MPIC taking over Cardinal Santos hospital in P300-million deal

MANILA, Philippines - Infrastructure holding company Metro Pacific Investments Corp. (MPIC) is taking over Colinas Verdes Hospital Managers Corp. (CVHMC), the company that operates the 237-bed tertiary hospital Cardinal Santos Medical Center, in a deal valued at P300 million.

In a disclosure to the stock exchange yesterday, MPIC said it inked an agreement with affiliate Medical Doctors Inc. (MDI), which owns and operates Makati Medical Center, to acquire 100 percent of CVHMC.

CVHMC, a wholly-owned unit of MDI, was organized in 2008 to enter into a 20-year lease agreement with Philippine Realty Corp. to operate the Cardinal Santos Medical Center, located in Wilson St., San Juan.

Under the deal, MDI will assume all the guarantee obligations of MDI to PhilRealty. This, however, is still subject to the approval of PhilRealty.

“This transaction is beneficial to all parties involved. It will generate a substantial amount of cash for MDI to enable it to continue funding its major upgrade programs – facilities renovation, purchase of state-of-the-art medical equipment, environmentally-friendly energy savings initiatives – to modernize and further improve Makati Medical Center,” said Angie Palisoc Jr., president and CEO of MPIC Hospital Group.

Palisoc said the move will also free MDI from the need to possibly fund Cardinal Santos Medical Center’s own expansion program.

“As such, MPIC will be able to fully consolidate the financials of CVHMC. With this restructuring, we will be able to directly support both hospitals and pursue their respective improvement/expansion programs for the benefit of their patients, doctors, and other stakeholders,” Palisoc noted.

The MPIC Hospital Group is now the largest private hospital operator in the country, consisting of five premier hospitals with a total of 1,600 beds.

Aside from Makati Med and Cardinal Santos, the other hospitals in the group’s portfolio include Our Lady of Lourdes Hospital in Sta. Mesa, Manila; Riverside Medical Center in Bacolod; and Davao Doctors Hospital in Mindanao.

MPIC has budgeted P3.8 billion to fund its hospital operations over the next five years. It may set aside another P3.5 billion for acquisitions as it aims to have a network of 10 hospitals.