55 taon ng alagang Mercado

Today marks the 55th anniversary of the Mercado General Hospital, Inc. From a 12-bed lying-in clinic in Tanauan, Batangas, the company has grown to include operations in Manila, Cebu and Iloilo. Coming soon to Laguna, Quezon City, Bacolod, Bulacan and Cagayan de Oro.

Mercado General Hospital, Inc. (MGHI) had its beginnings in 1957 as a 12-bed lying-in clinic then known as the Mercado Clinic. The founder of MGHI, Dr. Daniel O. Mercado, Jr., after finishing his internship at the Baltimore Casualty Hospital in Washington, D.C. decided to come back to his hometown of Tanauan, Batangas to provide healthcare services to his town mates.

MGHI, which operates under the trade name Daniel Mercado Medical Center, has since grown to become one of the up and coming medical groups in the Philippines. The 12-bed lying-in clinic is now a 100-bed Level 4 tertiary hospital and was one of the first hospitals in the country to be recognized as a Center for Excellence by the Philippine Health Insurance Corporation (PhilHealth). It is currently being expanded to add another 40 beds. 

MGHI also owns and operates the University Physicians Medical Center (UPMC) through its subsidiary, Mercado Ambulatory Surgical Centers, Inc. (MASCI). UPMC is the first Ambulatory Surgical Center (ASC) in the Philippines. It is situated at the Faculty Medical Arts Building (FMAB) inside the UP-PGH Compound in Manila. It opened in September, 2010 and despite its start-up status was able to reach profitability by November, 2011. Its medical staff complement is composed solely of faculty members of the University of the Philippines College of Medicine.

On November 11, 2011, MGHI entered into a Memorandum of Understanding with a group of doctors in Iloilo City under the banner of Panay Medical Ventures, Inc. (PMVI) to establish a specialty hospital in Iloilo City. The agreement calls for MGHI to acquire a majority interest in PMVI which will operate the hospital under the trade name UPMC – Iloilo. UPMC – Iloilo will be an ASC with an attached 40-bed facility. It will provide a much-needed infusion of advanced healthcare delivery services for its trade area which not includes the city of Iloilo but also the entire island of Panay. Plans also incorporate the eventual expansion of the facility into a 250-bed hospital. On February 7, 2012, PMVI began negotiations with Ayala Land, Inc. (ALI) whereby ALI will prospectively lease the land upon which UPMC-Iloilo will be built as well as build the facility itself. Groundbreaking is scheduled for April, 2012 with UPMC-Iloilo expected to open its doors in 2013.

MGHI has entered into a Management and Operations contract with Southwestern University of Cebu to manage Sacred Heart Hospital. MGHI will begin this engagement on July 1, 2012.

The DMMC Institute of Health Sciences (DMMC-IHS) is a tertiary-level institution offering degrees in allied healthcare professions. It was set up and its purpose remains to provide MGHI and its healthcare institutions with a steady supply of medical and non-medical professionals. This is a critical task particularly in light of periodic shortages of medical professionals in the areas of medical technology, radiologic technology and biomed.

The 5-year strategic plan

With the completion of its previous 5-year strategic plan in 2011, MGHI crafted a new strategic 5-year plan encompassing the years 2012 to 2016. The plan maps out the areas of healthcare where it aims to expand and compete in, the resources and other requirements necessary to meet the goals as identified and the specific metrics by which success or failure will be judged.

MGHI understands its core competence to be the delivery of healthcare services across various platforms in the most cost-effective way possible. It aims to leverage this competence into the reduction of healthcare delivery costs in the Philippine healthcare industry.

Plan for expansion

MGHI’s plan for expanding its businesses is two-fold. The first is by replicating the ASC model in other areas of Metro Manila and in key urban centers in the Philippines. The second is by acquiring underperforming hospitals outside Metro Manila. On top of this, MGHI will continue to push for organic growth within its existing facilities.

Most of MGHI’s operational systems and methods have been codified for easy replication in the operation and management of medical facilities. It has partnered with a healthcare information systems company to develop a hospital information management system which has been customized for MGHI’s needs.

MGHI is also examining other opportunities and platforms where it can leverage its competencies in healthcare management operational systems. This includes entering into operation and management (O & M) contracts with existing medical institutions. MGHI is also exploring the potential of entering Public-Private Partnerships with both national government institutions and local government units involved in public healthcare delivery services.

Organizational development

The 5-year strategic plan also incorporates a significant effort to push organizational development within the group. A core group of senior managers has already completed the re-alignment of the company’s mission to meet the enhanced plans of MGHI. The intent is to develop and cascade down an organizational culture which promotes the sense of ownership among employees across the various subsidiaries of MGHI.

The company is aware that to be able to meet its goals and fulfill its mission, it has to secure “buy-in” from members of the organization. This organizational development initiative is now in its second phase with the involvement of middle managers and supervisors. MGHI is working with Guthrie-Jensen, the human resources consulting firm, to design and implement this program.

With 55 years of experience in healthcare delivery management, MGHI continues to look for opportunities to bring its expertise to bear in finding ways to reduce the cost of healthcare in the Philippines. Its entrepreneurial yet disciplined culture has been instrumental in finding innovative ways to cut waste, build operational efficiencies and instituting fiscal controls without compromising the quality of care delivered.

MGHI prides itself as a doctor-driven and professionally managed company. These qualities are the qualities by which MGHI stands by in its quest to make quality healthcare accessible to more and more Filipinos.


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