Joining the ACE group if putting up hospital

Innovation in health care in many ways

Ateneo Professional School
Makati City

The field trip to Pateros Medical Center of the ACE group was a revelation.  There are now 20 in the Philippines.  They cover the entire Philippines.  They boast of their superiority in numbers, economies of scale, connection at Land Bank and huge credit lines (in billions) generous terms, wealth of experience in running a hospital, and more.

There are at least 6 med entrep students who run their own hospital.  One thinks of putting up a hospital soon.   For northern Luzon where there is a little ACE presence, I suggest that you are better off to make things easier for you, to join the ACE group or follow their business model.   The three who are currently running their own hospital may wish to level up and benchmark what they saw. The minimum that Dra Vi and Dra Jane can do is to link them to LBP and their suppliers of reagents and other top of the line equipment.

This way, we can really help make superior health care become accessible to everyone in remote areas of the Philippines.

The next step is to look at the prepaid health card services tied up with ACE (From where I am coming from, that is the next opportunity)

Almost fanatical adherence to the ACE vision and core values

Innovation in health care in many ways

Rizal  Philippines
August 7, 2016

From the stories of Dra Jane, I and I have not seen the man on top, Dr Ace himself (the boyish looking Oxford Cardio Thoracic surgeon who is the inspiration behind the Pateros hospital) I could sense that the driver the entrepreneur, the visionary behind the hospital is right in our class room amongst us.  That Dra Jane encouraged Dr ACE to be the head so that the group can save money is entrepreneurial leadership at its best.  To have the idea that instead of leasing the lot they all contributed for to build a hospital GO FOR THE HOSPITAL BUILDING TAKES A LOT OF COURAGE  and entrepreneurial gumption.  Between taking on debt of P400 million and raising P200 million in equity is quantum leap an act of faith.  That is why she is the medical director.  She has to make the whole thing work, deliver value to the patients and above all to Land Bank and hundreds of other investors   MD and non MD

I could guess that after observing that instead of posting CLAYGO (clean as you go) Dr. Jane had the ACE (Always Clean after Eating) means that probably the ACE in the vision that means Altruism, Compassion and Ethics could have come from the medical director and not the Oxford guy.

Kudos, Bravo Zulu. Keep this up

Field trip to Ace Group Pateros Medical Center

Innovation in health care in many ways

Rizal Philippines
August 7, 2016

Part of the syllabus specified a field trip to any establishment.  We decided that we will visit the Pateros Medical Center which is nearby at Pateros.  Its medical director is Dra. Jane Panaligan. We would also conduct the last 4 Special Report in their auditorium

Prior to yesterday, I requested that a presentation in the business plan format be prepared by the ACE group composed of Dra. Hazel Carandang, Dra Vi Beltran and Dra. Jane Panaligan

Thus I took a trip to Pasig and Pateros yesterday and went to the ACE Hospital at 12:45, well ahead of the class.

We had lunch (thank you Dra Vi, the head of marketing) and then the SR and then the guided tour to all of the 7 floors.

The total cap ex for the hospital is P600 million due to the extra cost of P60 million due to the foundation.  The soil is soft so they had to have pile foundation of 38 meters which took about a year to complete.  The hospital construction if funded by equity (30:70) and Land Bank of the Philippines loan.

Having a group according to Dra Vi creates synergy and leverage:  they have connections at DOH, Land Bank and can get the best terms for their equipment because they buy in bulk (Economies of scale)

                                                        A sumptuous lunch. Thank you Dra Jane Vi

                                               Our host, guide;   write your checks now!

Feedback on the business plan draft submitted

Innovation in health care in many ways

These are my comments regarding the business plan draft submitted last Saturday.  Thank to all those who did their best to comply.

1. The drafts are still work in progress. Most are only 30 to only 40% done.  A lot more work has to be done to put flesh into the business plan. As we say that MDs are scientific and evidence based, the BP has to be buttressed with more information (clearer information) that the concept will work

2.  There are those who subscribe to other BP formats. There are about several thousand business plan formats. But for our purposes, the business plan format that shall be graded only shall subscribe to this format and which was published in the web site:

Notes on business plan submission

3.  Required parts of the business plan and their weights/points system of grading:

Contents of a business plan and their weights in grading

1. Business concept and business model                                             10 points
2.  Executive Summary                                                                        5 points
3. Business Objectives -  VMOKRAPI                                                  10 points
4.  Organization  Technical, Financial and Middle Management                 5 points
5.  External Environment:  Macro and Micro Market                               10 points
6.  Product Customer                                                                            5 points
7.  Sales projection                                                                              10 points
8.  Operations (how to produce the product or service                            10 points
9.  Strategy         SPATRES    (enterprise delivery system                     20 points
10   Financial Projections                                                                   10 points
11. Compliance with regulations and exit strategy                                  5 points