Manny Villar ventures into hospital business

Rappler.com

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Manny Villar ventures into hospital business
The former politician aims to build a chain of hospitals with 3,000 beds over the next 5 years

MANILA, PhilippinesEntrepreneur Manuel “Manny” Villar is now entering the healthcare industry by building a chain of hospitals.

For its first hospital business, the former Senate president’s hospital unit, Vitacare Healthcare Incorporated, is aiming to offer 3,000 beds across the country over the next 5 years.

The Villar group, under its hospital unit, recently signed a partnership with a group of doctors for the construction of a 100-bed hospital in Vista City, Daanghari, Muntinlupa, that would cost P500 million ($10.60 million).

Villar said the construction of Vitacare hospital in Daanghari will start in May 2016 and will be completed in two years. The group’s hospital will be branded as Vitacare Unimed Hospital and Medical Center.

Villar said the group could easily expand its hospital business because the company has the land bank for expansion.

“This will be moving very fast. We might have different partners or same partners for different locations,” Villar said.

The group also identified 13 other areas for future hospital projects. 

Among the potential sites are Parañaque City (Lake Front); Bataan (Balanga); Batangas (Santo Tomas); Bulacan (Malolos and San Jose del Monte); Cavite (General Trias and Tanza); Cebu (Talisay); Cagayan de Oro; Davao; Iloilo (Boton); Naga (Camarines Sur); and Pampanga (San Fernando).

Ready to compete

The Villar group’s venture into the hospital business signals its readiness to compete with Ayala Land Incorporated and Metro Pacific Investments Corporation, two companies that are also aggressively expanding in the same space.

Metro Pacific has been acquiring and investing in existing hospitals, as it targets to have 5,000 hospital beds in 5 years.

Ayala Land, in partnership with Mercado General Hospital Incorporated, is building 10 hospitals offering 1,000 beds and 10 satellite clinics over the next 5 years.

As for the Villar group, it opted to build its own chain of hospitals instead of acquiring existing hospitals because it will be contributing land to the joint venture development, Villar said.

The Villar group, however, will maintain majority ownership in these hospitals.

“We want to have a chain of hospitals across the country and one big flagship hospital in Daanghari that will contain all the major facilities,” Villar said.

The Villar group’s venture into the hospital business is expected to complement its real estate development as it plans to develop several integrated mixed-use projects. (READ: Anticipating huge demand, Manny Villar to build more malls) Rappler.com

$1 = P47.18

Hospital hallway image via Shutterstock

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