STI allots P1B for hospital acquisition binge - Jacob

DLS-STI Medical Center, a newly-formed partnership between STI Education Services Group, the country's largest network of IT-oriented nursing colleges and Delos Santos Medical Center, is spending over P1-billion within the next two years to acquire more hospitals in the country.

STI president and Chief Executive Officer Monico Jacob told a news conference yesterday the joint venture company will initially spend over P100 million to improve the existing facilities of DLS which operates at 150 beds.

With the proposed expansion venture, DLS-STI Medical Center sees to increase its capacity to 200 beds and adding about 1,000 to 2,000 beds more through its planned horizontal expansion.

Jacob said the horizontal expansion may entail acquisition at least more three hospitals located in the Southern portion of Manila. But company executives refused to disclose the names of the hospitals but confirmed negotiations are underway.

On top of the three hospitals, the company is also eyeing hospitals located in the north and east of Manila and other key cities in the country including Cebu and Davao.

To acquire these hospitals, the company needs to infuse about P100 to P300 million for each medical facilities, Jacob said.

Apart from these, company executives also mentioned a plan to put up four to five state-of-the-art diagnostic centers and out patients clinics with an estimated investments cost valued at over P100 million.

Another major part of its expansion is the setting of a medical transcription college which the company sees to become the country's biggest medical transcription school.

"Our acquisition of Delos Santos is aimed at bringing healthcare to the 21st century and that can be best accomplished by this merger," Jacob said.

STI will provide the hospital with financial, IT human resources and marketing support. With an edge in computer education, STI has integrated ICT education in its nursing programs to make nursing professionals even more competitive in the modern environment, particularly in healthcare institutions in the country and abroad.

"We are investing a significant amount of our resources and expertise to expand DLS-STI Medical Center's facilities and improve the hospital's operations," he added.