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)

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!

Business Plan Draft by Dr. Jane Cleofe Panaligan

Dr. Jane Cleofe Panaligan

Entrepreneurship HO2

AGSB MBA-H

Prof. Jorge Saguinsin

DAILY'S AUTOMATED SARI-SARI STORE
Daily's  Automated Sari Sari Store is the sari-sari store of the 21st Century future, fulfilling a need that will continue to exist into the future - the need for speed.  It will be the first fully automated, 24 hour sari-sari store that is more like an enormous dispensing machine than the traditional store. It expects to capture market share by becoming the low cost leader in the convenience store industry by significantly reducing one of the primary expenses, which is labor.  The possibilities for expansion are excellent not only in the local area, but in neighboring communities as well.

The Ownership
It is a single proprietorship start-up business. Daily's is expected to open its first store in  6205 Einthoven cor Dian St., Palanan, Makati City by January 2017.

The Products/Services
Daily's automated Sari-Sari Store will sell the same products as other sari-sari stores in the same packaging sizes, quality, and quantity as other stores. This includes soft drinks, fruit juices, sport drinks, hot and cold snacks, a limited number of grocery items such as canned soups, microwaveable meals, condiments, bread, house cleaning supplies, pet supplies, paper products, toothpaste, etc. Likewise, Daily's is looking into ways to sell restricted items such as beer, wine, and cigarettes.

All products will be locally or nationally branded. In addition each computerized transaction machine can dispense cash,  phone cards and other coupons and will have the ability to create personal accounts that can display preferred items, retain shopping lists and other services.

The Market
In this age of supermarkets and hypermarkets, why are sari-sari stores still relevant to categories such as snack foods?  The sari-sari stores in the Philippines continue to serve as the pantry extension of about 20 households each. Hence, the outlet type remains as an important retail channel contributing 36% of fast-moving consumer goods (FMCG) peso sales. As of June 2014, an average sari-sari store can sell FMCG products amounting to Php26,000 a month, about Php5,000 more than the average two years ago.

Financial Considerations
The start-up requirements come to 2-3Million Pesos,  which are largely single time fees associated with opening the store. It should be noted that we expect to be operating at a loss for the first six months before advertising begins to take effect and draw in customers.

Daily's Automated Sari-Sari Store will be receiving periodic influxes of cash in order to cover operating expenses during the first two years as it strives toward sustainable profitability. Almost all of this funding has been arranged through bank loan. We do not anticipate any cash flow problems during the next three years.

Objectives

These are the goals for the next three years:

·         Achieve profitability by July Year 1;

·         Earn approximately 2M pesos in sales by Year 3;

·         Start up second store by Year 4.

Mission

The primary objective is to create a new and revolutionary distribution outlet that will significantly reduce prices for its customers and provide greater services with an equal level of quality. It seeks to be first to market with this daring new idea so as to capture market share and create greater than average profits.

Keys to Success

In order to survive and expand, Daily's Automated Sari-Sari Store must keep the following issues in mind:

·          attain a high level of visibility through the media, billboards, and other

         advertising.

·         establish rigid procedures for cost control and incentives for maintaining tight

        control.

·          expend a significant amount on innovation in order to constantly be able to

         offer better and greater products and services.

Strategy and Implementation Program

Daily's Automated Sari-Sari Store's  competitive edge will be the lower prices we will charge our customers and the novel purchasing experience that will draw shoppers. The most critical element of Daily's success will be its marketing and advertising. In order to capture attention and sales it will use prominent signs at the store locations, billboards, media bites on local news, and radio advertisements to capture customers.

Many of the initial customers will be drawn to the unique nature of the store and will then have the opportunity to realize the cost savings of Daily's.

Sales Forecast

Financial Plan

Projected Profit and Loss