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THE PHILIPPINE PUBLIC PRIVATE PARTNERSHIP (PPP) PROGRAM
IN HEALTHINVESTORS’ FORUM
CELSO C. MANANGAN OFFICER-IN-CHARGE
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The Health Agenda of the Aquino administration identifies Universal Health Care (UHC) as among its most important programs.
The plan of the Department of Health is to improve hospital services delivery of all DOH hospitals through the involvement of the private sector through PPP program.
Background
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The Department of Health (DOH) reform agenda for 2010-2016 is anchored on the attainment of universal health care (UHC) which include the following:– UHC Program through a refocused Philippine health
insurance– Construction and rehabilitation of, and support for,
public health facilities– Attainment of Millennium Development Goals 4, 5 and
6 (reduction of maternal, neonatal and infant mortality; eradication of public health diseases such as tuberculosis, malaria and dengue, etc.)
Background
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The project aims to raise health standards through the upgrading and modernization of the facilities. The project components cover the following:
• Construction of new healthcare building and facilities.
• Hospital facilities involves the entire development and identifying the services required, and overall delivery of services.
• Hospital Equipment, furniture & fixtures: Provision of medical equipment including hospital beds, etc.
• Total Computerization. Hospital Information system linked between medical and administrative as well as external stakeholders (Philippine Health Insurance Corporation (Philhealth), Department of Health (DOH), Department of Budget and Management (DBM), etc.).
• Training and Technology Transfer
Project Components for PPP implementation
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ONGOING PPP PROJECTS IN HEALTH
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Modernization of Philippine Orthopedic Center
• PhP5.6 Billion (JPY 13.38 Billion)• 700-bed capacity specialty hospital• Build-Operate Transfer Contract for 25 years.• Status: Ongoing procurement of Independent Consultant
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Modernization of Bicol Medical Center
• PhP855 Million (JPY 2.04 Billion)– funded by the government through DOH• 800-bed capacity hospital• Design and Build Scheme – ongoing construction
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Modernization of Cagayan Valley Medical Center
• PhP305 Million (JPY 729 Million) – funded by the government through DOH• 600-bed capacity hospital• Design and Build Scheme – ongoing construction
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Modernization of Cotabato Regional Medical Center
• PhP696 Million (JPY 1.66 Billion)– funded by the government through DOH• 500-bed capacity hospital• Design and Build Scheme – ongoing construction
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Regional Cancer Centers
• PhP75 Million (JPY 179 Million) – infrastructure funded by the government through DOH• Oncology Equipment provided by the Private Sector investor• Revenue sharing arrangement through Service Management Contract (financing, supply,
delivery, operation, commissioning and management of a Radiation Oncology Center Project
• CVMC
• BGHMC
• ZCMC
• NMMC
• VSMMC
• WVMC
• BMC
• NKTI, RMC
• SPMC
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Regional Cancer Centers
• Of the nine cancer centers, three (BGHMC, NKTI, RMC) has already its Linear Accelerator• The equipment of the six remaining cancer centers is still for bidding.
• CVMC
• BGHMC
• ZCMC
• NMMC
• VSMMC
• WVMC
• BMC
• NKTI, RMC
• SPMC
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East Avenue Medical Center
• Expansion from 700-bed to a 1,000-bed medical center• Involves the design and construction of 7-storey new building with 2,500 sqm footprint• Status: Awarded
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Modernization of Jose Fabella Medical Center
• Transfer of Jose Fabella Hospital to DOH Compound • 9-storey new hospital building with 800 bed capacity.• Cost of Infrastructure is PhP1.6 Billion (JPY 3.82 Billion) and medical equipment is
PhP383.25 Million (JPY 916 Million) funded by the government • Status: Design & Project Management awaiting award
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Modernization of Eastern Visayas Regional Medical Center
• Involves the expansion and relocation of the hospital to a new site which is also located in Tacloban• Expansion of bed capacity from 325 beds to 500 beds. • Various Funding Sources: 2015 Health Facilities Enhancement Program, 2013 Calamity Fund,
Japanese International Cooperation Agency (JICA) grant, and Bloomberry Foundation Donation• Status: For presentation to NEDA ICC Technical Board
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NKTI Hemodialysis Center
• Procured in 2003 under lease agreement for 5 years and was renewed again in 2009 • At present, there are 47 dialysis machines in operation at the new hemodialysis center
of NKTI• Status: Second contract is being implemented; third contract will be for bidding
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PROPOSED MODERNIZATION OF DOH HOSPITALS
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Vicente Sotto Memorial Medical Center
The Modernization of the VSMMC involves an increase in bed capacity from the current 800 beds to 1,400 beds, and would entail the construction of a new multi-storey building and provision of modern medical equipment to accommodate the expansion while ensuring the continuation of the hospital’s services.
Estimated Project Cost: Php 5.77 Billion (JPY 13.79 Billion)
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Gov. Celestino Gallares Memorial Hospital
• Expansion in bed capacity from 250 beds to 500 beds• To be transferred in Barangay Malayo, Municipality of Cortes• Estimated project cost is PhP 2.2 billion (JPY 4.78 Billion), comprises of design and
construction of a new 6-storey main hospital building with a total floor area of 30,000 square meters, and procurement of state-of-the-art medical equipment.
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Tri-Medical Complex
• Involves the modernization and integration of the three medical centers proposed to be located in the San Lazaro Compound: The Dr. Jose Fabella Memorial Hospital, the Jose Reyes Memorial Medical Center, and the San Lazaro Hospital
• Estimated Project Cost: Php 11-15 Billion (JPY 26.29 – 35.85 Billion)• Status: Included in the JICA-DOH M/D
Conceptual Design for the Dr. Jose Reyes Memorial Medical Center
Conceptual Design for the San Lazaro Hospital
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Philippine Children’s Medical Center
• Expansion of beds from 275 to 500 beds• Involves the construction of 12-storey building with private wards and 8-storey medical
arts building within the PCMC Lot• Status: Under Business Case development
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Region 1 Medical Center
• Expansion of beds from 300 to 600 beds• Involves the construction of a 12-storey main building and 6-storey medical arts
building• Estimated Project Cost: Php 1.4Billion (JPY 3.36 Billion)
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Western Visayas Medical Center
• Increase bed capacity to 1,000 from the current level of 450 beds. • Involves the construction of a 6-storey Medical Arts Building, a 5-storey Diagnostic
Complex, and a Cancer Center.• Estimated Project Cost: Php 1.5Billion (JPY 3.585 Billion)
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Zamboanga City Medical Center
• Increase bed capacity to 600 from the current level of 400 beds. Involves the construction of a 5-storey structure, transfer of administrative offices, and
preservation and renovation of the old building with historical value. Estimated Project Cost: Php 926 Million (JPY 2.21 Billion)
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Bicol Regional Teaching and Training Hospital
• Descriptions: It involves the construction of a 5-storey structure for hospital wards.• Estimated Project Cost: Php 1.3 Billion (JPY 3.107 Billion)• Status: Under Business Case development
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Philippine Blood Diseases and Transfusion Center
• 250-beds specialty hospital• Proposed for Operations & Maintenance contract via PPP• Ongoing bidding for building III
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Medical Arts Building
• The MAB Projects provide affordable and sufficient doctors’ offices for the hospitals; lure top level medical practitioners to render service in government hospitals; and provide additional revenues.
• Proposed in 15 hospitals: CVMC, R1MC, ITRMC, MMMC, BGHMC, NKTI, RMC, BMC (Batangas), BRTTH, BMC (Bicol), WVMC, VSMMC, ZCMC, CRMC, SPMC
• CVMC
• BMC, BRTTH• NKTI, RMC
• R1MC, ITRMC, MMMC• BGHMC
BMC •
• • VSMMC
• ZCMC
WVMC
• CRMC
SPMC•
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ELIGIBLE PPP PROJECTS FOR SPECIALIZED HEALTH SERVICES
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Radiation Oncology Center
• Provision of medical equipment (Linear Accelerator, Mammogram, CT Scan, MRI, Cyclotron, PET-CT)
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CT Scan
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MRI Machine
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X-ray Digitization / Radiology Imaging System
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Health Information Management System
• It consists of the following: – applications systems development– interconnections of systems– internet/network infrastructure upgrade– hardware acquisition upgrade – software procurement and acquisition of necessary licenses
• Proposed for Service Management Agreement
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Picture Archiving and Communication System
• Involves the financing, supply, delivery, operation, commissioning and management of a Picture Archiving and Communication System (PACS) Project.
• Service Management Agreement for 5-10 years
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Other Possible PPP Projects Modernization of National Center for Mental Health Philippine Heart Center in Bicol National Rehabilitation Medicine Center Quirino Memorial Medical Center Research Institute of Tropical Medicine - Vaccine Production Center Project National Center for Geriatric Health Lung Center of the Philippines – Hemodialysis, IT, and Aerospace Medicine Projects UP Manila Parking Building Project Medical Oxygen Plant Cavite Provincial Hospital (General Emilio Aguinaldo Memorial Hospital) Caloocan City Medical Center LGU Pili Maternal Child Care Hospital Modernization of Dr. Fernando B. Duran Sr. Memorial Hospital (Sorsogon) Eastern Samar Provincial Hospital Leyte Provincial Hospital South Cotabato Provincial Hospital Surallah District HospitalTotal = 17
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POSSIBLE PPP CONTRACTUAL ARRANGEMENTS
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Contractual Arrangements
Build-Transfer / Turn-key Contract Build-Lease-Transfer Operation and Management Service Management Agreement
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• Quality hospital care services are provided to patient that will ensure better health outcomes.
• Services will promote efficiency in medical care, effective treatment of medical cases and promotion of good health.
• Reliable, immediate and convenient patient care will be expected.
• Technical training for medical and paramedical staff will be enhanced contributing to improved retention and future recruitment of additional staff.
Health Benefits
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• Established by virtue of AO 2012-0010 dated March 2, 2012
DOH-CEP3H
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• Usec. of Health for National Capital Region and Metro Manila Hospital Operations Cluster as head
• Functions:– Ensure effective and efficient implementation of PPP
projects of the DOH– Act as a clearing house for collecting experiences,
analyses and dissemination of best practices
DOH-CEP3H
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International Public Private Partnership (PPP) Specialist Centre for Health
Manila, the PHILIPPINES
UNITED NATIONS
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United Nations Economic Commission for Europe (UNECE)
The International PPP Specialist Centre in Health – Philippines was established last November 2012 through a memorandum of agreement between the UNECE and the DOH
The Specialist Centre on Health is charged with the major task to identify best practice in PPP in health and development of PPP standards in health policy, etc.
By realizing this mission, the Centre will become the global and focal centre on PPP in the health sector.
The Centre will also help to train government officials in the new skills required to do PPP in the health sector, such as project management - identification, structuring, implementation and monitoring.
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THANK YOU
Department of Heath – Center of Excellence on Public Private Partnerships in Health (DOH-CEP3H) Address: 3rd floor, National Kidney and Transplant Institute Diagnostic Centre, East Avenue, Quezon City 1001Email: [email protected] Telephone: (+632) 981-0300 loc. 3463, 3464
