Five foreign firms to invest in RP healthcare sector, says DTI official

There are at least five potential investors in the healthcare/wellness sector following the recent completion of the investment guidelines under the 2005 Investment Priorities Plan (IPP).

This was revealed yesterday by Trade Undersecretary Elmer Hernandez who acts as officer-in-charge of the Department of Trade and Industry while Trade Secretary Peter B. Favila is out of the country.

According to Hernandez, no less than five firms have indicated their intention to invest in the healthcare/wellness sector.

Hernandez said the minimum investment required for the healthcare/wellness sector is P700 million.

At least one Japanese firm had expressed its intention to invest $100 million on a medical facility that would cater primarily to foreign nationals.

Japanese hospital chain Tokushukai Medical Corp. (TMC) is now scouting for a good location for its planned $100-million medical facility which was originally planned to rise at the Public Estates Authority (PEA) reclamation area in Roxas Boulevard.

Tokushukai passed up on the PEA property because it would increase the cost of the planned medical facility and possibly delay its completion. TMC is now eyeing alternative locations in either Clark, Subic or Alabang.

Under the just released 2005 IPP guidelines, investors in the healthcare/wellness sector must be endorsed by the Department of Health before they can register with the government, specifically the Board of Investments, to qualify for incentives.

The potential investors must likewise be accredited by the Department of Tourism if they intend to engage in "medical tourism."

Investors who may qualify for pioneer status are those that plan to engage in the following:

1.Tertiary or secondary care hospitals with a minimum capacity of 100 beds and an investment cost of at least $10 million.

2.Specialized services or Centers of Excellence with the following project cost – cancer center, $6 million and heart/lung/kidney center, $10 million.

Prior to availment of income tax holidays, the projects must be accredited by the DoH.

Also classified in the healthcare and wellness sector are investments in ambulatory surgical services, dental services, other human health and wellness services including rehabilitation and recuperation services, retirement village and other related services, development of medical zones and healthcare and wellness products.