The Medical City returns to profitability despite seeing fewer patients

MANILA, Philippines - The Medical City (TMC) turned around last year, registering profits as revenues improved, even though it treated fewer patients. Net income reached P434.4 million in 2008 from losses of P410.8 million last year as gross profits rose by nearly a third from P941.15 million to P1.228 billion, TMC reported. TMC, which manages the hospital of the same name, is on track to meet its earnings target for this year, the company said. For the first four months of the year, the hospital's revenues amounted to P1.1 billion, 10-percent higher than results reported during January to April last year. However, patients checking into the hospital have dropped by three-percent. Fewer patients have decided to seek treatment because the current crisis may have forced them to “cut back on medical-related expenses," said Benita Macalagay, senior vice president for Finance & Administrative Services Group. Patients with specialized needs – those with heart ailments and stricken with cancer – only go to the hospital for their treatment. Despite fewer patients, TMC is planning to expand in the near term. It is eyeing to establish a “secondary or a tertiary hospital" in Dagupan. It will also be partnering with a Tagaytay resort for wellness and medical tourism. The proposed facility will offer “massages, acupuncture and other related services," said Margaret Bengzon, head of the TMC Strategic Services Group. Although business has been steady, Bengzon admitted that attrition rates for related medical services such as pharmacists and medical technicians are high. “We have noticed lesser turnover rate for nurses especially after the US stopped recruiting nurses from overseas," she said. TMC also plans to build nine satellite clinics and complete the hospital's second tower in its main campus in Pasig City. TMC will be spending between P200 million and P300 million for the “tertiary hospital" or a major hospital in Dagupan next year and will allot P240 million for the 12 TMC branches this year. Satellite clinics usually occupy between 180 square meters to 600 square meters. Most of the TMC's satellite clinics are also located in major malls. - GMANews.TV