PH As Emerging Healthcare Force
Number Don't Lie
By ANDREW JAMES MASIGAN
February 20, 2012
Manila Bulletin
MANILA, Philippines — Exciting things are afoot in the medical industry. In the heart of Quezon City will evolve a medical belt like no other in Asia. An integrated chain of medical institutions, each specializing in a specific field of discipline. From general medicine to cardiology, from Nephrology, Pediatrics and Pulmonology.
The vision that started some 30 years ago will now come to fruition, thanks to the headstrong determination of DOH Secretary Enrique Ona and his chief coordinating officer, Dr. Nestor F. Venida. The initial phase of the plan is to integrate the Philippine Heart Center, National Kidney Institute, Lung Center of the Philippines, Philippine Children’s Hospital and the East Avenue Medical Center. These institutions put together make the Philippines a regional force to be reckoned with in as far as depth and extent of medical services are concerned. No other country in the region offers medical facilities of this scale in one connected belt.
Subsequently, the plan is to fold in the Philippine Hematology Center, the National Brain and Nerve Institute (the first medical institution to be built under the PPP scheme) and the National Orthopedic Hospital. The latter is to be relocated from its current site to Quezon City’s medical belt as well. All these will make the Philippines even more competitive on a global scale.
When completed, the medical belt is said to be branded “The Philippine Center for Specialized Healthcare.” The fact that the DOH even talks about branding alludes to its direction to “sell” it as a hub for medical tourism.
This is a welcome development given that the Philippines is in desperate need of alternative sources of foreign exchange. At present, the country is dangerously dependent on the electronics and BPO industry (as sources revenues) and this leaves us defenseless against the volatilities in these sectors. Having the medical industry develop into a new source of revenue will do us good. We are, after all, known worldwide as highly skilled healthcare workers with excellent bedside manners.
Getting Integrated
The above-mentioned medical institutions were built during the Marcos era and operate under separate sets of management and operating systems. As government institutions, their respective by-laws mandate them to allocate a substantial chunk of their business to charity cases. As a result, none of them are financially self-sufficient today. Each still relies on government subsidies to cover anywhere from 20 to 40 percent of their operating expenses. Each varies in the degree of financial health, with the Lung Center in the best position, thanks to the prudent fiscal management of its executive director, Dr. Jose Luis Danguilan. Still, none of them can afford to finance equipment upgrades or facilities modernization on their own.
Secretary Ona’s plan, originally based on Dr. Venida’s thesis, calls for the eradication of expense duplicities. Duplicities can come in the form of common use equipment like x-ray machines, lab equipment, ambulances, etc., as well as backroom functions such as accounting, human resources, engineering and security. All these translate to tremendous savings that can otherwise be channeled to new equipment, new technologies, and above all, research.
As far as management is concerned, the integration envisions a single Board of Trustees to govern the entire medical belt, as opposed to the current framework where each unit operates separately. Not only will this generate savings in management fees, it also fosters more coherence, better coordination and better administration of the country’s medical program.
Sources tell us that the integration plan enjoys the full support of Malacañang and that it is being pushed for full execution before President Aquino ends his term in 2016. But as expected, certain parties are in opposition. We were told that some members of top management from affected hospitals are in strong resistance, as are many rank and file employees. Dr. Ona and his team still face a tough road ahead in gaining widespread buy-in of the plan.
While the good Secretary does his best not to displace anyone, the reality is full integration will always have its casualties. Those redundant, irrelevant and less competent will have to give up their turf in the name of greater efficiency and progress. I can only hope that the personalities involved will take the high road and support whatever is best for the country. This, after all, is the true essence of public service.
The Benefits Of Integration
The biggest beneficiary of the integration plan is us, the Filipino people. At long last, we will be given access to the best possible medical care without having to leave our shores.
As far as the poorest of the poor are concerned, they too will have access to world-class medical care, more so after integration than with the present setup. Despite being mandated to service the marginalized sector, less than 20 percent of patients in the QC medical belt are actually charity cases. This is because government subsidies only cover a fraction of their operating expense and hospitals still need to generate their own revenues to keep afloat. The integration plan aims to put our medical institutions in the pink of health (by slashing overhead expenses), and with this comes the ability to absorb more charity cases.
Cheaper medical care is yet another benefit. Economies of scale in the purchase of consumables like medical supplies and drugs are seen to drive prices down. Savings from this will be passed on to the consumer via cheaper toll charges. In addition, a centralized medical database will greatly reduce HMO and Philhealth fraud, a problem that is quite rampant today.
Finally, the financial benefits that medical tourism can bring are enormous. When fully realized, the entire medical belt will have the capacity to treat practically all kinds of maladies, save for mental illness, reconstructive and cosmetic surgery. The spectrum of care is far and wide.
The Original Vision
Imelda had a vision 30 years ago, but unfortunately her plan was not structured in a manner that made economic sense. Sec. Ona and Dr. Venida have a chance to do it over…a chance to do it right. Executed well, the Philippines can very well be the medical capital of Asia and the center of research as Imelda originally planned.
Dr. Venida dreams of a Philippines on the cutting edge of nano-technology and stem cell treatment. These fields, he asserts, are the wave of the future and nothing would make him happier than to see the Philippines in the center of it all.
With the integration now on its way, the Filipino has a chance to be famed not only for his excellent domestic care…but also as a provider of state-of-the-art health services.
The vision that started some 30 years ago will now come to fruition, thanks to the headstrong determination of DOH Secretary Enrique Ona and his chief coordinating officer, Dr. Nestor F. Venida. The initial phase of the plan is to integrate the Philippine Heart Center, National Kidney Institute, Lung Center of the Philippines, Philippine Children’s Hospital and the East Avenue Medical Center. These institutions put together make the Philippines a regional force to be reckoned with in as far as depth and extent of medical services are concerned. No other country in the region offers medical facilities of this scale in one connected belt.
Subsequently, the plan is to fold in the Philippine Hematology Center, the National Brain and Nerve Institute (the first medical institution to be built under the PPP scheme) and the National Orthopedic Hospital. The latter is to be relocated from its current site to Quezon City’s medical belt as well. All these will make the Philippines even more competitive on a global scale.
When completed, the medical belt is said to be branded “The Philippine Center for Specialized Healthcare.” The fact that the DOH even talks about branding alludes to its direction to “sell” it as a hub for medical tourism.
This is a welcome development given that the Philippines is in desperate need of alternative sources of foreign exchange. At present, the country is dangerously dependent on the electronics and BPO industry (as sources revenues) and this leaves us defenseless against the volatilities in these sectors. Having the medical industry develop into a new source of revenue will do us good. We are, after all, known worldwide as highly skilled healthcare workers with excellent bedside manners.
Getting Integrated
The above-mentioned medical institutions were built during the Marcos era and operate under separate sets of management and operating systems. As government institutions, their respective by-laws mandate them to allocate a substantial chunk of their business to charity cases. As a result, none of them are financially self-sufficient today. Each still relies on government subsidies to cover anywhere from 20 to 40 percent of their operating expenses. Each varies in the degree of financial health, with the Lung Center in the best position, thanks to the prudent fiscal management of its executive director, Dr. Jose Luis Danguilan. Still, none of them can afford to finance equipment upgrades or facilities modernization on their own.
Secretary Ona’s plan, originally based on Dr. Venida’s thesis, calls for the eradication of expense duplicities. Duplicities can come in the form of common use equipment like x-ray machines, lab equipment, ambulances, etc., as well as backroom functions such as accounting, human resources, engineering and security. All these translate to tremendous savings that can otherwise be channeled to new equipment, new technologies, and above all, research.
As far as management is concerned, the integration envisions a single Board of Trustees to govern the entire medical belt, as opposed to the current framework where each unit operates separately. Not only will this generate savings in management fees, it also fosters more coherence, better coordination and better administration of the country’s medical program.
Sources tell us that the integration plan enjoys the full support of Malacañang and that it is being pushed for full execution before President Aquino ends his term in 2016. But as expected, certain parties are in opposition. We were told that some members of top management from affected hospitals are in strong resistance, as are many rank and file employees. Dr. Ona and his team still face a tough road ahead in gaining widespread buy-in of the plan.
While the good Secretary does his best not to displace anyone, the reality is full integration will always have its casualties. Those redundant, irrelevant and less competent will have to give up their turf in the name of greater efficiency and progress. I can only hope that the personalities involved will take the high road and support whatever is best for the country. This, after all, is the true essence of public service.
The Benefits Of Integration
The biggest beneficiary of the integration plan is us, the Filipino people. At long last, we will be given access to the best possible medical care without having to leave our shores.
As far as the poorest of the poor are concerned, they too will have access to world-class medical care, more so after integration than with the present setup. Despite being mandated to service the marginalized sector, less than 20 percent of patients in the QC medical belt are actually charity cases. This is because government subsidies only cover a fraction of their operating expense and hospitals still need to generate their own revenues to keep afloat. The integration plan aims to put our medical institutions in the pink of health (by slashing overhead expenses), and with this comes the ability to absorb more charity cases.
Cheaper medical care is yet another benefit. Economies of scale in the purchase of consumables like medical supplies and drugs are seen to drive prices down. Savings from this will be passed on to the consumer via cheaper toll charges. In addition, a centralized medical database will greatly reduce HMO and Philhealth fraud, a problem that is quite rampant today.
Finally, the financial benefits that medical tourism can bring are enormous. When fully realized, the entire medical belt will have the capacity to treat practically all kinds of maladies, save for mental illness, reconstructive and cosmetic surgery. The spectrum of care is far and wide.
The Original Vision
Imelda had a vision 30 years ago, but unfortunately her plan was not structured in a manner that made economic sense. Sec. Ona and Dr. Venida have a chance to do it over…a chance to do it right. Executed well, the Philippines can very well be the medical capital of Asia and the center of research as Imelda originally planned.
Dr. Venida dreams of a Philippines on the cutting edge of nano-technology and stem cell treatment. These fields, he asserts, are the wave of the future and nothing would make him happier than to see the Philippines in the center of it all.
With the integration now on its way, the Filipino has a chance to be famed not only for his excellent domestic care…but also as a provider of state-of-the-art health services.
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