Basilan eyes to become medical hub in Mindanao PDF Print E-mail
Friday, 28 August 2015 12:43

Barring hitches, Basilan province may soon become a medical and health-care destination in Mindanao.

This sounds far-fetched, but the Basilan provincial government under Governor Jum Akbar has already laid the groundwork to prepare the island province to become a medical destination in Mindanao with the signing of a memorandum of agreement (MOA) with MSR Health Care Inc., a private entity specialized in health care equipment and services, for the upgrade and modernization of the Medical Laboratory Department and Dialysis Center of its provincial and district hospitals.

Under the MOA, MSR Health Care Inc. shall undertake the financing, design, operation and management of the project and is allowed to recover its total investment, operating and maintenance costs plus a reasonable return thereon.

The project  will be carried out at no cost for the Basilan LGU. Its only responsibilities under the deal is for the application and facilititation of all applications for all Philippine governmental and other authorization, approvals, licenses, permits and or consents which may be required and/or necessary to enable both the LGU and MSR Health Care to perform their undertakings.

Inside sources said that under the deal, MSR Health Care, aside from modernizing the medical laboratory equipment, will make available at least 20 dialysis machines, making Basilan one of only three places in the country to have such facilities, and consequently draw many patients with kidney problems from several parts of Mindanao to seek treatment in Basilan’s soon-to-be modernized hospitals.

The same sources said the project may be focused on Lamitan District Hospital and other Basilan government-run hospitals.

MSR Health Care, under the MOA, will take care of delivery of modern diagnostic equipment for th Medical Laboratory Department, including the supply of their corresponding component accessories, reagents, and other consumables and the dialysis machines.

The company willl repair and maintain the existing Medical Laboratory Equipment and Dialysis Machines in the target hospitals owned by the LGU, renovate and repair the existing Medical Laboratory Department and Dialysis Center and install and repair their respective equipment.

MSR Health Care shall grant Basilan a share in the revenues generated by the Medical Laboratory Department and Dialysis Center operations of the Target Hospitals during the entire duration of the Concession Period in accordance with the article under the MOA

The deal is similar to build, operate and transfer covering the concession period.

The Basilan LGU shall also assist the company in availing of any incentives or privileges or the like provided under Philippine law, including without limitation, the Philippine Omnibus Investment Code.

Under the MOA, the LGU shall also  shall recognize and acknowledge MSR Health Care’s  title and ownership over the Medical Laboratory Equipment and Dialysis Machines:

The Basilan LGU, to ensure the viability of the project, undertakes other responsibilities as stated in the MOA.

Aside from transfer of the ownership and title to the Medical Laboratory Equipment and Dialysis Machines to the LGU at the end of the Concession Period, the LGU shall be entitled to a share in the revenues generated by the Medical Laboratory Department and Dialysis Center of the LGU (the “Profit Share”) during the effectivity of this Agreement.

The LGU’s profit share shall commence only on the second year up to the fifth year of the Concession Period in the amount of 15%  of the net income (Operating Profit less Taxes less Interest) actually

The MOA provide that the LGU’s profit share shall be increased to 20% on the start of the sixth year up to the end of the Concession Period of the net income (Operating Profit les Taxes less Interest) actually collected.