Metro Pacific takes over Los Baños hospital
The country’s leading hospital operator Metro Pacific Hospital Holdings Inc. (MPHHI) has signed a deal to take over 80-bed Los Baños Doctors Hospital and Medical Center Inc. (LBDH), the first hospital in Los Baños, Laguna.
MPPHI signed an investment agreement with LBDH and its founders to invest a total of P250 million in the form of common and preferred shares that will give it 51-percent equity interest in the enlarged capital of the company, parent conglomerate Metro Pacific Investments Corp. disclosed to the Philippine Stock Exchange on Thursday.
Established in 1975, LBDH is level 2 hospital located along Lopez Avenue, Batong Malake. It serves patients not only from Los Baños but from adjacent areas of Calamba City and the Municipality of Bay.
LBDH recently completed the construction of an eight-storey building which will add up to 26 new rooms and 44 additional doctors’ clinics, expanding the hospital’s ability to cater to the growing healthcare needs of the community.
“We, the founders of Los Baños Doctors Hospital, are very excited to welcome MPHHI, the largest private hospital network in the country, as our partner in our continuous pursuit of providing ever-improving healthcare services to our community,” said Leslie Reyes, director-founder and former chair of LBDH.
“We invited Metro Pacific at a very crucial time in our hospital’s history. We just completed the construction of our expansion building and we chose a partner who we know has the track-record to help us operationalize and maximize this added capacity in order to reach and serve more patients,” said Ernesto Pua, also a founder as well as former director and president.
“We trust that, as they have done for the other hospitals in their portfolio, Metro Pacific will not only preserve but build-on and strengthen the 45-year legacy of our hospital,” added Renato Torres, director-founder of LBDH.
The transaction is seen in line with MPIC chair Manuel V. Pangilinan’s vision of bringing quality and affordable healthcare to Filipinos all over the country.
MPHHI president and chief executive officer Augusto Palisoc Jr. said: “We appreciate and thank the founders of LBDH for inviting and allowing us to invest in their fine hospital. We are likewise excited to work with them, as well as with all the doctors and employees of LBDH, in continually expanding and growing their service capabilities so that Los Baños and its adjacent communities will always have accessible quality healthcare.”
Late last year, MPHHI consummated a P35.3-billion deal to bring in a consortium led by American private equity firm KKR as a new strategic investor. MPIC retained 45 percent voting rights in MPHHI but its economic interest is diluted to 20 percent from 60 percent.
Apart from KKR, the new investor consortium which now controls 80 percent of economic interest in MPHHI includes GIC, the sovereign wealth fund of Singapore which had invested in MPHHI earlier on.
Since investing in the hospital space over a decade ago, MPHHI’s nationwide footprint now covers seven other provincial hospitals (Davao Doctors Hospital, Riverside Medical Center in Bacolod, Central Luzon Doctors’ Hospital in Tarlac, West Metro Medical Center in Zamboanga, Sacred Heart Hospital in Malolos, Bulacan, St. Elizabeth Hospital in General Santos City and Manuel J. Santos Hospital in Butuan), and seven other hospitals in Metro Manila (Asian Hospital, Cardinal Santos Medical Center, Manila Doctors Hospital, De Los Santos Medical Center, Our Lady of Lourdes Hospital, Marikina Valley Medical Center, and Jesus Delgado Memorial Hospital).
Last December, MPPHI also signed a deal to acquire 100-room Manuel J. Santos Hospital (MJSH) in Butuan.
Completing MPHHI’s portfolio are two healthcare colleges (Davao Doctors College and Riverside College in Bacolod), five primary care clinics (Megaclinic in SM Megamall, TopHealth in SM San Lazaro, Keralty in Metlife Mall Pasay, Keralty in Filinvest Mall Alabang, and Una Konsulta in SM City Bacolod), and four cancer care radiotherapy centers through joint ventures with hospitals (Lipa Medix in Batangas, Central Luzon Doctors Hospital in Tarlac, Riverside Medical Center in Bacolod, and St. Elizabeth Hospital in General Santos).
