Business Highlights

Financial and Operational Highlights

• Revenues rose 37% to P20.3 billion owing largely to the growth in COVID-19 admissions and testing
• In-patient admissions dropped 11% to 94,957 while outpatient visits jumped 24% to 3,109,785. Admissions reductions were made up for
  by higher revenues per patient due to more complex engagements from COVID-19
• Consolidated Core Net Income increased to P1.5 billion

Expansion and Others
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• MPHHI completed the acquisition of an 85% shareholding in Commonwealth Hospital and Medical Center, a 148-bed facility located in Novaliches, Quezon City, making it the 19th hospital in MPHHI’s growing nationwide network
• In our continuing commitment to ensure the health and safety of our staff and their families, the MVP Group has achieved a COVID-19 vaccination rate of 100% of its employees

How MPHHI Creates and Delivers Value

Strengthening Hospital Operations

As the largest private hospital group in the Philippines, MPHHI’s mission of bringing quality healthcare to Filipinos has been reinforced during the pandemic. Its critical role in the health frontline during this difficult time, providing essential medical care to patients with COVID-19 and otherwise, moved the company to fortify every aspect of its hospital operations, from upgrading facilities to protecting its doctors and personnel.

Across the country, MPHHI’s network of 19 Level 2 and Level 3 hospitals provided medical services to about 3.1 million outpatients in 2021, 24% higher than in 2020, ensuring first-rate customer care and quality of service. To accommodate the overwhelming number of critical cases brought about by the pandemic, MPHHI also ensured utmost efficiency in its hospital operations and made adjustments when and where necessary. In-patient admissions dropped 11% to 94,957 from 107,000 in 2020. However, 23.2% of these admissions or about 22,000 were critical COVID-19 cases. The hospitals combined performed about 640,000 COVID-19 tests, 276% more than the 170,000 tests done a year ago. As a result of these increased complex engagements with COVID-19, MPHHI’s aggregated revenue jumped to P33.6 billion.

To create and deliver this value, MPHHI utilizes several capitals that include financial capital from banks and its own cash flow; a network of world-class hospitals stocked with state-of-the-art medical equipment; investments in IT systems for healthcare delivery; teams of topnotch doctors, nurses, laboratory technicians, and other medical personnel; productive partnerships with the Department of Health (DOH); and brand reputation arising from many years of exemplary medical practice.

The company optimized operating capital, which came from cash flow from operations, shareholders equity, bank loans, and others, to fund its complex set of activities. MPHHI allocated P6.1 billion for operating expense and another P6.1 billion for personnel expense. It also invested P2.8 billion to upgrade medical equipment and facilities.

From four cancer care centers outside Metro Manila by the end of 2019, MPHHI increased this number in 2020 and 2021 with the establishment of two new cancer care centers in Calamba, Laguna and Zamboanga City. These new centers aim to make cancer treatment and care more accessible to patients who are unable to travel to major cities like Metro Manila, Cebu, and Davao.

The lifeline of MPHHI’s hospital operations are the employees providing healthcare and administrative services. In recognition of their critical role, MPHHI establishes working conditions that ensure the overall health, safety, and wellbeing of its 13,231 direct employees, 9,493 doctors, and 2,435 outsourced employees. It likewise strengthens its processes on employee hiring, training, and development. Every year, it hires new employees to reinforce its workforce and engages new consultants and project-based staff for specialized work. Given the number of COVID-19 cases that it had to handle, the company provided its frontline workers with equitable pay and benefits.

Complementing the expertise of its medical personnel are the advanced medical technologies utilized in all MPHHI hospitals, including a hospital information system, enterprise resource planning software, and existing systems in laboratory and imaging such as those used in RT, MRI, CT scan, etc. MPHHI invests in research and development, and adopts new systems for a more effective hospital operation and management, specifically on effective COVID-19 response and treatment.

The company also started a “brick-and-click” platform with the goal of making healthcare accessible and convenient for everyone. It has looked into a centralized patient ID system that will better organize medical records, while ensuring compliance with the Data Privacy Act, for easy data access and retrieval throughout its hospital network. All these improvements are anchored to MPHHI’s goal of a patient-centered service.
Another vital aspect of MPHHI’s hospital operations is its valuable partnerships with DOH, local government units, medical suppliers, suppliers of reagents and chemicals, and health insurance companies. These collaborations have facilitated the hospitals’ ability to beef up COVID-19  response, provide professional services to non-COVID-19 patients, and assist patients with respect to their health insurance.

Implementing groupwide synergy for impactful transformation

Living with the pandemic in the past two years revealed how critical it is to have a healthcare system that works. As such, MPHHI prioritized not only the smooth running of its hospitals but also seeking opportunities to improve efficiencies and synergy within its network. To effectively deliver quality care to patients, it is necessary to have strong internal systems. In 2021, MPHHI institutionalized the creation of the Integrated Governance Framework to further strengthen the synergy of its own group of companies. This new framework allowed the company to execute projects at groupwide level and enabled it to scale these projects’ impact. Implemented through a global approach, the framework will also help MPHHI to maintain the strength of individual hospital management teams while expanding the holding company’s team.

Part of this new initiative includes establishing new departments at the holding company level, such as legal and compliance, human resources, marketing, medical affairs, quality and safety, ambulatory care, and IT. These departments already exist at the hospital level, but by building them at the holding level, MPHHI will enhance its project management capability and enable the adoption of global best practices.

The company engaged and partnered with external reputable consultants for the implementation of this synergy project. It also hosted a series of workshops, summits, and meetings with hospital management teams in order to streamline their respective operations and improve hospital processes and procedures. As a result, MPHHI aligned the operations of different management teams based on new standards. It also improved
their coordination and relationship, which facilitated benchmarking and sharing of best practices across the group. MPHHI expects to reduce the costs of medicines and supplies through these enhanced operational efficiencies, allowing for improved profitability of the company and building a solid foundation for growth in the coming years.

Expanding our hospital network to reach more Filipinos
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MPHHI is proud of its nationwide network of excellent hospitals, clinics, and care centers. However, it acknowledges that this healthcare infrastructure remains insufficient to continue servicing the growing Filipino population. MPHHI aims to continue expanding its network, and in turn, increase its contribution to improving healthcare accessibility to more Filipinos.

As such, MPHHI expanded its network from 15 hospitals in 2019 to 19 hospitals in 2020 and 2021, with the acquisition of Los Baños Doctors’ Hospital in Los Baños, Laguna; Calamba Medical Center in Calamba, Laguna; Ramiro Community Hospital in Tagbilaran, Bohol; and Commonwealth Hospital and Medical Center in Quezon City. These four hospitals increased total patient capacity to 3,803 beds,  allowing the company to accumulate additional revenue of P2.66 billion in 2021.

MPHHI has plans for future expansion, thus it has set up systems to improve the overall management and acquisition process of new assets. It maintains a highly methodical, replicable, and disciplined investment strategy and process, which is implemented and reviewed by a competent and experienced team of mergers and acquisitions consultants. Crucial to this process is the assessment of the target company’s health compliance, identification and review of critical areas with high likelihood of bribery and corruption and ensuring that they pass due diligence checks and meet MPHHI standards.