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CAPITAL BUILD UP PROMOTION MARKET SHARE. STRATEGIES: 1. Heightened/Agressive campaign 2 . Commission CASH/ a. Corporate 2,000 shares 2.5 % b. Individual 2000 shares 2.5 % 1500-2k 3.5 % 1000 below 5.0%. MARKETING.

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  1. CAPITAL BUILD UP PROMOTION MARKET SHARE STRATEGIES: 1. Heightened/Agressive campaign 2. Commission CASH/ a. Corporate 2,000 shares 2.5% b. Individual 2000 shares 2.5% 1500-2k 3.5 % 1000 below 5.0% MARKETING

  2. Amortization service charge 2k------------------5% 1500-2k--------3.5% 1000k------------2.5%

  3. Develop CHP ( initially projected for OPD services ) 1. CDE market 1000 x 1000 = 1M

  4. Heavy Machineries along Vito Cruz, Makati 80 employees Proposal 2000 shares and avail of benefits for employees only provide industrial health needs Prospects/Advantages: 1. Inc. patient traffic 2. Referral to other companies 3. Business partnership BORMAHECO

  5. Option 1 a. Apply 30 day benefit free room and board p.a. Each patient admission can avail only of 5 consecutive days free shall be charged thereafter b. Apply discounts on lab., pharmacy, x-rays c. Deduct 10% from PF of doctors in favor of hospital d. Discounts to patients 10% e. Ward admissions only are free f. Upgrade to semi and private will be charged Bormaheco

  6. Option 2 A. 15 day free room and board annually B. Apply discounts on lab., etc. C. No deductions from PF of doctors Discounts to patients 15% ** Issue of abuse? Deterrence > Not all services are free > Industrial Health Officer will serve as gatekeeper > Projections; Daily Census?

  7. Industrial Needs A. Yearly PE and lab. On-site at a special rate B. Discounts on other lab and diagnostics C. Discounts on consultation fees D. Discounts on Lab, etc. E. Privilege may extend to dependents such as discounts on vaccinations, and etc. bormaheco

  8. 50 Cebu Pac 200 shares ea. 20,000 x 50=1M Amortization Benefits for executive check up q 2 years Treadmill, colonoscopy, prostate, lipid, DM, etc Additional packages as shares increase Pilot’s Union

  9. No dividends within 1 year of membership Min. 3mos and max 1 year payment scheme Make a scheme

  10. Dr. Bob Deniega’s Report given through Power Point presentation: Davao Report: CHP – Why it failed in MMG Davao City (continued) The CHP was conceived to: 1.     Provide affordable Health Services to the Community 2.     Provide additional revenues to the hospital 3.     Provide income to the doctors and employees. CEO MEET  PROCEEDINGS SEPT 12/13, 2009 6TH INSTALLMENT

  11. Reasons for Failure: 1.  Premiums were too small 2.  Members were anybody aside from the principal (even unrelated persons). In companies like Floirendo group of companies, no limit to number of dependents. ( dependents will be charged with discounts only ) 3.     Benefits were too much- no limit to opd consultations. (Consultations will only be discounted) Even taxi fare to and from hospital covered by CHP! (no way!) Diagnostics done outside MMG still covered by CHP.( no way!)

  12. Accomodations - private rooms – should have been ward accommodations only. ( We will allow free ward admissions only ) Terms of Payment were too lax : Monthly, Quarterly, Annually. Patients already receive the CHP benefits but later default on monthly or quarterly payments. ( Benefits will apply when at least 50% of payment shall have been made) No screening for pre-existing diseases. ( No need for this as we are not HMO where everything is free depending on premium) Too many affiliated hospitals. ( We don’t have this situation ) Provided maternity benefits to all female subscribers ( Not provided for by our CHP for Bormaheco; in case we will only give discounts )

  13. Too many freebies – 1.     Even the transportation was shouldered by CHP ( No way! ) 2.     All medicines were provided, even non PNDF medications through emergency purchases ( No way! ) 3.     Discounts were hefty. Up to 30% of hospitalization, diagnostics, and medicines. ( Discounts will be appropriate; max of 10-15%)

  14. Problems with Doctors: 1.     Did not take an active role in advising the patient that admission is not necessary as this is an additional income for them. ( A gatekeeper/coordinator will check on this) 2.     Performed procedures in other hospitals where the more appropriate thing to do is to perform it in the main hospital i.e. MMG Davao ( NO situation similar to us ) 3.     Increased/manipulated professional fees as the excess would be paid by the company anyway ( Will not be applicable as we will put a ceiling to PF )

  15. 4.     Billed patients for minimal services e.g. for visits which can easily be forgone 5.     Attended to patients even beyond his/her specialty resulting in longer hospital stay, repeat procedures etc. and bill them accordingly.( we will limit number of days that are free consecutively) 6.     Did not go on off service when clearly he/she has no more role in the management of the patient’s case. Ex. Previous patient handled who was admitted for a condition no longer related to the previous condition.

  16. PROBLEMS CREATED GOALS Abuse of benefits by patients, employees and doctors Service to Community Very low premiums, too many benefits Hospital Income Increasing Accounts Receivables Doctors’Income Depletion of resources FINANCIAL LOSSES RESULTED FROM: 1.     Defects in Policies 2.     Lack of Monitoring and Review 3.     No cooperation from employees and Doctors.

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