Invest in hospital stocksBecoming a shareholder in a hospital offers you and your loved ones alternative coverage in times of need

Rienzie P. Biolena, RFP

Published 1:17 PM, April 22, 2015 Updated 4:32 PM, April 22, 2015 2618Kredditemail18K

As I write this article, my dear friend is spending the last moments with her dad before he goes to his final resting place.

A few days ago, she informed us that her dad was in the hospital due to a massive stroke. I asked her how she was and how they are handling the medical bills.

She said they are coping and luckily, she was able to buy stocks in a hospital near them. She was thankful I recommended it to her.

It put a smile in my heart, knowing that I have helped a dear friend with that advice.

And now I am giving the same advice to you, too: Be a hospital shareholder.

Why? Because it offers numerous benefits for you like:

Free room rates 50% discount on professional fees 50% discount on laboratory and diagnostic procedures 25% discount on cardio-pulmonary services and electrocardiography (ECG) 10% discount on pharmacy and room items Free operating and delivery room fees Free consultation on dental services 30% discount on dental procedures

The good thing about it is the benefits are not only applicable to you as a stockholder, but to your dependents as well: your parents, spouse, and children.

An alternative to insurance

This, I think, is one of the best-kept secrets in personal finance. In our world today where the cost of medical services is ever-increasing, it makes perfect sense to have ourselves covered and expand our benefits the most.

Consider retirement: 20 or 30 years from now, medical costs would have gone up like room rates, medicine, procedures, and professional fees (or PFs). If you become a shareholder, then practically all of those are slashed in half. From doctor’s PF alone, the cost savings are already substantial.

Multiply the cost savings to the number of times that you will frequent the hospital, then the benefits become more apparent.

But why is hospital stock a good alternative to insurance?

A lot of insurance products today, particularly health insurance, give a fixed rate of hospital income for policyholders.

Assume that you get P2,500 ($56.14) per day – today, that means a lot. But should you use it 15 or 20 years from now, that amount, because of inflation, would most probably be not enough.

Yet, if you become a shareholder of a hospital, you get free room rates and a fixed discount at whatever the prevailing price is. Thus, you automatically ride the inflation of medical bills by locking-in on the discount rate.

Other products also give pay-outs in the event of diagnosis and illnesses, but the value largely remains constant and does not grow with inflation. Should you have hospital stocks, then the benefits, too, remain the same, whatever the cost.

Investment option

Hospital stocks can also be an alternative investment.

You can already become a stockholder for as low as P200,000 ($4,523.76). This amount, though, can be quite staggering for beginners. But it can be paid on an installment basis, making it more affordable for those who want to avail.

As stock investment, hospital stocks also give additional income in the form of dividends, or you can sell it at a higher price per share and earn from it as well.

Different hospitals may give varying packages but they offer almost the same benefits. Should you decide to secure your and your family’s future health, drop by the nearest hospital and inquire how you can be one of their stockholders and avail a lifetime of benefits.

Got a question about personal finance? Tweet @rapplerdotcom or email us at business@rappler.com. – Rappler.com

Rienzie is a Registered Financial Planner of RFP Philippines. He is also an accredited investment fiduciary of Pennsylvania-based fi360 and an international member of the Financial Planning Association, the largest association of financial planners in the US. You may reach Rienzie at rienzie.biolena@gmail.com, his Facebook account or Twitter @rbiolena.

US$1 = P44.21

Hospital scene image via Shutterstock