Private Hospital Proposes to Run Iloilo City Public Hospital
The city government of Iloilo has received an unsolicited proposal from The Medical City (TMC) to lease and operate the Iloilo City Hospital, which is under construction in San Pedro, Molo. Atty. David Abraham Garcia, head of the city’s Public-Private Partnership Office, confirmed that TMC submitted its proposal in June. He
By Rjay Zuriaga Castor
By Rjay Zuriaga Castor
The city government of Iloilo has received an unsolicited proposal from The Medical City (TMC) to lease and operate the Iloilo City Hospital, which is under construction in San Pedro, Molo.
Atty. David Abraham Garcia, head of the city’s Public-Private Partnership Office, confirmed that TMC submitted its proposal in June.
He also said other healthcare firms expressed interest, including Healthway Medical Network of Ayala Corp. and the West Visayas State University Medical Center, also known as Don Benito Hospital.
The hospital is being built on city-owned land near Esplanade 2, about a kilometer from the existing TMC Iloilo Hospital.
Garcia said TMC’s offer includes leasing the facility, making lease payments to the city and potentially paying an upfront fee.
He added that TMC also proposed assuming the city’s PHP500 million loan used to build the hospital.
“They will lease the structure, the hospital, including all the facilities,” Garcia said.
“They will be paying us and then they’ll operate the hospital.”
He noted that a key part of the negotiations will be the provision of free medical services for indigent city residents.
Garcia explained that the Swiss challenge will focus on a specific bid parameter, such as the percentage of free services to be offered.
Other interested parties can submit competing offers during the process.
“The best offer will always win,” he said.
“By the end of all of this, the winning bidder will be issued a notice of award.”
The city earlier secured a PHP500 million loan from the Development Bank of the Philippines to fund the construction of the hospital.
Garcia said the land is owned by the city, while the building is being funded through the loan.
“One of our items for negotiation is that the loan will be assumed by whoever operates the hospital,” he added.
Garcia said TMC’s proposal is currently being evaluated and a decision is expected by August.
If found favorable, formal negotiations will begin.
TMC has proposed a 25-year lease term with an option to extend for another 25 years.
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