By Justine Irish D. Tabile, Reporter
THE Department of Health (DoH) said it plans to bring in private partners to take on the operations and maintenance (O&M) of government hospitals.
“I am running the biggest conglomerate of hospitals, and I need the help of the private sector,” Health Secretary Teodoro J. Herbosa told the Health Leadership Summit 2025 on Wednesday.
“I am willing to share some of the hospitals and outsource the O&M contracts to make sure that the hospitals are functional.”
He said the DoH currently operates 83 hospitals of 500 to 1,500 beds.
“We are ready for public-private partnerships (PPPs). We are actually ready for them to be managed by (the private sector),” he said.
He said funding delays have become an issue for equipment maintenance, and noted that the government has changed strategy for healthcare facilities, preferring to add more Bagong Urgent Care and Ambulatory Services (BUCAS) Centers to opening new hospitals.
“Because of the Universal Health Care Law, I’m asking the private sector to partner in primary healthcare, in longevity medicine, in diagnostic outpatient testing, and in ambulatory care,” he said.
“I need more BUCAS Centers; I do not need more hospitals. Hospitals are difficult and expensive to manage,” he added.
Rafael Jaime V. Recio, chief strategy and investment officer at AC Health (Ayala Healthcare Holdings, Inc.), said that the private sector in other countries is already taking part in the O&M of government-owned hospitals.
“It is a model that works in other countries,” he told reporters on the sidelines of the summit.
However, he said that to make it a viable option for private companies, the agreements need to “make sense from a commercial standpoint.”
“There’s a balance that has to be struck between what the government needs, what we can deliver, and how incentives are aligned between the two sides,” he said.
He said incentives have to be tailored to each project.
AC Health is currently participating in various PPPs with local government units.
Meanwhile, he said that AC Health is planning to use the funding from investment firm ABC Impact’s acquisition of a 16% stake in the company to expand its network.
“The idea is that we want to focus on key geographies beyond Metro Manila,” he said.
“Obviously, Metro Manila is a priority for us. But then beyond Metro Manila, we’re looking at key cities outside that we’d want to double down on and create a tighter network,” he added.
He said AC Health sees acquisition opportunities but noted that the industry has become more competitive.
AC Health is hoping to expand its network to 10 hospitals, 300 clinics, and 1,150 pharmacies by 2027.
Asked if there are more plans to raise funding, he said, “I think our focus over the next maybe three to five years is really making sure that we’re able to effectively deploy the capital, work with our partners, and grow the portfolio, and then maybe at some point, if the need dictates, then we might look at it again.”
“We’re always evaluating funding options as and when needed. But for now, I think the focus is really execution, rolling out, and making sure that we’re able to deploy the capital effectively and grow the portfolio,” he added.