MANILA, Philippines - In a bid to strengthen its presence in the hospital business, Metro Pacific Investments Corp. (MPIC) has increased its stake in Medical Doctors Inc. (MDI), owner and operator of the Makati Medical Center (MMC) from 32.39 percent to 34.95 percent.
This was after MDI accepted MPIC’s subscription to a total of 139,983 shares of the capital stock of MDI, for a total subscription price of P160.98 million.
MDI earlier offered to its shareholders a total of 181,226 new shares at a price of P1,150 per share or the total issue price of P208.4 million. The remainder of the shares not subscribed to by MPIC was availed of by other minority shareholders of MDI.
MPIC earlier said it wanted to acquire all the shares corresponding to its stock rights entitlement of 58,924 shares and offered to subscribe to any shares that will not be taken up by the other shareholders of MDI. Had MPIC been able to acquire all the additional new shares issued by MDI, this would have raised MPIC’s stake in MDI to 36.35 percent.
MMC is a 420-bed tertiary hospital in Makati City. According to company officials, the hospital is now on its third year of sustained profitability, resulting in increased investible funds to be plowed back to the hospital to enhance its medical capability, and improve credit ratings translating to a clean bill of health.
MMC now boasts of a new building that houses diagnostic services and centers of excellence, all part of an ambitious masterplan to provide total patient care in the most conducive environment. According to hospital management, the new building is only the first step in MMC’s vision of a complete hospital in every sense, one that has factored in current and emerging trends in medical treatment, medical technology and delivery.
They added that 2009 will be focused primarily on completing the hospital transformation masterplan.
Around P2 billion in capital expenditures have been invested in a facilities and improvements program (FIP),the first phase of which was the construction and equipping of the new annex building which was opened for soft launch in December 2008. More capital expenditures are programmed to fully integrate and upgrade the facilities, equipment, and amenities to the existing structures, officials said.
MPIC reported a core net income of P716 million in the first six months of 2009, as against the restated core profit of P15 million in the same period a year ago.
Reported net income, which included net non-recurring gains, increased to P1.7 billion, against a restated bottom line of P339 million last year.
The hospital group’s net income for the period totaled P243 million contributing P76 million to MPIC.
“Optimal overall performance, internal controls and system efficiencies have sustained the growth of Maynilad, Metro Pacific Tollways and the hospital group for the first half of 2009. This demonstrates that even in a challenging economic environment, the group’s strong operating income stream, proactive management and prudent measures will continue to exceed expectations and contribute higher margins to MPIC,” according to MPIC president and CEO Jose Ma. Lim.
MPIC also owns Colinas Verdes Managers Corp. (CVHMC), the operator of the Cardinal Santos Medical Center . The Roman Catholic Archbishop of Manila awarded the 20-year contract to operate the Cardinal Santos hospital to CVHMC last March 1.
Under such contract, CVHMC is obligated to pay rent for the lease of the land, building and existing equipment of CSMC and is committed to invest a minimum of P750 million in the first 10 years, of which P250 million will be spent within the first three years to repair assets and expand hospital services.
Also, in May 2008, MPIC acquired a 34 percent shareholding in Davao Doctors Hospital , a privately-owned, 250-bed tertiary level and multi-specialty hospital located in Davao City .
For Davao Doctors alone, the company will P200 million this year on top of the P100 million spent last year for the renovation and improvement of the Davao-based hospital.
It was earlier reported that MPIC is still looking for hospital facilities in Cebu for possible acquisition or joint-venture agreement.
MPIC chairman Manuel Pangilinan said its interest with the Cebu City Medical Center (CCMC) is still up, but the company is also looking at other hospital facilities in the province that the company might be interested to invest in.
Currently, MPIC is looking at two potential hospital facilities in the Visayas and Mindanao that Pangilinan described as “worthy” facilities.