STI acquires ‘significant stake’ in Delos Santos Medical Center

BY JENNIFER A. NG, BusinessWorld Reporter STI has acquired a "significant stake" in Delos Santos Medical Center, a top official of the education services provider said on Thursday. However, STI President and Chief Executive Monico V. Jacob won’t reveal details about the acquisition. But he said STI and Delos Santos are looking into investing about P1 billion to expand the hospital, put up diagnostics clinics, and buy other hospitals in Metro Manila. The planned investment was announced in a briefing in Quezon City yesterday where STI announced its acquisition of a stake in Delos Santos. The hospital is now renamed the DLS-STI Medical Center. Mr. Jacob said the buy-in is part of the company’s initiatives to strengthen a scheme which allows STI students to immediately land a job after graduation. "The plan is to improve the facilities of the new DLS-STI Medical Center. With fresh capital, a medical arts building and a state-of-the-art operating facility will be added. We also plan to put up satellite clinics around Metro Manila," Mr. Jacob said. STI Chairman Eusebio H. Tanco said the plan is to expand the capacity of the hospital to 200 beds from the current 150. The rehabilitation of the hospital is expected to cost more than P300 million. Mr. Tanco revealed they are now eyeing the acquisition of at least three hospitals with a 70- to 150-bed capacity south of Manila. "We’re also planning to acquire hospitals in other parts of Metro Manila which will serve as our satellite clinics," he said, noting the acquisitions may also cost more than P300 million. "Our [foray] into the health care business will follow the STI model. We would like to bring medical care to people wherever they are," Mr. Jacob said. Aside from the acquisitions, DLS-STI is looking into setting up about five diagnostics clinics. "In all, we’re looking at investing about P1 billion for [all these initiatives]," Mr. Tanco said. As part of efforts to cash in on the lucrative health care and wellness industry, DLS-STI officials said they are also looking at going into medical tourism. Officials of t he two firms, however, refused to divulge the terms of their partnership in terms of equity sharing. Dondi Delos Santos, the hospital’s vice-president, revealed this is not the first time the hospital had partnered with STI. He said STI had acquired a majority share in Delos Santos College in 2002 and transformed it into the DLS-STI College of Health Professions. The DLS-STI Medical Center venture is the first acquisition of STI in a hospital. Outside of the venture, STI said it plans to acquire more hospitals to strengthen both its nursing program and the system assuring graduates of jobs. To date, STI has invested more than P100 million in its nursing program. Part of the amount was spent to hire accredited faculty and facilities for its nursing skills laboratories which were designed to stimulate the actual hospital setting in each STI campus offering the nursing program. STI provides a comprehensive portfolio of baccalaureate and diploma programs in information and communications technology, business, education, engineering, and health care in its more than 100 campuses nationwide. The hospital was put up by Dr. Jose V. delos Santos, Sr. and started as a 30-bed clinic in 1949.