The US$100 million (euro 79 million) Benigno Aquino Memorial Hospital will cater mainly to Japanese who want top-quality but low-cost health care, Trade Secretary Cesar Purisima said.
Purisima signed the agreement last week with Torao Tokuda, president of Japan’s Tokushukai Medical Corp., the trade department said.
Tokushukai has over 16,300 staff in 51 hospitals, 61 clinics and 48 other medical facilities in Japan.
Purisima said earlier that the Philippines has the potential to develop its health sector into a US$1 billion (euro 792 million) a year industry.
Countries such as Thailand, Malaysia and Singapore have already taken the lead in inviting foreign investment in medical services. Last year, the three countries attracted more than 600,000 patients and earned US$500 million (euro 396 million) in revenues.
Purisima said the hospital may be built in a so-called "medical zone," where foreign investors can obtain the same incentives and privileges as those working in special economic zones.
Reports earlier quoted Purisima as saying a special law may be passed to allow Japanese to practice in "medical zones." Under a 1959 law, only Filipinos can practice medicine in the country.