 34 percent of Davao Doctors Hospital, one of the largest hospitals in Mindanao.
MDI has allotted at least P961 million for the continued facilities improvement program of Makati Med which include the establishment of an eight-storey building to add 445 beds, and a five-level basement parking as well as the renovation of the existing 39-year old nine-level hospital building.
Davao Doctors Hospital is likewise embarking on an expansion program estimated to cost P250 million. The expansion, which aims to align Davao Doctors along the ranks of the best hospitals in Manila, will involve the acquisition of new equipment and possibly the construction a new building and a parking lot.
MPIC has been aggressively building up its healthcare service portfolio in line with its vision to establish the first nationwide chain of premiere hospitals in the Philippines.
The group continues to be on the lookout for new acquisitions as it aims to have up to 5,000 beds in the next three or five years which could contribute P15 billion in additional revenues.
Aside from healthcare, MPIC, the local flagship of the Hong Kong-based conglomerate First Pacific Co., also has investments in infrastructure, water distribution, real estate and possibly mining and ports.