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This is a strategic management paper of World Citi Medical Center (WCMC), a tertiary
hospital formerly known as Quezon City Medical Center, owned by the Guico family. Our goal
is to be able to analyze the current situation of World Citi Medical Center, evaluate its products
and services and develop strategies for the hospital to cope with the changing health care
environment .
WCMC has positioned itself as the first
medical hotel.
confined in a hospital with a hotel ambiance may be attractive to some patients but it has also
built a reputation of being an expensive hospital.
impression of being clean, devoid of hospital smell and with quality service. But the high cost of
their services seemed to have more impact to the customers than the experience of being in a
"hotel".
occupancy rate showed a downward trend. Currently, hospital occupancy is merely 45%.
World Citi Medical Center's challenge is to reinvent itself to be able to improve image
and subsequently improve utilization of its products and services.
changes in health care industry in the Philippine setting the past 15 years. WCMC must adapt
to these dynamic environmental changes without sacrificing the quality of health care. In the
private sector both Metro Manila and suburban areas, different health care organizations have
suddenly appeared
and health maintenance organization owned clinics. New tertiary hospitals with more modern
facilities were established. Physicians are not only part of the medical staff
have business interests, being stockholders of these health care organizations. World Citi
Medical Center like any health care organization, especially hospitals, have unique culture and
the impact of
internal and external factors affect the strategies that will be developed and
implemented.
Compared to its competitors, World Citi Medical Center has consistently shown low
numbers in the sales growth. The high cost, lack of modern facilities and shortage of medical
staff could have contributed to this. WCMC should offer competitive prices that are acceptable
to the target market while allowing the hospital to survive.
encouraged and invited to join the medical staff. Physicians are important customer base for
hospitals. Patients follow their doctors to other hospitals even if they don't like the hospital
1
just to avail of their services. The more doctors there are, the greater the chance of improving
bed occupancy census. Improving hospital facilities and equipments do not only attract patients
to be seen or confined at WCMC, but also attract doctors especially those with specialties to
be part
these hospitals. Doctors are getting more technologically inclined and are more
patients. They have effective marketing strategies which make patients patronize them. Now
that WCMC is lagging behind its competitors, it should invest in good and aggressive marketing
programs for the hospital.
Based on the External factor Evaluation (EFE) Matrix, WCMC has a total weighted
score of 2.4 . It is in a stable condition.
WCMC should take advantage of Opportunities such as
1. Increase in Health Consciousness
2. Increasing population of senior Citizens
3. Low inflation rate
4. Accessible internet
5. Enhanced partnership through Asean Integration 2015
6. Abundance of HMOs
WCMC should be able to respond and formulate strategies to reduce impact of these external
threats
1. New hospital in the periphery
2. Rapidly evolving technology
3. Conservative Gross Domestic Product
4. Augmented burden of taxation
5. Dynamic Government Regulations
2
CHAPTER 1. INTRODUCTION
World Citi Medical Center (WCMC) is a tertiary hospital located along 960 Aurora Blvd,
Cubao Quezon City. It is a 15 storey hospital building with a 276 bed capacity and
three accreditation by the Department of Health.
a level
beds are functional and only 6 floors are dedicated for in-patient rooms.
WCMC has 187 accredited physicians but only 165 are active. Only 98 (62%) are
holding clinics and 22 are visiting physicians. Non medical staff includes 142 nursing service
and 142 administrative staff.
The hospital is situated right across the intersection of Aurora Blvd and Anonas Street.
About ten meters from the main gate is a ramp which leads to the elevated hospital building.
The sign "EMERGENCY" in color red is prominently placed at the right side of the building
facade at the level of the 2nd floor. The first floor is about 15 feet from the ground level. A 711 convenience store is underneath the elevated first floor.
There are two main doors found in front of the hospital building. Entry to the hospital
lobby is through the left main door. Patients, doctors and visitors enter the hospital through this
main door. The entrance to the emergency room is through the right main door. Employees
enter through the basement doors. Basement 1 has the Cafeteria, Dietary, Central supply room,
housekeeping, stock room, laundry and security office. Half of the basement area is occupied
by Parking area for the Executives. Basement 2 is the Morgue, Engineering, Maintenance
offices, Carpentry and storage area for unused hospital equipments and junks.
Before entering the left main door, a small coffee shop is seen at the left side. Upon
entry, a boutique/convenience store can be seen at the right side. The stairway leading to the
basement and upper floors is just beside the boutique. Opposite the boutique is the outpatient concierge which is
4 meters
The
At the far
end of lobby, are the Philhealth, Billing and Cashier counters. Patients are provided seats near
these counters while waiting for their turns. Turning to your right immediately before these
4
counters will lead to a small hallway with the three elevators ( 2 elevators are opposite a 3rd
elevator). Another stairway covered by a swing door is
straight through the elevator hallway will lead one to the radiology section. Turning right from
the radiology will lead to the pharmacy and the back door of the emergency room. While turning
left from the elevator hallway will lead to the corridor leading to the Rehabilitation Medicine
Department.
The Emergency room is approximately 120 square meters. There is an emergency exit
door approximately 10 meters away and straight from the emergency room entrance. The
Pharmacy is located immediately to the left of the emergency room exit door. The Laboratory
is opposite the Pharmacy. The Radiology Department is beside the Laboratory.
from the Pharmacy is the elevator hallway.
Turning left
the walls to guide patients. There are closed circuit television (CCTV) cameras inside elevators
and along stairways.
The doctors' out-patient clinics together with the Women's Center, Eye Center, Urology
Center, Hope (Hema, Onco, Pedia, Elderly ) Center, Cardiac Laboratory are found on the
second floor. There are television monitors strategically located along the corridors of the
second floor to keep the patients entertained while waiting. The third floor is occupied by
executive, managers and corporate offices. The 4th floor is assigned to the Intensive Care Unit,
Operating Room-Delivery Room complex, Dialysis, Neonatal Intensive Care Unit. This floor also
has a door connecting to the school, the World Citi Colleges passing through their basketball
gymnasium. The suite rooms, main conference room, prayer room and a mini garden can be
found on the fifth floor. The 6th, 7th, 8th, 9th ,10 floors are the in-patient rooms. Half of the
9th floor are occupied by service rooms. The different departments occupy these rooms for
charity patients required
can be found
Management Inc, the company which handles the out patient clinics rentals and parking area is
also found on the 11th floor. The 12th to the 14th floor function like condotels. The wellness
center and gymnasium is at the 15th floor.
Significant information for this paper were primarily obtained through interviews with the
following informants:
1. Dr. Pepito Amores
4. Mr Norbert Barretto
Data were also culled from various business textbooks and publications, articles from
the internet and through telephone inquiry to gather consistent information especially on pricing
and service delivery. Financial Information were based on printed documents obtained from the
Securities and Exchange Commisssion.
In analyzing the current status of World Citi, the following evaluation tools were utilized:
1.
2.
3.
4.
5.
SWOT Matrix
Strategic Position and Action Evaluation Matrix (SPACE)
Internal-External Matrix
Grand Strategy Matrix
Quantitative Strategic Planning Matrix (QSPM)
World Citi Medical Center (WCMC), was formerly known as Quezon City Medical Center
and College (QCMCC).
Medical Center for Quezon City (MCQC). It started to operate a 50 bed hospital. MCQC later
changed its corporate name to Quezon City Medical Center and Colleges Inc.(QCMCC). The
School of Nursing was established as its first college which offered general nursing program. It
eventually offered other programs in the College of Arts and Sciences. The 50 bed hospital was
later expanded to a 100 bed capacity.
After 15 years of operation, QCMCC was on the brink of foreclosure.
In March 1986,
the Guico family from Pangasinan acquired ownership and management of the QCMCC. The
purchase was initially intended to be a real estate investment only. They would eventually
resell the property and make a profit out of it. Running a hospital and a nursing school was not
part of the plan. However,
Nobody was interested to buy the property. The Guicos thus had no alternative but to run the
business. When Mr. Guico was unexpectedly called to serve the government, Mrs. Arlyn Guico,
then 32 years old and with six children in tow, was left to manage the dilapidated institution.
Mrs. Guico introduced changes in the school and the hospital. The following years saw
the introduction of several additional health related course offerings in the school such as
Radiologic Technology, Rehabilitation, Pharmacy Medical Technology. Eventually in 1994, a 15
storey hospital building was constructed. The hospital was transformed to a 276 bed tertiary
medical center and equipped with hi- tech facilities.
In 2001,Quezon City Medical Center and Colleges Inc later changed its name to World
Citi Incorporated. Prior to the change in name, Quezon City Medical Center has always been
confused with another hospital the Quezon City General Hospital, a government hospital
located in Seminary Road Quezon City. World Citi Incorporated's twin institutions were also
renamed. The hospital division as World Citi Medical Center and the school was renamed as
World Citi Colleges.
World Citi Inc. acquired the ISO 9001:2000 Certification ( Quality Management System )
in 2001.
Subsequently, WCMC
obtained Environmental management systems (ISO 14001) and Occupational health and safety
10
Antipolo, Caloocan, Nueva Ecija and Binalonan, Pangasinan. The Guico family has also
developed other businesses such as Aviation, Resorts, Medical Transcription, Real Estate and
Food Business.
WCMC was voted as the Most Outstanding Center for Wellness and Medical Hospitality
in the Philippines by the Philippine Marketing Excellence Award in July 2005. On December
2005. World Citi Medical Center was awarded as the Outstanding Medical Center in the 2005
Global Excellence Award at the Ambassador Hotel in Shenzhen, China.
Residency training programs were later established to improve its services. The first
department to have an accredited Residency training program was the Department of Internal
Medicine in 2002.
Pediatrics followed. Department of Radiology started its residency training program 3 years
ago. Department of Surgery is preparing to be accredited 2 years from now.
11
We are committed to provide optimum holistic healthcare and wellness services to our
client to nurture, empower and improve the quality of life of our stakeholders and foster a
mutual beneficial relationship with our partners in the industry.
Credo
We believe in a Higher Call for which we exist and to which we respond,
as an organization of integrity in the pursuit of our goals,
Committed to fulfill our tasks and responsibilities with excellence;
Competent in our areas of expertise;
Truthful and honest in our dealing with everyone;
Working effectively as one; and
Respecting each others opinions and differences.
But these can only be possible by the grace and guidance of the Divine Providence.
12
COMPONENTS
Yes/No
Statement
CUSTOMERS
Yes
PRODUCTS AND
SERVICES
Yes
MARKET
Yes
TECHNOLOGY
No
Yes
PHILOSOPHY
Yes
Credo statement
SELF-CONCEPT
Yes
Yes
CONCERN FOR
EMPLOYEES
Yes
10
NATION BUILDING
No
REVISION
delete clients
The mission statement revealed the desire of WCMC to provide services to both the
sick and the healthy. Wellness services will be provided. There was no mention of technology
13
or means to attain their commitment to all the stakeholders. There was no mention of level of
competence that services will be delivered. The word holistic healthcare indicates that it takes
in consideration the person's total being which is body mind and spirit.By replacing holistic and
optimum with highest standard of healthcare, shows commitment to quality healthcare.
The Credo statement can be rephrased to make the message simple, easily
understandable yet still meaningful. The words Higher Call were replaced with Supreme Being.
14
COMPONENTS
Yes/No
No
FOCUSED CONCEPT
Is it concise enough yet
inspirational?
Is it aspirational?
Yes
NOBLE PURPOSE
Does it clearly answer the
question: What do we want to
become?
No
PLAUSBLE CHANCE OF
SUCCESS
Does it give clear indication as to
when it should be attained?
part of statement
REVISION
Personalized
customer
service
By 2020
The word high touch was used by John Naisbitt in his book High Tech/High Touch:
Technology and Our Search for Meaning which says that "The More high tech the more high
touch we desire. The message is that even with a technology- driven world we still appreciate
the personal touch and we still need personal interaction with the people we deal with in
business. The term high touch is concise but not readily understandable by customers. The
vision statement can therefore be interpreted as the desire of World Citi Medical Center to
become a
world class health and wellness provider without losing the personal touch or
service with dedication and personal touch. The vision statement did not mention time frame to
attain their vision.
15
72,689,734
16,768,100
9,181,204
4,898,532
3,730,261
2,806,432
2,678,455
2,243,854
2,149,485
2,096,774
1,937,797
1,838,964
1,531,282
1,358,263
16
Country/Region
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
72,689,734
1,304,554
1,259,201
868,346
853,539
822,149
748,450
685,434
611,726
579,680
525,863
524,806
522,349
514,965
492,783
489,089
428,322
420,167
402,340
378,148
371,339
366,060
336,701
312,434
295,744
291,567
277,043
274,027
272,067
267,329
255,199
The economy of the Philippines is the 40 th largest in the world according to the 2014
World Bank statistics and is also one of the emerging markets in the world. The Philippines is
considered as a newly industrialized country which has been transitioning from being one
based on agriculture to one based more on services and manufacturing. Goldman Sachs
estimates that by the year 2050, the Philippines will be the 14 th largest economy in the world,
Goldman Sachs also included the Philippines in its list of the next eleven economies. According
17
to HSBC, the Philippine economy will become the 16th largest economy in the world, 5th largest
economy in Asia and the largest economy in the Southeast Asian region by 2050. Inflation rate
of 3.7% (November 2014)and unemployment rate of 7.5% (January 2014) could not be taken as
negative indicators of economic growth.
mentioned as a major contributor to the GDP, the following data is encouraging considering that
the industry the World Citi is into involves services:
Table 4.
Services
Industry
Agriculture
54.4%
33.3%
12.3%
determines export status, employment, capital investment, etc. Healthcare segment provides
employment openings to many individuals directly associated with the healthcare sector or other
associated sectors related to the healthcare industry in some way or the other. Businesses
dealing with healthcare adds to the already existing economy by buying utility programs, paying
taxes and the like.
A portion of GDP can be reflected specifically in terms of health services utilization. The
total health expenditure is the sum of public and private health expenditure covering the
provision of health services (preventive and curative), family planning activities, nutrition
activities, and emergency aid designated for health. According to the World Bank, the health
expenditure expressed in percentage total of the GDP in the Philippines are as follows:
Philippines
Indonesia
Taiwan
Malaysia
Singapore
India
2010
2011
2012
4.2
2.9
3.8
4.0
4.1
3.7
4.4
2.9
4.1
3.8
4.2
3.9
4.6
3.0
3.9
3.9
4.7
4.0
In comparison with other Asian countries, the Philippines health expenditure is similar
showing an increasing trend every year. This data is a welcome development to the healthcare
industry since the populace in any given country within the region tend to spend more on health
maintenance annually.(source: World Bank Group IBRD IDA)
The term inflation originally referred to increases in the amount of money in circulation.
Nowadays, most economists use the term inflation to refer to rise in price level. Inflation,
therefore, is sustained increase in the general price level of goods and services in an economy
over a period of time. When the general price level rises, each unit of currency buys fewer
goods and services. As a consequence, there will be a reduction in the purchasing power per
unit
of money. Inflation rate measures the annualized percentage change in a general price
Month
2010
2011
2012
2013
January
3.9
4.0
4.0
3.1
February
3.9
4.7
2.7
3.4
March
3.9
4.9
2.6
3.2
April
4.0
4.7
3.0
2.6
May
3.9
4.9
3.0
2.6
June
3.6
5.2
2.9
2.7
July
3.7
4.9
3.2
2.5
August
4.1
4.6
3.8
2.1
September
3.8
4.7
3.7
2.7
October
3.3
5.2
3.2
2.9
November
3.7
4.7
2.8
3.3
December
3.6
4.2
3.0
4.1
Average
3.8
4.6
3.2
3.0
20
Given this scenario, price of medical care can increase also since prices of basic
commodities started to escalate once more. Hopefully, medical services will still be affordable to
the public so that business sustainability in the healthcare industry will be attainable.
4.1.2 Sociocultural
4.1.2.1 Ageing Population
On the socio-cultural aspect, health consciousness seemed to have been enhanced.
Awareness of problems and complications arising from certain diseases and illnesses can lead
21
one to be more cautious with regard to health preservation. Theres likewise an increasing
patronage of senior citizens. The Philippine law classify a person as senior citizen based on age
(60 years old and above). They are entitled to discounts in medicines, basic commodities,
health services and socio-recreational activities. Although discount privileges may mean a slash
on the gross income of the medical center, still, senior citizens are major clients and patrons of
health services obviously due to the propensity of this group to develop illnesses as part of the
aging process.
The succeeding chart will provide the total number of the population and actual number
of senior citizen based on actual NSO survey. This is one scenario where the fertility rate is
going down while the elderly population is constantly increasing.
1995
2000
2005
2007
2010
2015
Total
Number
of
Total
Number
Population
Senior Citizen
(Per Million)
68.62
76.5
84.21
88.57
90.46
99.01
(Per Million)
3.7
4.6
5.68
5.8
7.06
8.72
of
5.4
6.0
6.7
6.5
7.8
8.8
much welcome development in the hospital industry as more people will be expected to utilize
the services being offered in the medical centers.
issue and although there are still some recorded incidents of drug abuse, the number of drug
dependents has gradually decreased.
Cases of Dengue Fever, cardiovascular diseases, tuberculosis have constantly been on
the rise. However, most of these cases are properly attended to by the Philippine government.
(source: Alliance Worldwide Care). It is important to know these morbidities and mortalities so
that remedies can be instituted in a timely manner and allocation of budget to certain diseases
will be justified. On the side of the hospital, strategies can also be formulated based on data
available. Additionally, studies may be pursued especially in research oriented medical centers
on how to lower the incidence of certain illnesses.
disease and 75 patients die of TB every year. It is already an improvement as the country
ranked 7th in the past years, yet the statistics are still alarming. In fact, the country still ranks 8th
among the countries with incidences of Multi-Drug Resistant Tuberculosis.
7. Dengue Fever
As of 9 May 2009, a total of 62 deaths have been caused by dengue nationwide.
Bacolod City appeared to be the most affected area in the whole country, with eight deaths as of
September. This prompted the city council to pass a resolution declaring the city in calamity due
to dengue fever.
8. Chronic Lower Respiratory Diseases
Chronic Lower Respiratory Diseases include emphysema and chronic bronchitis.
Emphysema is characterized by damaged air sacs in the lungs making it hard for the patient to
breath. On the other hand, the lungs cells and linings become red and swollen when affected
with chronic bronchitis. These two diseases are all smoking-related and can mainly be
prevented by avoiding smoking or inhaling second-hand smoke.
9. Diabetes Mellitus
Diabetes Mellitus affects around 3 million Filipinos but only half of this population
actually know about it. Diabetes is a manageable disease but it still is the 9th cause of death in
the country since most diabetics discover it too late. Early identification is the key to preventing
deaths linked to the condition. A good exercise program and a balanced diet limits the risk of
death caused by diabetes.
Reference:
Mortality: Ten Leading (10) Causes Number and rate/100,000 Population Philippines 5-Year
Average (2000-2004) & 2005. Department of Health Republic of the Philippines. From
Wikipilipinas: The Hip 'n Free Philippine Encyclopedia
4.1.3 Technological
4.1.3.1 Accessible Internet
The internet is one of the greatest wonders that made a significant impact in a persons
life. Alongside the popularity of the WiFi is the rise of the social media like Facebook and
Twitter that can be used as portals for mileage. Technologically, the hospital and healthcare
industry became at par with other businesses and industries. Access to internet has become
vital to medical personnel for research and other studies and helps in alleviating boredom on the
part of the patients. The internet has become a powerful tool in marketing and promoting a
business enterprise because advertising is easier and faster, and web utilization provides wider
reach. Communication among stakeholders, suppliers, business partners and clients will not be
difficult. Visual appreciation of products and services can be readily accessible. Inquiries can
likewise be addressed quickly which could be a delight to clients.
4.1.3.2 Constantly Evolving Technology
Technological advances can be considered threat. Healthcare is one of those industries
that have become technologically dependent. Year after year, new and advanced medical
technologies are introduced and used, and old ones become obsolete and are thrown away.
Healthcare professionals including nurses and paramedical personnel are under the pressure to
learn how to utilize these technologies. Computer-based tools are becoming ubiquitous in many
healthcare activities and procedures as well as in the field of instruction and education of
healthcare professionals and workers. Learning how to manipulate these interactive
technologies is critical for everyone involved in healthcare delivery. This has a bearing in
managing a hospital. It is observed that well patronized tertiary hospitals are more financially
capable of adapting readily to changes in equipment upgrades like imaging modalities. Investing
on upgrades or even replacements can be a financial challenge to the organization.
26
4.1.4 Legal/Political
4.1.4.1 Expanded Senior Citizens Act
In early 2010, an Expanded Senior Citizens Act was passed to provide the elderly
additional benefits and privileges not included in the Senior Citizens Act of 1992. With this new
law, some 5 million senior citizens will receive a 20% discount and exemption from VAT on the
sale of goods and services (medicines, medical and dental fees, transport fares, services in
hotels and restaurants, admission fees in theaters and other places of leisure). The elderly will
be provided with free medical and dental service, diagnostic and laboratory fees in all
government facilities covered under a mandatory PhilHealth coverage (equivalent of the NHIF in
Kenya). A monthly stipend of P500 (US$ 12) will be availed and P1,500 (US$ 35) stipend for
indigents with additional free vaccination against the influenza virus and pneumococcal disease.
Included in the new benefits are a 5% discount on water bills (if consumption is less than
30 cubic meters a month) and electric bills (if consumption is less than 100 kilowatt-hours).
Educational assistance will be be equally extended to those who shall meet school admission
requirements. The law also orders the Department of Health, local government units and other
concerned organizations to institute a national health program for the elderly. It also establishes
an Office for Senior Citizens Affairs in all cities and municipalities, and a senior citizens ward in
every government hospital. Other enjoyments for the seniors include the Express Lane Privilege
in all private, commercial and government establishments; where in the absence thereof, priority
is given to them.
All one needs to enjoy these privileges at old age is an identification card - issued by the
city or municipal mayor / Office of Senior Citizens Affairs (OSCA) or of the village (Barangay)
captain of the place where the senior citizen resides; Passport and or other documents that
establish the senior citizen as a citizen of the Republic and who is at least 60 years old is
equally accepted. Other provisions in the original Act include the Establishment of Various InterAgency Monitoring and Coordinating Mechanism - at the national and regional level to
undertake the various functions for the interest of senior citizens. First-time violators of the law
face imprisonment of six months to two years and a fine ranging from P50,000 to P100,000
(US$1,170 to US$ 2,400 equivalent). For subsequent violations, the fine can go up to P200,000
(US$4,600 equivalent)and a prison term reaching six years.
27
28
There are existing guidelines in the planning and design of a hospital or health facility.
Owners are required to observe appropriate architectural practices, to meet prescribed
functional programs, and to conform to applicable codes as part of normal professional practice.
References shall be made to the following:
1. P. D. 1096 National Building Code of the Philippines and Its Implementing
Rules and Regulations
2. P. D. 1185 Fire Code of the Philippines and Its Implementing Rules and
Regulations
3. P. D. 856 Code on Sanitation of the Philippines and Its Implementing Rules and
Regulations
4. B. P. 344 Accessibility Law and Its Implementing Rules and Regulations
5. R. A. 1378 National Plumbing Code of the Philippines and Its Implementing
Rules and Regulations
6. R. A. 184 Philippine Electrical Code
7. Manual on Technical Guidelines for Hospitals and Health Facilities Planning and
Design. Department of Health, Manila. 1994
8. Signage Systems Manual for Hospitals and Offices. Department of Health,
Manila. 1994
9. Health Facilities Maintenance Manual. Department of Health, Manila. 1995
10. Manual on Hospital Waste Management. Department of Health, Manila. 1997
11. District Hospitals: Guidelines for Development. World Health Organization
Regional Publications, Western Pacific Series. 1992
12. Guidelines for Construction and Equipment of Hospital and Medical Facilities.
American Institute of Architects, Committee on Architecture for Health. 1992
13. De Chiara, Joseph. Time-Saver Standards for Building Types. McGraw-Hill Book
Company. 1980
29
All government health agencies and their personnel as well as other government
agencies shall use generic terminology or generic names in all transactions related to
purchasing, prescribing, dispensing and administering of drugs and medicines.
All medical, dental and veterinary practitioners, including private practitioners, shall write
prescriptions using the generic name. The brand name may be included if so desired.
4.1.5 Global
4.1.5.1 Asean Integration
In the pipeline, ASEAN integration this 2015 is thought of as probable feature that could
propel World Citi to greater heights since services & products will be made known
30
internationally. Hence, partnership with labor organizations can be developed. Medical tourism
with the hospital as accredited provider will furthermore make the healthcare business grow.
4.1.6 Environmental
4.1.6.1 Worsening Traffic Situation
Though beyond our control, a major concern of the city populace is traffic congestion.
Slow mobility can cause loss of clients especially in emergency situations as it will be
reasonable for a client to go instead to a nearer and more accessible medical center.
Consultations with MMDA must be done in order to clear thoroughfares leading to hospitals with
U-turns and crossings closer to the main entrance of the facility.
4.1.6.2 New Medical Center and Hospitals in the Area
Establishment of other businesses of similar category is a continuing threat.
For
example, soon to be opened is the Marikina Doctors Hospital, touted as another potential major
player in healthcare within the perimeter. With possible aggressive marketing of this hospital
once operational, market share of World Citi could be diminished.
4.1.6.3 Typhoon / Flooding
The Philippines is the most exposed country in the world to tropical cyclones. On an
annual time scale, activity is at minimum in May and increase steadily through June and spiking
from July to September, with August being the most active month for tropical cyclones in the
Philippines. Activity falls off in October.
The Philippine Atmospheric, Geophysical and Astronomical Services Administration
(PAGASA) releases tropical cyclone warnings in the form of Public Storm Warning Signals. An
area having a storm signal may be under:
PSWS #1 - Tropical cyclone winds of 30 km/h (19 mph) to 60 km/h (37 mph) are
expected within the next 36 hours. (Note: If a tropical cyclone forms very close to the
area, then a shorter lead time is seen on the warning bulletin.)
PSWS #2 - Tropical cyclone winds of 60 km/h (37 mph) to 100 km/h (62 mph) are
expected within the next 24 hours.
31
PSWS #3 - Tropical cyclone winds of 100 km/h (62 mph) to 185 km/h (115 mph) are
expected within the next 18 hours.
PSWS #4 - Tropical cyclone winds of greater than 185 km/h (115 mph) are expected
within 12 hours.
Classes for Preschool are canceled when Signal No. 1 is in effect. Elementary and High
School classes and below are cancelled under Signal No. 2 and classes for Colleges
and Universities and below are cancelled under Signal No. 3 and Signal No. 4.
In the hospital industry, this phenomenon has a bearing since certain diseases are more
prevalent during rainy season. During higher signal typhoons, flooding is a common occurrence
hence staff absenteeism may be observed. This is counterproductive to the hospitals operation.
4.2
(Figure 6)
Suppliers
Distributor
s
Organizati
on
Competitors
Customer
s
4.2.1 CUSTOMERS
1. Patient , relatives and friends of patients
2. Physicians
3. Health Care organizations
4. Third party payors-insurance companies and employers
32
5. Employees
Patients whose physician does not have privileges at the hospital of the patient 's choice
may change physician. For instance, a patient may choose WCMC
physician is from another hospital because WCMC is nearer his residence or place of work .
This would allow him to have his regular check up.
WCMC meet
customers.
Employees are also customers because they will also need healthcare services. Just
like other patients, they can recommend the hospital to their relatives and friends.
4.2.2 COMPETITORS
WCMC has several geographic competitors .
Distance
COMPETITOR HOSPITALS
from
1. Villarosa Hospital
2. V. Luna Hospital
WCMC
1.4 km
1.7 km
Location
Project 4, Quezon City
V. Luna Ave. Quezon City
33
2.2 km
2.2 km
3.3 km
3.6 km
5.0 km
5.1 km
5.3 km
5.3 km
5.6 km
6.0 km
Quezon City
Tanong , Marikina
Kamuning , Quezon City
North Ave, Quezon City
JP Rizal, Marikina, Quezon City
Sumulong Highway , Marikina
Quezon Boulevard, Quezon City
Marcos Highway, Marikina
E. Rodriguez, Quezon city
Anonas
Anonas
Anonas
P. Tuazon, Cubao 1.km,
Kamias Branch 2 km
Araneta complex , Cubao
Farmers Market Cubao
Gateway Mall, Araneta Cubao Quezon City
Laboratory
Pharmacy
Medical Supplies
Office supplies
Maintenance Supplies
Housekeeping supplies
Equipment/ Tools/ Furniture/Fixtures
Biomedical
Outsource supplier
- 60 suppliers
- 73 suppliers
- 17 suppliers
- 8 suppliers
- 6 suppliers
- 30 suppliers
- 7 suppliers
- 5 suppliers
34
The healthcare system in the Philippines can be considered to be at par with other
medical centers in the region. This is despite the fact that the medical facilities in the country
may not be as impressive as those found in high-end US or European hospitals. According to
reviews, the top Philippine hospitals include St. Lukes Medical Center in Quezon City and
Global City, Makati Medical Center, The Medical City in Ortigas and Asian Hospital because of
exponential patronage of patients and clients due to the excellent care accorded to them and
the modern modalities available in these hospitals. Doctors are not at all inferior to counterparts
overseas as medical practitioners in the Philippines are graduates from the top universities in
the country and some of them even had further studies and training abroad, mainly in the Unites
35
States. Additionally, there are doctors that have practiced medicine in the US before sharing
their expertise in the Philippines. Unfortunately, majority of these centers of excellence are
located in Metro Manila. In the provinces, regional hospitals readily cater to the medical needs
of the locals. The more affluent prefer to go to private hospitals.
5.1.1 Hospitals
Finding the right hospital in the Philippines is not too difficult as there are a number of
great options to choose from. The Philippines has both public and private healthcare institutions
that can cater to different segments on the society. Most of the government hospitals provide
quality healthcare in similar way private hospitals do. Although some people may have
misconceptions, most of them are unfounded. The main difference between public and private
hospitals are the facilities and technologies offered. Most of the public hospitals would not be
equipped to the same standard as the private ones. However, some of the best physicians are
serving in the government hospitals. Also, most Filipinos would seek advice from these
government hospitals because fees are not charged. Private hospitals are located in key cities
throughout the nation and quite a number are tertiary hospitals that have the latest in medical
technology. However, as one expects, private hospitals are more expensive.
Table 11. Comparative Table for World Citi Medical Center, Marikina Valley Medical Center
and Capitol Medical Center.
36
WCMC
Classification
PhilHealth Accreditation
Bed Capacity
Services Offered
1.Breast Care Center
2.Catherization Laboratory
3.Delivery Room
4.Department ofPathology
5.Dialysis Center
6.Ear,Nose andThroat
7.Electroencephalogram
8.Emergency Rm.
9.Endoscopy Unit
10.Eye Center
11.Gamma Camera
12.Heart Station
13.Intensive CareCenter
14.Laboratory
15.Lunar Bone Densitometry
16.Neonatal Intensive Care Unit
17.Nursery
18.OB-GynecologyUltrasound
Section
19.Operating Rm.
20.Out-PatientDepartment
21.Orthopedic Surgery
22.Pediatric Intensive Care Unit
23.Plastic and Cosmetic Surgery
Center
24.PulmonarySection
25.Radiology
Xray
Ultrasound
CT Scan
MRI
26.RehabilitationMedicine
27. Skin Center
28.Sleep Center
30.Breastfeeding Stations.
Private Rm.
Occupancy Rate
Private, Tertiary
Yes
276
MVMC
Private,
Tertiary
Yes
100
CMC
Private,
Tertiary
Yes
300
None
None
Yes
Yes
None
Yes
Yes
Yes
Yes
Yes
None
Yes
Yes
Yes
None
None
Yes
Yes
None
None
Yes
Yes
Yes
Yes
None
Yes
Yes
Yes
None
Yes
Yes
Yes
None
None
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
None
Yes
Yes
Yes
Yes
None
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
None
Yes
Yes
None
None
Yes
Yes
Yes
None
Yes
Yes
None
None
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
1554/day
1600/day
2000/day
40-55%
85-89%
95-99%
37
The healthcare industry is one of the few in the world right now with expansion seeming
likely to continue unabated. In 2013, after nine years, the Department of Health (DOH) lifted
Administrative order 2004-004, which restricted the establishment of new hospitals, in order to
address the maldistribution of hospital beds resulting in inaccessibility and inadequacy of the
hospital delivery. It was, however, observed that there was no significant increase of hospital
beds in rural areas. Private individuals and corporations were hesitant to establish hospitals in
most regions where market forces could not guarantee a reasonable return of investment.
With this revision, the private individuals and corporations who will establish new
hospitals will no longer be required anymore to secure a Certificate of Need (CONA). This led
to more new hospitals being built. World Citi Medical Center is a tertiary hospital with a level
four accreditation by the Department of Health, acquired by the Guico family in 1986. It is a 15storey facility with a 276 bed capacity. Located in a thickly populated area in Quezon City, it is
accessible to most types of public transportation, which makes it very convenient for patients. It
boosts of having modern medical technology with competent medical professionals. It also
offers wide array diagnostic procedures like pulmonary, cardiovascular, laboratory, ultrasound,
CT scan, mammography, and radiology tests. In addition, packages for executive check-up and
medical procedures are also available. The hospital, however, still lacks MRI and Nuclear
Medicine facilities.
The inclusion of a school, World Citi Colleges, the courses of which are mostly in the
paramedical field, is a welcome addition to the hospital. It has assured the hospital of acquiring
well trained personnel. Because of World Citis strategic location, a number of smaller diagnostic
centers have sprouted just a few kilometers away, some of which are even just a walking
distance. These facilities though limited to the basic diagnostic studies, have lower prices,
which has greatly reduced World Citis revenues. Surrounding population is generally from the
middle class because of the hospitals high prices.
Capitol Medical Center was built and inaugurated on March 19, 1970, founded by Dr.
Thelma N. Clemente, Mr. Luis C. Clemente and a handful of her contemporaries in the medical
profession. From an initial 100 patient bed capacity in 1970, it has expanded to 300 beds after
almost 45 years of operation. It has continuously sustained programs for the upgrading of its
facilities to keep abreast with the latest developments in medical and health technology. Capitol
Medical Center is located in the heart of Quezon City, and is accessible via public
transportation. The location is less congested with more affluent families in the surrounding
area. Like World Citi Medical Center, Capitol Medical Center has a school, though with a lesser
number of courses. The hospital is equipped with advanced and modern technology including
digital mammography, MRI and nuclear medicine facilities all of which are not available at
World Citi Medical Center.
Marikina Valley Medical Center, is a 7-storey twin-structure edifice designed along
Sumulong Highway corner Aguinaldo St., Barangay Sto. Nino, Marikina. It is smaller than World
Citi Medical Center and Capitol Medical Center with only a 100 bed capacity. Like, World Citi
Medical Center, the location is thickly populated, but with lower cost of living. More cash paying
patients are catered in Marikina Valley Medical Center when compared with both World Citi and
Capitol Medical Centers.
competitive with other hospitals and facilities in the area, facilities are less modern and complete
when compared with World Citi and Capitol Medical Centers.
STRON
G
39
HIGH
STRON
MODERAT
E
WEA
K
Two of the most likely competitors are Marikina Valley Medical Center and Capitol
Medical Center. Facilities of both WCC and Marikina Valley Medical Center are almost the
same, whereas, Capitol Medical Center is more advanced with the presence of modern
technology and facilities. Capitol Medical Center, like WCC, also has a school for paramedical
studies.
Aside from hospitals, there are likewise many small multi specialty clinics and diagnostic
centers in the vicinity. The smaller medical facilities offer low prices with regards to the basic
40
ancillary procedures such as basic laboratory tests, x-rays, etc. The diagnostic clinics low
overhead rates make this possible. WCC loses a substantial amount particularly in cash paying
patients who prefer to go to the less expensive centers.
Healthcare is not greatly affected by buyer power. This is true because people will get
sick whether the economy is doing well or not, whether the cost of medicine and consultation
fees are high or low. Most people will consume healthcare if there is a need to do so. Patients,
particularly with healthcards usually seek prompt medical attention at the most accessible
facility. Cash paying patients usually wait till money is available. Even families with low income
41
are now able to seek medical attention with Philhealth cards and with the charity or social
services provided by the hospitals.
Buyer power is, however, evident in the fact that due to the presence of many healthcare
facilities, people now have the power to choose the hospital. Hence World Citi Medical Center
has to try its best to make the patients want to go back to the hospital because they are happy
with the services extended to them and contented with the medical attention afforded to them by
their attending physicians. These contented patients will further increase the revenue of the
hospital by referring other patients.
Hospital suppliers may either be in the form of medical equipments or in the form of
hospital personnel. There is a large number of suppliers for most hospital commodities. These
suppliers offer attractive packages and payment schemes.
With regard to the hospital personnel, World Citi Medical Centers strategic location is
reason enough to make physicians want to join their medical team. The initial capital needed to
be a part of the hospital is small when compared with the stocks that are being sold in the newer
hospitals.
If the hospital will acquire new and state of the art medical equipments, more quality and
trained physicians and medical personnel will want to work with them.
Training programs for residency, nursing, etc are present, also a possible source of
medical professionals. World Citi Medical Center has a school for many paramedical courses,
which may provide as a pool for their medical manpower needs.
equipments and presence of medical professionals will greatly increase hospital revenue.
Aggressive marketing strategies and attractive healthcare packages should also be considered.
(Table 12)
Weight
Rating
Weighted
Score
0.20
0.60
0.15
0.45
0.10
0.20
T1
Accessible Internet
0.10
0.20
P1
0.05
0.10
0.05
0.10
L2
Threats
43
Env1
T1
E1
L1
L2
Env2
TOTAL
0.15
0.45
0.05
0.10
0.05
0.05
0.05
0.10
0.03
0.03
0.02
0.02
1.0
2.4
5.4.1 Opportunities
1. Increase in Health Consciousness
Awareness of problems and complications arising from certain diseases and
illnesses can lead one to be more cautious with regard to health preservation. This item
is given a weight of 0.20 and a rating of 3 since the health industry is dependent on the
receptiveness of the population in embracing available options to maintain excellent
health.
2. Increasing population of senior citizen
This segment of the society is a major market in the hospital industry because
the retirees and elderly require more diagnostic tests and prolonged treatment when
illness strikes. In terms of utilization of various investigative and treatment modalities,
they are the prime beneficiaries of such offerings. Given this, a weight of 0.15 and a
rating of 3 are assigned.
3. Low Inflation Rate
44
Inflation rate is a good indicator of dynamics in price index. The inflation rate has
constantly improved from 3.7% in November 2014, its lately been at 2.4% as of January
2015. This is a lot better compared to the average of 8.88%. Since this is being seen as
a a great opportunity to earn more, a weight of 0.10 and a rating of 2 have been
assigned.
4. Accessible Internet
The internet has become an indispensable collaborator in any business
enterprise because of the unquestionable benefits it can provide for the growth of an
industry. People nowadays tend to gravitate to a place with good internet capability
because of the convenience it can give when a busy person has to multitask doing
business on the side while not actually in the workplace. An example of this is Starbucks.
In the health industry, this value added service is likewise a great help to an executive
who has to watch over a project or monitor his staff while seeking medical attention for
his illness or merely having a health check up. Cognizant of this opportunity, a weight of
0.10 and rating of 2 are allotted.
5. Enhanced Partnership through Asean Integration
In any business venture, it is always refreshing and inspiring to aim for
regionalization and better yet, globalization. Expanding beyond the confines of the usual
and ordinary will definitely add more revenues because of the advantage of linking and
networking. Through the right channels, referrals can be exponential translating to
skyrocketing sales. Even though this is an exciting project, the logistics may be
prohibitive hence a weight of 0.05 was given with a rating of 2.
6. Abundance of HMOs
Without a doubt, a hospital needs constant influx of clients through the HMOs.
Since the trend of our society is to secure any form of health insurance for their health
security, the management has capitalized on this opportunity by accepting all the
insurance companies (HMO) who want to be affiliated. So far, all the insurance
companies have never failed to pay their dues to the hospital. This is an existing
arrangement already but partnership needs to be enhanced, thus the management
needs to maintain this. In this aspect, a weight of 0.05 and rating of 2 were given.
45
5.4.2 Threats
1. New Hospital in the Periphery
As in other industries, competition or rivalry becomes a part of the game. The
more superior or stronger ones and those who can respond or adapt well with the
changing environment are expected to emerge as winners. The Marikina Doctors
Hospital is being seen as a formidable competitor since similar services will be offered in
close proximity to World Citi. With this unpreventable scenario, this threat is given a
weight of 0.15 with a rating of 3.
2. Rapidly Evolving Technology
As they say, innovate or evaporate. Technological advancements should always
be embraced otherwise others will take over. Efforts to withstand competition through
modernization can be costly requiring huge capital expenses. But without a doubt, World
Citi needs to catch up with the race. With the anticipation that reasonable investment on
upgrades should be undertaken, a weight of 0.05 with a rating of 2 is just apt.
3. Conservative Gross Domestic Product (GDP)
The GDP started to decline mid of 2013 to early 2014 (7.9 to 7.0 to 6.3 and
down to 5.6). Despite low production and with lower income of the average Filipino
family, still, emphasizing the need for health maintenance can help further reduce cost of
hospitalization when afflicted with full blown illness. But then priorities in budget can be a
hindrance to this advocacy. In this item, a weight of 0.05 and a rating of 1 is given.
4. Augmented Burden of Taxation
With every change in leadership, laws, rules and regulations are expected to
conform with the directions set forth by the government. Building requirements need to
be complied upon. Also, some laws are appreciated to be pro-poor like that of the illegal
hospital detention. This is regarded as not favorable to hospital owners, but again, we
have to abide. Therefore, a weight of 0.03 and a rating of 1 is given.
Although World Citi has very good location considering that is accessible through
both private and public transportation systems, a factor that could hinder preferential
patronage especially in emergency situations is traffic condition. Theres very little that
can be done but first and foremost is dialogue with MMDA so that convenient
passageways can be created to serve patients. This concern is given a weight of 0.02
and a rating of 1.
47
With the increasing pace of changing external environment, the competitors who are
more strategic, who can readily respond and adopt well usually emerge as the winners.
World Cit Medical Center can minimize the weaknesses and threats by following the
newest trends in the business and by acquiring the latest technological changes.
The three hospitals chosen for comparison are Capitol Medical Center, Marikina Valley
Medical Center and World Citi Medical Center because they have similar clientele covering
those mainly from the middle class to upper middle class social strata. All have hotel ambience.
World Citi and Capitol Medical Center have paramedical schools and residency training
programs. Marikina Valley and Capitol Medical Center are in close proximity to World Citi within
5.3km. They offer almost same health and wellness services. They are all situated in an
accessible location.
5.6.1 Capitol Medical Center
Capitol Medical Center has endeavored to make itself synonymous with excellence in
total quality healthcare delivery. Competent doctors and dedicated staff have put their heart and
soul in caring for the patients. CMC came into the Philippine health community at the dawn of
48
revolutionary seventies the martial law years. It was founded by Dr Thelma N. Clemente, Mr.
Luis C. Clemente and a handful of contemporaries in the medical profession. From an initial 100
patient bed capacity in 1970, it has expanded to 300 beds after years of operation. An
outstanding feature of the institutions operation is the continuing sustained program for the
upgrading of its facilities to keep abreast with the latest developments in medical and health
technology, hence, allowing the highest degree of sophistication and modernity in its services.
In 2004, the Capitol Medical Center Colleges was established offering one
baccalaureate degree, Bachelor of Science in
Orthopedic Center, the San Lazaro Hospital and the National Center for Mental Health.
of ABSCBN in the reality show Pinoy Big Brother a very good advertisement indeed for the
medical center, boosting its position in the healthcare industry.
World Citi may be trailing second with its hotel like concept then followed by Marikina
Valley Medical Center. From the tradition of an excellent healthcare provider with distinctive
hospitality, World Citi Medical Center dedicates itself in providing optimum, holistic healthcare
and wellness services to its patients and clients. Rated as a tertiary hospital with 276 bed
capacity, World Citi Medical Center is one of the leading healthcare providers in the country. It
encompasses the preventive, curative and rehabilitative facets of maintaining ones physical
and psychological welfare. The hospital has the following clinical departments, all of which have
modern and cutting-edge facilities:
Internal Medicine
Surgery
Obstetrics and Gynecology
Pediatrics
Ophthalmology
Otolaryngology
Radiology
Anesthesia
Rehabilitation Medicine and Physical Therapy
Pathology and Clinical Laboratory
Dentistry and Oral Surgery
ER and OPD
50
Marikina Valley
1,600
420
425
367.60
304.50
304.50
304.50
262
1,207.50
51
Commission). As to occupancy rate, Capitol Medical Center has 95-99%, Marikina Valley has
85-89%, World Citi trails behind with only 40-45%. It was shared to the authors by insiders that
Capitol Medical Center gives 2% incentive to top performing physicians aside from dividends
due for stockholders. Marikina Valley provides incentives in the form of annual trips. There are
sentiments relayed by doctors of World Citi that only the department chairmen, training officers
and executives together with top 10 contributing physicians are the only ones given incentives.
These strategies are seen to be effective in enticing medical staff members to patronize the
medical centers that they are connected with. An impression that doctors are valuable partners
and allies in the industry is indeed well conveyed through these programs. Again, location,
services and image are factors in market share. Because of this advantage, Capitol Medical
Center has more capitalization funds, hence, more capable in delving into major projects like
expansion and product development. It is rather difficult for World Citi to catch up at present
because of this downside. In fact, acquisition of MRI is quite not easy for World Citi.
52
5.7.3.7 Innovativeness
Being abreast with constant change is critical in strategic management as resistance to
adapt and adjust to circumstances would spell failure in any business venture. The existence of
a paramedical college in World Citi is an advantage as this can be interpreted that there is a
thrust for education, research and training. World Citi Medical Center also offers wide array of
diagnostic procedures like pulmonary, cardiovascular, laboratory, ultrasound, CT scan,
mammography and other radiologic tests. In addition, packages for executive check up and
medical procedures are also available. It is also unique and outstanding because it is the first
and only Medical Hotel in the Philippines. This pioneering and revolutionary concept combines
hygienic aesthetics of hospital interiors with the luxurious and relaxing ambience of first class
hotels, complete with the top-of-the-line amenities at price-friendly rates. Showcasing 24 deluxe
furnished suites with panoramic views of the 14th floor, World Citi Medical Center Hotel caters to
guests and family members of the patient coming from abroad and far provinces. This makes
World Citi Medical Center a hub for wellness and medical hospitality rolled into one.
In the aspect of education, Capitol Medical Center shares the vision of World Citi as it
has also a college offering Nursing and Radiologic Technology courses. An academic medical
center is always regarded as more updated in know-how, skills and technology since it has to
keep up with the requirements of governing bodies concerning accreditation as an educational
institute and likewise as a medical facility primarily. The downside, however, is the perception
that patients are regarded as educational materials for professional growth of trainees.
53
Marikina Valley has similar concept as that of World Citi adopting a medical hotel
ambience in a suburban setting. This concept distinctively differentiates the Marikina Valley
Medical Center from other hospitals in the area.
54
Critical Success
Factors
Service Quality and
Performance
Weight
Marikina Valley
Rating
Score
Capitol Med
Rating
Score
World Citi
Rating
Score
0.2
0.3
0.6
0.4
Market Share
0.15
0.3
0.45
0.15
Financial Position
0.15
0.6
0.45
0.30
Innovativeness
0.12
0.24
0.36
0.24
Management Depth
0.1
0.3
0.3
0.2
Strategic Location
0.08
0.24
0.16
0.24
Advertising and
Promotions
0.07
0.14
0.21
0.14
Customer
Loyalty/Service
0.06
0.18
0.12
0.06
Price
Competitiveness
0.04
0.08
0.12
0.04
Brand Power
0.03
0.06
0.09
0.06
TOTAL
1.0
2.44
2.86
1.83
6.1.1 Strategy
The main strategy of World Citi Medical Center is positioning itself as a first
and only
medical hotel in the Philippines. Because of this concept, the hospital provided luxurious and
relaxing ambiance like that of a first class hotel combined with hygienic aesthetics of hospital
interiors with top of the line amenities at competitive price.
Medical Director and Medical Affairs. Assistant Vice President for Hospital Operations
and
Corporate affairs of the hospital. The Office of International Standards and Corporate Affairs for
hospital are additions to the new organizational structure. These 2 new offices are still in the
formative phase.
implementing guidelines and policies for the planned international accreditation in the next 5
years.
The Medical Director has two Assistant Medical Directors, the Assistant Medical Director
for professional staff services and the other is for patient and clinical services.
Assistant Vice President for Hospital Operations is directly responsible for nursing
services, ancillary services and facilities and management services.
Corporate Affairs Services handle both the school and hospital affairs as well as other
business ventures of the family. There was no Corporate Affairs for Hospital Office in the
previous organizational structure.
57
MANCOM
PRESIDENT
CORPORATE
SERVICES
Clinical
Finance
Patient Support
Services
Services
Nursing
Services
Facilities
Management
HRD
Sales and
marketing
Assistant
Director for
Professional
Staff
Services
Assistant
Director for
Clinical
Services and
Patient Care
ITSD
Medical
Staff
Clinical
Department
s
PSMD
Research
and
Developme
nt
Ethics/Pe
er
Committe
Medical
Consultants
Medical
Committees
Special
Services
Men's
Wellness
Center
Women's
Wellness
Center
HOPE
Center
Affiliations
Training
Residents
Dialysis
Center
Therapeuti
c Services
Dietary
Pharma
cy
Social
Servic
e
Diagnostics
Services
Laborato
ry
Medic
al
record
Radiolog
y
Securi
ty
CSR/CS
SR
CSS
Cardiovasc
ular
Laboratory
Rehab
Medicin
e
Pulmo
Services
Busine
ss
Office
Bldg
mainte
nance
General
engineerin
g
House
keeping
Clinical
Engine
e
ring
devices
Biome
dical
Patient
Care
Servic
es
Training
and
Research
Clinical
Ward
Man
power
Develop
ment
OR/DR/
LR
ICU
Nursing
Research
NICU
Industrial
Medicine
Admitting
Section
ER
58
6.1.4 Systems
inventories, purchases,
supplies while Philhealth Information System simplifies Philhealth related data. Electronic
Medical Records are used in the out patient doctors offices.
Managers can have access to the data concerning their respective units only. They
can request for access through a password. There is a regular update of data in all the all the
information system.
59
All data are backed up. Corporate IT director is the head of the Information Technology
department .
The unit provides support services for all IT concerns. It also provides training
6.1.5 Style
The management style should depend upon the situation that an organization is facing.
The medical environment is fast changing, hence, it is neither practical nor economical to stick
to only one style of management. Transactional leadership is practiced by the CEO/ President of
the organization. Due to its compact nature, the transactional style is the preferred style in
WCMC, giving more power and authority to the President. Because of the track record of its
leader, personnel are more inclined to follow the orders of the CEO.
The transactional style of leadership is, however, viewed as insufficient in developing the
maximum leadership potential. With the changes planned by the hospital administration, it is
now more geared towards the practice of transformational leadership. Aside from assuring a
smooth flow of operations, the owners of the hospital are now focusing on motivation and
collaboration with employees at different levels of the organization to accomplish change for the
better.
6.1.6 Staffing
World Citi Medical Center utilizes the newspaper ads as well as web based job listing
sites such as job street and posts in its web site for recruitment of needed personnel. A big bulk
of their staff, however, come from their schools, particularly their graduates from Nursing and
Radiologic Technology.
Staffing for nursing is tedious and the applicant has to undergo a series of tests and
trainings in order to be hired. They start as trainees for about 7 weeks, paying the hospital a
small fee inclusive of 2 sets of uniforms and medical supplies that they will need. After the
training period, they are ranked and evaluated. If there is an opening, they are hired on a
60
contractual basis for 3 months. If none, they become part of the manpower pool. Nurses are
then re-evaluated after 5 months. Because of the barriers presented to nursing applicants, the
hospital has a need for more nurses.
Other hospital staff like those in the administrative staff, laboratory, pharmacy etc., are
given the usual pre-employment test after which they work for a probationary period of 5
months. If evaluation is favorable, they are advanced to a permanent status.
Interview with
some administrative personnel likewise show that they are understaffed. Many are forced to
multi task and unable to deliver quality work output due to many other duties related to other
business corporations of the owners. Benefits are few. Aside from the mandatory SSS and
Pag-Ibig contributions, the staff of World Citi Medical Center only get a 25% discount on the
gross total hospital bill when availed of. The immediate relatives get 20%. No other benefits
such as health insurance are given. Salary increase is likewise limited though yearly evaluations
are done. Increase is on the first, third and fifth year of employment.
Prior to being accepted into the hospital, the physicians are required to submit their
resume with copies of their certificates of specialization which are reviewed by the credentialing
committee upon recommendation of their department heads.
The rest of the hospital staff such as the orderlies, janitors, security personnel and
respiratory technicians are outsourced.
6.1.7 Skills
When hired, the employee is required to attend the orientation program. They are
likewise encouraged to join other training programs that will help improve their skills and
competencies as required by their jobs. The nursing training program includes the following:
basic intravenous therapy, intravenous therapy update, basic competency program for nurses,
basic life support (in house),and staff development program. The medical staff are active in their
respective specialty societies. Continuing update in their basic and advance cardiac life support
certification is required every two years.
61
0.14
WCMC
CMC
2012 2013
2011
2012
PROFITABILITY
0.14 00.15 0.31
0.30
2013
2011
MVMC
2012
2013
0.29
0.21
0.22
0.27
0.04
0.04
0.05
0.10
0.10
0.09
0.03
0.04
0.04
0.03
0.03
0.03
0.06
0.06
0.06
0.02
0.03
0.03
1.03
1.09
1.24
1.21
Current Ratio
1.36
1.07
LIQUIDITY
1.21
0.91
0.90
Quick Ratio
1.06
0.70
0.66
0.73
0.87
1.02
1.16
1.12
Inventory
turnover
Fixed assets
turnover
Total assets
turnover
Ave. collection
period
18.18
14.24
ACTIVITY
14.84 22.24 16.68
21.86
31.80
54.93
39.09
0.69
0.73
0.79
1.21
1.16
1.01
1.93
2.18
2.34
0.59
0.63
0.64
0.87
0.84
0.78
1.23
1.33
1.29
19.97
23.65
23.50
50.94
49.26
46.09
36.89
32.60
32.59
31%
47%
46%
49%
0.79
Debt-to-total
assets ratio
Debt-to-equity
ratio
35%
20%
LEVERAGE
18%
37%
37%
53%
25%
22%
59%
45%
90%
85%
97%
Sales
1%
1%
GROWTH RATE
2%
4%
4%
2%
47%
13%
12%
Net income
26%
17%
8%
-5 %
90%
44%
39%
59%
14%
11%
62
Table15. Financial Ratios showing the three-year trends of World Citi Medical Center
(WCMC), Capitol Medical Center (CMC) and Marikina Valley Medical Center (MVMC).
FINANCIAL RATIOS
Gross profit
margin
Operating profit
margin
Net profit margin
WC
2011
CMC
MV
WC
2013
CMC
MV
0.31
2012
MV
WC
CMC
PROFITABILITY
0.21
0.14
0.30
0.14
0.22
00.15
0.29
0.27
0.04
0.10
0.03
0.04
0.10
0.04
0.05
0.09
0.04
0.03
0.06
0.02
0.03
0.06
0.03
0.03
0.06
0.03
1.24
1.21
1.03
1.21
Current Ratio
1.36
0.91
LIQUIDITY
1.09
1.07
0.90
Quick Ratio
1.06
0.79
1.02
0.73
1.16
0.66
0.87
1.12
Inventory
turnover
Fixed assets
turnover
Total assets
turnover
Average
collection period
18.18
22.24
ACTIVITY
31.80 14.24 16.68
54.93
14.84
21.86
39.09
0.69
1.21
1.93
0.73
1.16
2.18
0.79
1.01
2.34
0.59
0.87
1.23
0.63
0.84
1.33
0.64
0.78
1.29
19.97
50.94
36.89
23.65
49.26
32.60
23.50
46.09
32.59
Debt-to-totalassets ratio
Debt-to-equity
ratio
35%
37%
LEVERAGE
47%
20%
37%
46%
18%
31%
49%
53%
59%
90%
59%
85%
22%
45%
97%
Sales
1%
4%
GROWTH RATE
47%
1%
4%
13%
2%
2%
12%
Net income
26%
14%
90%
44%
8%
- 5%
39%
0.70
25%
17%
11%
Table 16. Financial Ratios comparing World Citi Medical Center (WCMC), Capitol
Medical Center (CMC) and Marikina Valley Medical Center (MVMC) for each year 2011
2013.
63
Financial Ratios are the mathematical expressions of the financial health of an organization.
Several formulas were applied to quantitatively assess the financial status of World Citi Medical
Center in comparison with its perceived competitors namely Capitol Medical Center and
Marikina Valley Medical Center. The data used were based on the financial statements from
2011 to 2013 submitted by the three hospitals to the Securities and Exchange Commission.
6.1.8.1 PROFITABILITY (Table 17)
PROFITABILITY
RATIOS
Gross profit
margin
Operating profit
margin
Net profit margin
PROFITABILITY
RATIOS
Gross profit
margin
Operating profit
margin
Net profit margin
WCMC
2011 2012 2013
0.14
0.14 00.15
2011
0.31
CMC
2012
0.30
2011
0.21
MVMC
2012
0.22
2013
0.29
2013
0.27
0.04
0.04
0.05
0.10
0.10
0.09
0.03
0.04
0.04
0.03
0.03
0.03
0.06
0.06
0.06
0.02
0.03
0.03
WC
0.14
2011
CMC
0.31
MV
0.21
WC
0.14
2012
CMC
0.30
MV
0.22
WC
00.15
2013
CMC
0.29
MV
0.27
0.04
0.10
0.03
0.04
0.10
0.04
0.05
0.09
0.04
0.03
0.06
0.02
0.03
0.06
0.03
0.03
0.06
0.03
In 2011, the gross profit margin is 0.14, which remained the same in 2012, and a very minimal
increase (0.14 to 0.15) in 2013. This may indicate poor purchasing efforts, meaning not getting
good prices for materials. This may also be due to poor inventory control or poor product mix.
64
This indicates the high costs of expenses for its services, or low prices of its services and goods
but still with low sales, for which it may need to increase prices of its services and goods while
maintaining competitiveness, coupled with good marketing strategy. While World Citi Medical
Center showed a slight increase in the three-year trend, Capitol Medical Center had a high
gross profit margin ratio of 0.31 in 2011 (more than double that of World Citi Medical Center) but
showed a gradual decrease in the gross profit margin trend to 0.29 by the year 2013. Marikina
Valley Medical Center has a higher gross profit margin of 0.21 in 2011 compared to World Citi
Medical Center with a remarkable increase in 2013 to 0.27.
Citi Medical Center performed poorly in terms of gross profit margin as compared to Capitol
Medical Center and Marikina Valley Medical Center.
World Citi Medical Centers operating profit margin is also low indicating poor operating
efficiency. The ratio remained low for three years, being stable at 0.04 from 2011 to 2012 with a
slight increase in 2013 to 0.05 (same trend observed with gross profit margin).
This means
that the fixed costs is high in relation to its sales. This indicates that World Citi Medical Center
has difficulty reducing its fixed expenses in the production of services and sales, which may
include high cost of marketing with low efficiency.
operating profit margin of 0.10 in 2011 (twice that of World Citi Medical Center) with slight
decrease to 0.90 after two years. Capitol Medical Centers operating profit margin in relation to
its gross profit margin shows it has higher fixed costs or operating expenses. Marikina Valley
Medical Center has a lower operating profit margin of 0.03 in 2011, which increased slightly to
0.04 in the next two years. For the three-year period, World Citi Medical Center performed
almost the same way as Marikina Valley Medical Center.
The net profit margin of World Citi Medical Center is very low and remained the same in
three years at 0.03. This may indicate poor pricing policies and product efficiency. This means
that the prices of services and goods may be low without good marketing, improvement in sales
and delivery of services. This margin is low compared to Capitol Medical Center with 0.06, but
the same with Marikina Valley Medical Center. The trend for the three hospitals is the same,
remaining stable for the three-year period.
65
WCMC
2011 2012 2013
1.36
1.07
1.21
2011
0.91
CMC
2012
0.90
Quick Ratio
1.06
0.70
LIQUIDITY
RATIOS
Current Ratio
WC
1.36
Quick Ratio
1.06
2011
1.09
MVMC
2012
1.24
2013
1.03
2013
1.21
0.66
0.79
0.73
0.87
1.02
1.16
1.12
2011
CMC
0.91
MV
1.09
WC
1.07
2012
CMC
0.90
MV
1.24
WC
1.21
2013
CMC
1.03
MV
1.21
0.79
1.02
0.70
0.73
1.16
0.66
0.87
1.12
Liquidity refers to the companys ability to pay off its short-terms debts obligations. 2 In
2011, the current ratio of World Citi Medical Center is 1.36, meaning for every Php1.00 the
company owes, it has Php1.36 of current assets with which to pay it off. This value dipped
down to 1.07 in 2012 and then recovered to 1.21 in 2013. These indicate the good position of
the Center to cover its short-term debts or obligations. The values were higher than that of
Capitol Medical Center with a current ratio of 0.91 in 2011, which slightly increased to 1.03 by
the year 2013. On the other hand, Marikina Valley Medical Cent current ratio of 1.09 in 2011
when compared to World Citi Medical Center. This increased to 1.24 in 2012 and later went
down to 1.21 in 2013 (same value as World Citi Medical Center). Although World Citi Medical
Centers current ratio in 2011 is highest among the three medical centers, it showed a
downward trend as compared to Capitol Medical Center and Marikina Valley Medical Center
which both showed improvement in 2013. The current ratios of World Citi Medical Center in
three years showed fairly good values in that it has maintained the values above 1.0.
The quick ratio helps us determine whether the company can pay off all its debts using its most
liquid (cash or near cash) assets. For World Citi Medical Center, this is low with a downward
trend in three years. In 2011, the quick ratio was 1.06, but went down in 2012 to
0.70, with a further decline in 2013 to 0.66. This indicates the low level of extremely liquid
assets thus reflecting the poor capability of World Citi Medical Center to satisfy its immediate
short-term obligations. The quick ratios of Capitol Medical Center and Marikina Valley Medical
Center were both lower in 2011. Both centers showed increase in ratios by the year 2013. Even
though World Citi Medical Center has the highest quick ratio in 2011 among the three centers, it
has the lowest ratio by the year 2013.
ACTIVITY
RATIOS
Fixed assets
turnover
Total assets
turnover
Average
collection period
2011
0.69
WCMC
2012 2013
0.73
0.79
2011
1.21
CMC
2012
1.16
2013
1.01
2011
1.93
MVMC
2012
2.18
2013
2.34
0.59
0.63
0.64
0.87
0.84
0.78
1.23
1.33
1.29
19.97
23.65
23.50
50.94
49.26
46.09
36.89
32.60
32.59
WC
0.69
2011
CMC
1.21
MV
1.93
WC
0.73
2012
CMC
1.16
MV
2.18
WC
0.79
2013
CMC
1.01
MV
2.34
0.59
0.87
1.23
0.63
0.84
1.33
0.64
0.78
1.29
19.97
50.94
36.89
23.65
49.26
32.60
23.50
46.09
32.59
67
Activity ratios assess how effectively a company is able to generate revenue in the form
of cash and sales based on its asset, liability and capital share accounts.3 The fixed asset
turnover ratio measures the amount of sales the hospital generates from every peso of its fixed
assets. This is very low in 2011 (0.69) for World Citi Medical Center with an increasing trend in
the next two years (went up to 0.73 in 2012, and 0.79 in 2013). Capitol Medical Center has a
higher fixed assets turnover ratio of 1.21 in 2011, with a decreasing trend in 2012 and 2013
(1.16 and 1.01 respectively).
turnover ratio (1.93) in 2011 with increasing trend to 2.34 in 2013. Although World Citi Medical
Center has the lowest fixed assets ratio among the three hospitals from 2011 to 2013, it showed
improvement in the three-year duration, like Marikina Valley Medical Center.
The total assets turnover ratio of World Citi Medical Center is low at 0.59 in 2011 and increased
slightly to 0.64 in 2013. This is the same pattern noted in the fixed assets turnover ratio for
three years. This indicates the hospitals low productivity or low efficiency in the utilization of its
assets to generate sales. Although the total assets turnover ratios of Capitol Medical Center
showed a decreasing trend from 2011 to 2013, it remained slightly higher than World Citi
Medical Center throughout the three-year period. The total assets turnover ratio of Marikina
Valley Medical Center is the highest among the three hospitals in 2011 (1.23) with an increase
to 1.33 in 2012, then a slight decrease the following year. The total assets turnover ratios of
World Citi Medical Center from 2011 to 2013 remained inferior to that of the two competitors.
The short average collection period of World Citi Medical Center reflects the good
efficiency in collecting its accounts receivables. Although the average collection period in 2011
is around 20 days, this became longer to 24 days in 2012 and 2013 and is not a good indicator
of the companys activity. Capitol Medical Center has the longest average collection period of
51 days in 2011, but this was shortened to 46 days by 2013 indicating improved efficiency in its
collection system. Marikina Valley Medical Center has an average collection period of 37 days
in 2011. This was shortened by 3 days in 2012 and 2013 reflecting its improved collection
system.
Comparing with the two competitors average collection periods for the three-year
period, World Citi Medical Center has maintained to have the shortest collection period despite
the noted increasing trend.
The overall activity performance metrics is poor for World Citi Medical Center.
WCMC
2012
20%
2011
CMC
25%
37%
2011
2013
Debt-to-total
35%
18%
LEVERAGE
assets ratio
WC
MV
RATIOS
Debt-to-equity
53%
22%
Debt-to-total35%
47%
ratio
assets ratio
Debt-to-equity
53%
59%
90%
ratio
Leverage or solvency reflects the level
WC
59%
20%
CMC
2012
37%
2012
CMC
59%
37%
25%
59%
2011
37%
2013
31%
2011
47%
MV
45%
46%
WC
90%
18%
MVMC
2012
46%
2013
CMC
85%
31%
85%
22%
45%
2013
49%
MV
97%
49%
97%
financed by either debts or equity. World Citi Medical Center has low debt-to-total assets ratios.
In 2011 the debt-to-total assets ratio is 0.35. This went down to 0.20 in 2012 and went down
further to 0.18 in 2013.
This means that by 2013, only 18 per cent of its total assets is
financed through debt. This is good for creditors showing World Citi Medical Center has
improving financial risk profile. Capitol Medical Center has a debt-to-total assets ratio of 0.37 in
2011 and 2012, which decreased slightly to 0.31 in 2013. Of the three hospitals, Marikina Valley
Medical Center has the highest ratio of 0.47 in 2011, which did not change much in three years.
From 2011, World Citi Medical Center was able to reduce dramatically the debt-to-total assets
ratio in three years thus having the lowest ratios among the three hospitals.
With regards to debt-to-equity ratio, World Citi Medical Center also has a downward
trend. The debt-to-equity ratio followed the same pattern of debt-to-total assets ratio, that is,
being 0.53 in 2011, which dropped to 0.25 in 2012 and 0.22 in 2013. This means that the
company is not relying too much on debts but on equity for financing its assets. Capitol Medical
Center has a slightly higher debt-to-equity ratio in 2011, which slightly went down after two
years. Marikina Valley Medical Center has the highest debt-to-equity ratio (0.90) among the
three hospitals, which went up in 2013. World Citi Medical Center maintained to have the
69
lowest debt-to-equity ratios compared to Capitol Medical Center and Marikina Valley Medical
Center from 2011 to 2013.
WC
26%
1%
WCMC
2012
1%
2011
CMC
17%
4%
26%
14%
2011
1%
2013
2%
2011
4%
8MV
%
47%
WC
14%
1%
CMC
2012
4%
2012
CMC
11%
4%
90%
17%
11%
2013
2%
2011
47%
MV
-5
%
13%
WC
90%
2%
MVMC
2012
13%
2013
CMC
44%
2%
44%
8%
-5 %
2013
12%
MV
39%
12%
39%
World Citi Medical Centers growth rate in sales is very low at 1% from 2011 to 2012 with a
slight improvement to 2% in 2013. Capitol Medical Center has a low growth rate in sales of 4%
in 2011, which went down to 2% in 2013. Marikina Valley Medical Center has a very high sales
growth rate of 47% in 2011 but dramatically dropped to 13% in 2012, and remained low in 2013.
The growth sales rate of World Citi Medical Center was the lowest for the three-year period.
The growth rate in net income of World Citi Medical Center showed a decreasing trend
from 26% in 2011 to 17% in 2012, and further drop to a single-digit 8% in 2013. The growth rate
of Capitol Medical Center was low at 14% in 2011 with a downward trend resulting in a (-5)%
after two years. This downward trend was also seen in Marikina Valley Medical Center having a
net income growth rate of 90% in 2011 with a drop to half after one year at 44%. World Citi
Medical Center has a net income growth rate which is intermediate between Capitol Medical
Center and Marikina Valley Medical Center during the period of 2011 to 2013. The decreasing
trend observed among the three hospitals may be due to the effect of the economic crisis
resulting in lower sales and high cost of operational and production expenses.
70
World Citi Medical Center performed poorly with its growth rates.
(Table 22)
Key Internal Factors
Weight
Rating
Weighted
Score
0.09
0.36
Strengths
1
71
stop, MRT
2
3
0.08
0.24
0.07
0.21
0.06
0.18
0.05
0.15
0.04
0.12
0.12
0.12
0.11
0.11
Weaknesses
1
0.10
0.10
0.09
0.09
0.08
0.16
0.06
0.12
0.05
0.10
TOTAL
Rating:
1.0
2.04
4 major strength
2 minor weakness
3 minor strength
1 major weakness
6.2.1 Strengths
1. Accessible and strategic location near jeepney stop, MRT
72
World Citi Medical Center is situated in a busy intersection ( Aurora Blvd and Anonas
intersection).
surrounded by several
establishments. St Joseph Church and School is 20 meters away and MRT station with a mini
mall beside it is just a 5 minute walk from the hospital. Banco de Oro is 10 meters away and
United Coconut Planters Bank is 30 meters from the hospital. Hi-Top Grocery is about 15
meters.
Strategic location is a major strength of WCMC. In any business a good location is a
key factor in the success of the business. The highest weighted score of 0.36 was given to this
major strength.
Although a minor strength, it has the second highest weight and weighted score of 0.08
and 0.24 respectively. Even if the location of WCMC is good but the management staff,
doctors and ancillary services are not trained and experienced the hospital services will suffer
eventually.
The President of World Citi Medical Center is a Pharmacy graduate of UST. She
obtained her Masters in Hospital Administration from the same university. Vice President for
Hospital Operations is a Pulmonologist and obtained his Masters in Hospital Administration from
Ateneo Graduate School of Business. The Medical Director is an OB-Gyn specialist and had
her Masters in Hospital Administration at the University of the Philippines. The two Assistant
Medical Directors are currently finishing their Masters in Hospital Administration. The Nursing
Director
obtained her Masters in Nursing from MCU. The Chief Finance Officer is Certified
Save for a handful non diplomates who were with the old Quezon City Medical center, all
new doctors are required to be diplomate and fellows of their respective specialties before they
are accepted as staff.
patients. The presence of EMR is becoming more attractive for doctors because of its space
saving benefit. A weight of 0.06 and a weighted score of 0.18 was given to this factor.
5. Management committed to improve quality of patient care through international standards.
Orientation and Meetings are being held regularly to formulate policies on quality patient
care according to the JCI standards with the ultimate goal of being JCI accredited in the next 5
to 6 years. The management fully supports this endeavor, however other concerns geared
towards improving quality patient care deserve attention of the management.
A weight
0.05
74
6.2.2 WEAKNESSES
1. High Hospital Rates
This is one of the major weaknesses of WCMC. Patients compare high hospital rates
of WCMC to nearby laboratories and hospitals offering the same services. Feedback forms
from confined patients always mention this factor as the reason why they do not want to be
confined again in the hospital. This factor has the highest weight and weighted score of 0.12.
WCMC still lacks state of the art equipments which can make them competitive with
other tertiary hospitals. There are times when confined patients have to go to other centers or
hospitals just to undergo special procedures. The hospital can increase its market share and be
a preferred facility if it can upgrade and invest in state of the art facilities.
This is a major
to join as staff.
and must be
The management should invest in a well trained and experienced marketing specialist.
75
The hospital has a marketing department but it seems that there is no one leading the
department in formulating and implementing strategies. WCMC should hire a marketing expert,
who understands the best way to market services of WCMC and eventually make money for
the company. A weighted score of 0.9 was given to this major weakness
5.
businesses. Apparently, this is for economical purposes. Although, each one have assigned
tasks for a specific business there might be incidences when workload can be shared with
other personnel in case of absences, too much work,
emergency or urgent data needed. Confusion and lack of focus may happen in this set up.
There should be a separate corporate group for the hospital This is a minor weakness with a
weight of 0.08 and weighted score of 0.16. It has the highest weighted score among the
weaknesses.
Being a family corporation can be considered a weakness for several reasons. The
needs of the business may not align
misunderstanding and may even affect the business as a whole. For example, one family
member may want to expand the business, but other family members may not share this
interest. Family businesses frequently have a confusing organization, and may have no clear
division of tasks. Authority and responsibility lines are unclear and jobs may overlap. The
decision-making hierarchy may be completely ignored to favor the decision or interest of a
family member. This is a minor weakness with a weight of 0.06 and a weighted score of 0.12
which is the second highest weighted score. High hospital rates also got a weighted score of
0.12.
76
Computers were installed but doctors were not informed about payments
and usage. Parking rules were suddenly changed without informing doctors. These
issues
caused agitation and anxiety among doctors. Some doctors opted to leave the hospital.
This minor weaknesses was given a weight of 0.5 and weighted score of 0.10
77
Weaknesses
contribute to revenue
Doctors Clinics
utilized
with
of patient care through
6.
School Division
members
7. Lack of communication between
management &
staff/doctors
Opportunities
SO Strategies
4. Accessible Internet
WO Strategies
Threats
WT Strategies
ST Strategies
78
(S2 ,T1)
Technological changes
Few
Many 0
Inflation Rate
Low
High 0
Large
Wide 0
Barrier to entry
6 Many
Few
Competitive pressure
High 0
Demand variability
6 Small
2
1
Average minus 6
3
3
2
2
-3.5
6 Low
Growth potential
Profit potential
High
Low
6 High
Low
79
Financial stability
Low
6 High
Inefficient 0 1
High 0
6 Low
Adaptability
Low
6 High
Average
4.1
Market share
Small 0
6 Large
Inferior
6 Early
Patient loyalty
High
Low
Competitors utilization
High
Low
6 High
-2.2
Product Quality
6 Superior
Product life cycle
Late
Average minus 6
Return on investment
6 High
Low
80
Leverage
Balanced
Imbalanced
Cash flow
2
High
Low
3
0
5
1
6
Risk
Much 0
5
involved
1
2
6 Little
Average
Liquidity
6 Balanced
Capital available
Low
Imbalanced
High
SPACE Matrix
(Figure 10)
Financial Strength
Conservative
Competitive
Service Category Strength
Aggressive
Advantage
81
Defensive Competitive
Environmental Stability
Interpretation:
This posture means that World Citi Medical Center is in an attractive service category
business.
High
3.0 to 4.00
The
EFE
Weigh
Scores
Strong
2.0-2.99
Average
1.0 to 1.99
Weak
II
III
Medium
2.0 to 2.99
IV
VII
VIII
VI
Low
1.0 to 1.99
82
The IE Matrix falls in the cell V which indicates that WCMC can be managed with hold
and maintain strategies. Strategies commonly employed are market penetration and product
development.
New products can include :
1. invest in state of the art facilities
2. develop an extensive advertising campaign
3. install a sophisticated information system including bedside terminals to further differentiate
itself
from its competition
4. positioning strategies must be selected on the basis of resources competencies and
capabilities as
well as environmental risks
Market development
Market penetration
Product development
Horizontal integration
Divestiture
Liquidation
Quadrant I
Strong Competitive
83
Quadrant III
Quadrant IV
The WCMC is in quadrant II which means it has a rapid market growth but a weak
competitive position..The most attainable strategy that can be applied by the hospital are market
penetration, product development, market development. In order to fulfill these strategies the
hospital must tap its resources and ask the support of the medical consultants, marketing
department, various department and other prospective investors to invest in the project. Hence,
the strategies identified in this quadrant must be used and implemented in order to be highly
competitive in the market.
ALTERNATIVE STRATEGIES
INTEGRATIVE STRATEGIES
Forward Integration
Backward Integration
Horizontal Integration
INTENSIVE STRATEGIES
Market Penetration
Market Development
Product Development
DIVERSIFICATION STRATEGIES
Concentric Diversification
Conglomerate Diversification
Horizontal Diversification
SPACE
1
1
1
IE
1
1
GS
TOTAL
1
1
1
1
1
1
1
1
1
3
2
3
1
84
DEFENSIVE STRATEGIES
Joint Venture
Retrenchment
Divestiture
Liquidation
Summary:
After gathering all the matrices including SPACE, IE and GS. We came up the lowest
score of 1 in the Integrative strategies (forward, backward and horizontal integration) and
Diversification strategies (horizontal diversification). It signifies that WCMC will not prioritize
to use aforementioned strategies. WCMC identified Intensive strategies with the highest score of
3 such as
Opportunity
AS
TAS
AS
TAS
AS
TAS
0.20
0.6
0.4
0.20
0.15
0.45
0.3
0.15
0.10
0.3
0.2
0.10
Accessible internet
0.10
0.3
0.2
0.10
Enhanced partnership
thru Asean integration
2015
0.05
0.1
0.15
0.05
Abundance of HMOs
0.05
0.1
0.05
0.15
AS
TAS
0.3
0.15
0.05
Increase in health
consciousness
Increasing population of
senior citizen
AS
Threats
New hospital in the
periphery
Rapidly evolving
technology
Low gross domestic
product
TAS
0.15
0.45
0.05
0.1
0.05
0.1
AS
TAS
0.15
0.05
0.15
85
Augmented burden of
taxation
Dynamic government
regulations
Worsening traffic
congestion
0.05
0.1
0.03
0.06
0.02
0.06
AS
Strengths
Accessible strategic
location near jeepney
stop, MRT
Well trained managerial
staff, doctors
Residency training
program from local and
foreign doctors
Electronic Medical
Records in Doctors
clinic
Management committed
to improve quality of
patient care through
international standards
Healthcare courses in the
school division
Weakness
TAS
0.05
0.03
0.02
AS
TAS
0.15
0.09
0.04
AS
TAS
0.09
0.27
0.18
0.09
0.08
0.16
0.24
0.08
0.07
0.14
0.21
0.07
0.06
0.12
0.18
0.06
0.05
0.15
0.1
0.05
0.04
0.12
0.08
0.04
AS
TAS
AS
TAS
AS
TAS
es
High hospital rates
0.12
0.24
0.12
0.36
0.11
0.22
0.33
0.11
0.10
0.2
0.3
0.10
Marketing department
not fully
utilized/effective
0.09
0.18
0.09
0.27
0.08
0.08
0.16
0.24
Family owned
corporation with
different interests of the
family members
0.06
0.06
0.12
0.18
86
Lack of communication
between management &
staff/doctors
TOTAL
0.05
0.05
4.69
0.1
4.1
0.15
3.15
The hospital considers three alternatives based on the relative attractiveness of feasible
alternative actions using the previous identified external and internal critical success factors;
1
2
3
The weights in each category are already given in the EFE and IFE Matrix
Comparing the score of market penetration (4.69) to product development (4.1) and to
market development (3.15), it is very clear that the hospital can have a very big advantages to
use the intensive strategies including establishment or build up a massive marketing campaign
advertisement such as online ads, print ads, tv ads, etc. (market penetration),acquiring a
Magnetic Resonance Imaging, enhance integration of Asean partnership ,add local and foreign
residency program
invitation(market development) . To pursue this goal, the hospital must tapped its reserved
resources and request the medical consultants and other potential investors to join in this
worthy endeavor.
87
e) Advertise the state of the art equipments and facilities of the hospital.
Establishing online advertisement connectivity, TV ads, print ads, etc. may acquire more
patients influx that can increase our revenue income.
f) Provision of project larger scale on marketing advertisement promotion including TV
commercial, Billboard ads,newspaper ads, online ads, magazine ads, print ads, Telehealth ads,
etc.
2. To add state of the art equipment such as
a) Magnetic Resonance Imaging (MRI)
Provision of MRI will attract more patients as well as consultants to bring patients in
our institution that can help in increase our revenue..
For the medical clinics within the vicinity, the hospital can offer rebates for any referral
from them laboratory examinations, x-ray examinations, use of ambulance and patients for
confinement.
3. To enhance integration of Asean partnership, add local and foreign residency
program
By enhancement of Asean partnership, the WCMC will open the opportunity for global
market through medical tourism that will result to increase in its market share and revenue.
a) Exchange residency program with students from other countries.
b) Additional accredited residency program from local to foreign.
c) Encourage and open for medical tourism the WCMC health facilities, equipment and
healthcare services.
4. To improve utilization of outpatient and ancillary services
a) Additional accredited residency programs aside from OB Gyne, Pediatrics, Internal
Medicine and Radiology is highly recommended.
b) Invite more doctors both general practitioner , specialists and subspecialist to hold
their clinics and practice in the hospital.
c)
Inform other practitioners along the area about the availability of the ancillary
procedures.
d) Network with other clinics to increase utilization of available ancillary procedures.
89
Reviewing collection procedures and instituting the appropriate changes may improve
the finance department, consequently, augment the hospital net income.
Collection of outstanding debts, likewise, is a very important aspect in the financials. It
includes mainly those patients who were not able to pay their bills in time and have lost to follow
up.
Work on a budget is also a very important point. This may include an efficient inventory
of medicines and supplies and cost cutting especially on unnecessary hospital-operating
expenses.
Infusion of additional capital by inviting investors to increase the cash flow that will be
used to improve the hospital infrastructure or buy additional equipment is also highly
recommended. Invite doctors to invest although most of them are already affiliated with other
hospital, they are still given priority to join the corporation and encouraged to practice in the
hospital because of the culture of the population to consult first their own family physician.
7. To empower and improve Marketing Department Operation
91
Conduct a monthly survey of the prices of the different drug store, hospital room
rates of the competitors around the area to compare with the hospital pharmacy
and hospital room rates price in order to be competitive.
c)
Provide marketing department staff training funds to make them efficient in carrying
out feasible programs.
d)
Oblige all Resident Physician to prescribe only medicines that are available in the
Hospital Pharmacy except those that are out of stock.
e)
Enhance the image, brand and position of the hospital by good public relations and
other promotions.
f)
Affiliate or make a MOA of more credit lines not only with existing affiliation but also
more HMOs and corporate linkages.
g)
The empowerment and improvement of marketing department operation has a huge role
in capturing the potential clients that will lead to increased income.
c)
Conduct a monthly survey of the prices of the different Drug Store around the area
and compare with the Hospital Pharmacy price to be competitive.
d)
Provide and complete the necessary drugs and supplies that are commonly being
prescribed by the physician including some branded drugs.
e)
Oblige all Resident Physicians to prescribe only medicines that are available in the
Hospital Pharmacy except those that are out of stock.
f)
Lead and convince all the outpatients to buy medicines directly from the Hospital
Pharmacy after being checked up and let them be accompanied by the secretary
92
g.) Affiliate or make a MOA of credit line not only with Mercury Drug but also with other
nearby drug stores .
Internal control of the Hospital Pharmacy is deemed necessary to improve the efficiency
of operation. This would include the proper and regular monthly inventory of drugs and supplies
as well as limiting the purchases for the drugs and supplies to those that are not commonly
prescribed and used in the Hospital. A systematic tool for recording and bookkeeping is also
important for monitoring. Encouraging all the in house physicians especially the Resident
Physician and those consultants who conduct their clinic to prescribe only drugs available in the
Pharmacy will definitely help in moving the medicines and supplies in the Hospital Pharmacy.
93
Objectiv
es
Strategies
Actions
Person
Respo
nsible
Tim
e
Fra
me
Bud
get
Key
Performanc
e Indicator
1.Increas
e market
share
1.To build
strategic
massive
marketing
campaign
including
online
ads,tvads,pri
ntads,etc.
a)
Marketi
ng
Depart
ment
2016
2018
10
milli
on
Increase
patients
patronage
at least 510%
Increase
number of
stockholder
s
Increase
number of
investors
patients(diabetic,geriatrics,wellness,
pregnancy , pediatric, packages,etc.
b) Giving incentives to the referred
clients.
c) Invite other consultants or clients
to practice in our institution thru
various advertisement.
d) Update monthly the social media
advertisement by creating a new
gimmick
in
advantage
in
our
and
facilities
of
the
hospital.
f) Provision
on
marketing
advertisement
94
2.To empower
and improve
marketing
department
operation
Marketi
ng
depart
ment
2016
2018
sales.
b)Conduct a monthly survey of the
prices of the different drug store,
hospital
room
competitors
rates
around
of
the
area
the
to
also
more
HMOs
and
and
maintain
2.Increas
e revenue
net
income
Buy an MRI
Purcha
sing
Depart
ment
2016
2018
2.To enhance
Medical
2016
50
milli
on/
15
milli
on
Increase
admissions,
increase
opd
consults,
increase
referral
system.
Increase
95
integration of
Asean
partnership
,add local and
foreign
residency
program .
3. To enhance
improvement
finance
department
depart
ment,Fi
nance
depart
ment,H
uman
Resour
ces
depart
ment,M
arketin
g
depart
ment
Finance
Depart
ment,
Human
Resour
ces
Depart
ment
2018
2016
2018
1
milli
on
residency
affiliation
from local
and foreign
Increase
patients
admissions
and
consults
Decrease
usage of
electricity
and water
Increase
number of
employees
efficiency
Increase
electric and
water usage
savings
96
4.To improve
Pharmacy
operation
Finance
Depart
ment,
Pharma
cy
Depart
ment,
Marketi
ng
Depart
ment
2016
2018
Increase
sales on
pharmacy
department
Decrease
number of
drugs
expiration
97
Staff satisfaction
STRATEGIES
Conduct Skill
Training and
Competency
Seminars
Loyalty Award and
Recognition;
Promotion
Personality
improvement
seminars; Conduct
regular interviews
with employees
MEASURES
Training
Certification and
Recertification as a
requirement
Employee turnover
(26% in WCMC)
TARGETS
Certification
compliance of 80%
by 2017
Absenteeism
(42.2% in a US
article20)
Lessen
Absenteeism by
20% yearly starting
2016
Reduction by 30%
by 2017
2020 Rates of Sickness Absenteeism Among Employees of a Modern Hospital: the Role of Demographic
and Occupational Factors. Pines A et al. Brit J Ind Med, May 1985.
98
Investing in people is the core mechanism in the attainment of the companys goals, thus
there is a need for empowerment of the staff. This may be achieved by improving and updating
their knowledge and skills through special trainings and regular recertification. Examples are
Basic Life Support certification, IV insertion skill training and enhancement, Pharmacology
lectures, Patient care and bedside care refreshment courses, etc. It is also important to focus on
attitude modification of employees, by inculcating a sense of loyalty to the company. Due
recognition should be given to those who have devoted time in service of the institution.
Appropriate promotions should be given to deserving employees. In this way they grow love for
the institution and they become proud to be part of the institution. Staff satisfaction is a major
concern.
problems thus improving job satisfaction. Personality improvement sessions may have a big
impact on employees, like beauty lessons to improve their appearance and self-esteem,
cooking lessons that they can use during day offs, seminars on hygiene, healthy eating and
sickness prevention at home, etc. It is also important to hear from the employees through
interviews the reasons for their absences and try to seek solutions.
GOALS
Quality outcomes
Patient safety
STRATEGIES
Information and
Implementation of
Clinical Practice
Guidelines;
Regular case
conferences;
Review of hospital
cases/census
Pharmacology
MEASURES
Readmission rates
within 30 days
(20% in US
hospitals21)
TARGETS
Reduction by 10%
of readmissions
starting 2017
Medication error
Reduction by 20%
2121 0 A Best Way to Manage a CMS Hospital Readmission Reduction Program. Brown B.
Readmissions, Regulatory Measures, December 2013.
99
Improvement in
Standards of care
Lectures; Seminars
on Medication
Errors; Reporting,
investigation of
causes and
Correction of
Behavior;
Recognition
Review of
Credentials of
Medical Staff; Recredentialing;
Promotion
rate (5.07% in US
hospitals22)
quarterly starting
2016
Core competency
compliance
Compliance of at
least 80% by 2017
The internal business environment needs periodic evaluation and process modification to
improve the companys performance delivering good quality service. This can be attained by
looking into strategies geared towards compliance to globally accepted standards in medical
care by doctors, and reduction in medication errors by the nursing staff through strict monitoring
and prevention. Equally important is assuring the patients that they are receiving the best of
care because the healthcare providers have met the expected competency levels.
GOALS
In-Patient
satisfaction
STRATEGIES
Conduction, review
and investigation of
customer
complaints/comments
; Recognition
MEASURES
+/- comments and
feedbacks,
satisfaction
ratings; likelihood
to recommend
TARGETS
Increase in (+)
over (-) comments
to 80% starting
2016 with
quarterly
evaluation
2222 1 Medication Errors in the United States Hospitals. C A Bond et al. Pharmacotherapy, 2001.
100
Emergency
Department
satisfaction
Census Review;
Recognition
ED consultations
left without being
seen
Physician
satisfaction
Admission or
Occupancy rates
(45% occupancy
rate)
5% or less
starting 2016 with
monthly
evaluation
Increase in
Occupancy rate
by 50% by end of
2016
The satisfaction of customers, being the end users of the service provided by the
hospital, is essential in maintaining focus to the achievement of the companys vision. Patient
satisfaction can be measured through increase in positive feebacks and adequate delivery of
their needs. The function of the Emergency Department is crucial in the overall function of the
hospital because it gives initial medical or surgical care to patients, thus it should be able to
attend to all patients who walk into its door. Physician satisfaction is very important in that their
concerns should also be given proper attention. This may be reflected by increased admission
rates and occupancy rates.
GOALS
Financial growth
Expense control
Liabilities reduction
STRATEGIES
Improve
performance and
delivery of care;
Recognition
Review of
processes; Supply
inventory audits;
Recognition
Debt payments;
Financial review
MEASURES
Gross revenue
(Php 313M in
2013)
Operating profit
margin (5% in
2013)
Total liabilities
(87M in 2013)
TARGETS
Gross revenue
increase by at least
5% yearly starting
2016
Operating profit
margin increase by
5% yearly starting
2017
Reduction by 5%
yearly starting
101
and planning
2017
Financial growth is a major factor in any business. This goal can be measured in terms
of gross revenue, which is currently 313 million pesos for World Citi Medical Center. A target
increase of at least 5% annually seems reasonable to attain a steady growth. Reducing the
operating expenses without compromising quality of health care delivery can improve the
financial standing of the company. This may be achieved through review of operating costs and
profiles of suppliers, identification of problems, with formulation and implementation of solutions.
Also, reduction in short term and long term debts should be specifically addressed, especially
bad debts.
102
STRATEGY MAP
FINANCIAL
PERSPECTIVE
CUSTOMER
PERSPECTIVE
INTERNAL
PROCESSES
PERSPECTIVE
LEARNING AND
GROWTH PERSPECTIVE
Revenue
growth
Increase in
net income
Customer
Satisfaction
Gain market
share
Manage
Customers
Added value
services
Increase of
Seat load factor
Manage
operations
Manage
innovations
Marketing
103
% of
Rev.
100
%
85%
2014
2015
363,370,254
276,415,756
% of
Rev.
100
%
86%
318,433,267
323,209,766
270,995,839
15%
2016
385,172,470
292,835,717
% of
Rev.
100
%
81%
47,437,428
46,794,010
11%
34,558,372
5%
412,134,542
296,591,254
% of
Rev.
100
%
77%
308,207,350
% of
Rev.
100
%
75%
14%
70,534,537
19%
88,581,216
18%
103,927,192
25%
35,767,914
11%
52,019,791
14%
53,315,484
14%
61,656,526
15%
12,879,056
11,026,096
3.4
%
18,514,746
5.1
%
35,265,732
9.2
%
42,270,666
10%
1%
4,079,982
1%
4,396,629
1%
3,863,717
3,307,829
8,104,129
3%
9,519,958
3%
10,258,801
3%
9,015,339
7,718,267
2.4
%
12,960,322
3.6
%
24,686,012
6.4
%
29,589,466
7.2
%
811,867
0.3
%
3%
311,521
0.1
%
3%
9,015,339
7,718,267
2.4
%
12,960,322
3.6
%
24,686,012
6.4
%
29,589,466
7.2
%
3%
10,331,826
10,570,323
10,579,720
2018
3,473,198
8,104,129
5,554,424
2017
12,681,200
Table 28. Financial Projection, Income Statements, World Citi Medical Center
104
Table 29. Financial Projection, Balance Sheet Assets, World Citi Medical Center
% of
Rev.
2014
2015
% of
Rev.
2016
% of
Rev.
2017
% of
Rev.
2018
% of
Rev.
15%
6%
47,764,990
20,465,295
48,481,465
20,731,344
15%
43,613,892
21,000,851
12%
49,587,009
21,273,862
13%
53,631,320
21,550,423
13%
7%
21,653,462
22,301,474
6.9
%
25,435,918
7%
27,347,245
7.1
%
29,673,687
7.2
%
0%
17,900
0%
25%
61,770,097
20%
87,714,234
28%
89,883,747
91,514,283
28%
90,050,661
25%
98,208,116
26%
104,855,430
25%
129
%
373,246,971
121
%
356,113,642
114
%
338,307,960
321,392,562
99%
359,762,890
99%
341,774,745
89%
332,686,008
81%
17%
50,553,398
16%
43,553,398
14%
43,553,398
43,553,398
146
%
423,800,369
138
%
399,667,041
127
%
381,861,358
364,945,960
43,553,398
113
%
403,316,288
43,553,398
111
%
385,328,143
43,553,398
100
%
376,239,406
105
91%
Table 30. Financial Projection, Balance Sheet Liabilities, World Citi Medical Center
% of
Rev.
2014
2015
% of
Rev.
2016
% of
Rev.
2017
% of
Rev.
2018
% of
Rev.
12%
39,804,158
40,401,221
12.5
%
45,421,282
12.5
48,146,559
12.5
%
51,516,818
12.5
%
0%
154,549
132,913
6%
18,363,136
18,363,136
6%
18,363,136
5%
18,363,136
5%
18,363,136
4%
18%
58,321,843
58,897,270
18%
64,006,595
18%
66,932,884
17%
70,387,202
17%
10%
22,813,738
17,338,441
10%
22,813,738
17,338,441
28%
61,135,581
76,235,711
128
%
155
%
412,323,930
424,693,648
473,459,511
500,929,359
222,177
423,189
0
5.4
%
5.4
%
24%
56,743,797
16%
53,392,405
14%
42,800,020
10%
56,743,797
16%
53,392,405
14%
42,800,020
10%
120,750,392
33%
120,325,289
31%
113,187,222
27%
424,693,648
155
%
507,248
542,312,040
424,693,648
149
%
541,699,490
424,693,648
141
%
537,880,870
106
131
%
107
ASSUMPTIONS In 2014 :
1. The estimated total revenue of Php 318,433,267 was calculated from an increase of
1.5% from 2013.
2. The estimated Direct Costs of Php 268,339,017 was calculated from an increase of 2%
from 2013.
108
ASSUMPTIONS In 2015 :
1. The estimated total revenue of Php 323,209,766 in 2015 was calculated from an
increasing trend of 1.5% annually from the estimated value in 2014.
2. The Direct Costs were estimated to increase by 2% annually from the estimated value in
2014.
3. The Gross Income went down by 1.4% from 2014.
4. The General and Administrative Expenses were estimated to increase by 3.5% annually
from 2013.
5. The Net Income went down by 14% from 2014.
6. The Total Income went down by 14% from 2014.
7. The Current Asset as Cash was estimated at 15% of total revenue.
109
8. The value for the Accounts Receivables was estimated to increase by 1.3% from 2014.
9. The extrapolated value for the Inventories was estimated to be 6.9% of the Total
Revenue.
10. The extrapolated values for the Properties and Equipments had a 5% depreciation
annually.
11. The Accounts Payable was calculated to be 12.5% of the Total Revenue.
12. The Income Tax Payable was assumed to be 1.2% of the Net Income.
13. The Loans Payable was calculated to decrease by 24% from 2014.
14. World Citi Medical Center has a plan to purchase a new generator set in response to the
energy crisis in the country (worth USD 99,999 or Php 4,439,955.60, plus Php 18,271.97
for shipping ).
15. World Citi Medical Center has a plan to purchase a new Magnetic Resonance Imaging
equipment by 2016 (worth Php 50 million inclusive of bank loan interest, to be financed
as Php 26 million share of WCMC and Php 24 million from investors/doctors at Php
250,000 per share)
16. The plan for a 5-storey multi-level steel parking, with the ground floor to be rented out to
concessioners, is underway (worth Php 8 million).
17. World Citi Medical Center plans to beef up its Marketing Department with an additional
Php 5 million budget annually.
110
10. The payments for the 1st installment dues for the Generator Set and MRI, and the 1 st
payment for the construction of the multi-level parking were subtracted from the Cash
Current Asset.
11. The value for the Accounts Receivables was estimated to increase by 1.3% from 2016.
12. The extrapolated value for the Inventories was estimated to be 7.1% of the Total
Revenue.
13. The extrapolated value for the Properties and Equipments had a 5% depreciation
annually.
14. There is an increase in the Properties and Equipments of Non-Current Assets due to the
acquisition of the Generator Set and the Magnetic Resonance Imaging Equipment.
15. The Accounts Payable was calculated to be 12.5% of the Total Revenue.
16. The Income Tax Payable was assumed to be 1.2% of the Net Income.
17. The Loans Payable was calculated to decrease by 24% from 2016.
18. Included in Loans Payable are the remaining balances for the Generator Set (Php
2,377,721.37) and Magnetic Resonance Imaging Equipment (Php 35 million).
19. Also included in the Loans Payable is the remaining balance for the 5-storey multi-level
parking (Php 6 million).
14. There is an increase in the Properties and Equipments of Non-Current Assets due to the
completion of the 5-storey steel parking building.
15. The Accounts Payable was calculated to be 12.5% of the Total Revenue.
16. The Income Tax Payable was assumed to be 1.2% of the Net Income.
17. The Loans Payable was calculated to decrease by 24% from 2017.
18. Included in Loans Payable are the remaining balances for the Generator Set (Php
1,188,860.68), Magnetic Resonance Imaging Equipment (Php 30 million), and 5-storey
multi-level parking (Php 4 million).
The three-year projection plan for World Citi Medical Center shows an increasing
revenue of at least 5% annually starting 2016. This increase in revenues allows the hospital
to acquire modern diagnostic and operational equipments, and pay off corresponding
expenses and loans. It also allows the hospital to offer more Value-Added Services, such as
improved parking and commodity availability through concessioners. With the projected
increase in revenue, Cash Asset is projected to go up in 2018 even with payments for the
acquired equipments and properties. The projected increase in revenue also puts World Citi
Medical Center in a better position to pay off loans and other liabilities, reapply for new
loans, and utilize its cash for further acquisition of equipments and expansion. Through
aggressive marketing strategies and better management processes, our financial
projections are optimistic.
113
Conclusion
World Citi Medical Center is currently in the hold and maintain position. The hospital is in
a stable competitive state. It is recommended that management must not be complacent for
what it has attained because sooner or later a new entrant may enter the arena or if not, its
nearest competitor may re invent itself and compromise World Citis market share. Capitalizing
on the critical success factors will further strengthen its hold in the healthcare playing field. The
hospital must choose wisely which strategies to pursue to increase its market share and
revenue.
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REFERENCES
Books
Publications/Articles
Mortality Ten Leading Causes Number and rate/100,000 Population Philippines 5-Year Average
(2000-2004) & 2005. Department of Health Republic of the Philippines. From Wikipilipinas: The
Hip 'n Free Philippine Encyclopedia
Health Expenditure in Relation to GDP, World Bank Group IBRD IDA
GDP Annual Growth Rate of the Philippines
The Filipino Senior Citizen at a Glance, Nicamil K. Sanchez, Winter Newsletter 2008
Total Health Expenditure for Filipino Family, National Statistical CoordinationBoard
Typhoons in the Philippines, Wikipedia
Generics Act of 1988. The LawPhil Project, Philippine Laws and Jurisprudence Databank
115
Websites
neda.gov.ph
nso.gov.ph
census.gov.ph
sec.gov.ph
dti.gov.ph
worldcitimedicalcenter.com
marikinamedical.com
www.capitolmedical.org
www.investopedia
www.investinganswers.com
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