A little learning is a dangerous thing

Every generation needs a revolution - an entrepreneurial revolution

Rizal Philippines
January 13, 2018

The growth area in the economy is health care. The external environment, the PESTEL has favored that:

         1. Growing population;
         2.  More lifestyle diseases because of pollution and modernization
         3.  Philhealth and govt supoort for universal health care
         4.  Open loan windows from govt banks to groups wanting to put up hospital. Thus a group of 30 to 50  doctors can put up a hospital of 100 beds or more to the tune of  P300 to P500 million.

Land Bank finance ACE hospital project in Ilollo

       But this post sees problems dark clouds ahead.  While there are many successful hospital ventures the stories I have been hearing do not forebode well  for the future of many MD hospitals  Even while teaching at MBAH I have heard horror stories about the faults in hospital management by the professionals.

    Such was encountered by Ms. Rose Montenegro - Reyes in turning around  Makati Med. The MDs should be allowed to practice what they know best -  patient care and curing illnesses. About managing.... leave it the professional  managers and other technicians    The MDs as in their case  were responsible for bringing the hospital to the brink.

How Rose turned around Makati Med

    One of her solutions was to divide the management of the hospital between  that  of running the curing side, and administrative side..... MDs cure, managers manage  And thus she  was able to turn around Makati Med.

   Some MDs management run hospital on basis of democracy ie giving management responsibility to those whose expertise are  more or less in the MD side. and infighting or mismanagement allowing to prospper

  Some take up MBAH or even had MBA MD degree.  Let us just see what is going to happen in the long term.

How come some of my posts are already references for certain topics?

I now realize that bloggers do much to increase the content of the web. When we research some items, it turns out that our very own work are on top of the list as reference.  For instance, asI did the presentation on Vision Mission formulation, I researched on:

1.  Rose Montenegro Reyes of Makati Med (on hospital turn around)  (Prof Jorge at Ateneo)

2.  Dr. David Shetty and Narayana Hospital in India  (at cheapcures site)

my previous post were at the top of Google Search.  Wow.  Little research goes a long way.

Do these contribute to rise of AGSB ranking?  My skills as part of the faculty?

How Rose Turned Around Makati Med

Room 210 APS Building Rockwell Ctr, Makati City   March 16, 2013

Rose Montenegro, the current CEO Makati Med happens to be wife of Mr Joven Reyes, AdeMU College Class 1972 Class Valedictorian, BS Math Major, Harvard Graduate former Senior Manager in various multinational companies :   J & J, Citibank, AIG.  Rose and Joven worked together. Rose studied liberal arts in St. Theresa.

She was drawn out of retirement at ePLDT by Manny V Pangilinan who rescued Makati Med.

How did Rose, a non doctor turn around MakatiMed?

Her story of the turn around is like a critical case analysis:   deceptively simple yet deep.

Situation analysis:   There was no system and procedure on critical success factors:   quality, customer service, logistics, IT, billing and accounting.  The building was old and so with the hospital equipment;  IT was topsy turvy.  There was a culture of entitlement.   The doctors who own the hospital were running the show:  they were very good in being doctors ie doing the medical profession but did a poor job of running the hospital (it ran out of cash at the time MVP bought it).  There was culture of entitlement:  no procedure of logistics;  hr was elementary.

It was in a tight competitive situation form SLMMC and TMC

On the positive side:   it had nice location  -  CBD.  The nursing services was superb.  The doctors were the best in their specialty.  It had a brand name.

Problem:   It did not have financials too;   was losing money (it had a union, maybe a feisty and demanding too

Her options:  there was only one - to bring it shipshape;  to turn it around.  To make the hospital competitive and make money.

Her solution:

The first phase of her solution was to attack the hard issues:   infrastructure,  systems and procedures, operational efficiency.     Her term was pick your battles where you can win and where you can make an impact on.  She was a systems person and felt her task was cut for her being a six sigma practitioner. She brought with her IT, finance experts (15 in all) to bring Makati Med in order)

She reorganized Makati Med into matrix management:    dividing work between medical and corporate.  The task of running the hospital was divided into two:   medical and corporate management -  accounting, IT logistics, safety quality,  building management.  Some specifics:

l.  Bought new equipment eg filmless radiology, automated diagnostic lab equipment, latest for oncology, chemotherapy.
2.  Refurbished the building:   new look, new paint, solar energy,  scenic elevators
3.  Streamlined purchasing, inventory (used bar codes), IT (one system) upgraded telephone and computer system;    the cash collection and  drugstore were outsourced (the drugstore to the cooperative - vat and income tax free) so that drugs are competitive with Mercury.

Results:    Makati Med now looks beautiful;  it makes money.  It would have done more without the following constraints:    senior citizen discounts, the free medical benefits to all the doctors and staff of MMC (provided for by CBA), the ER losses on treat first, without deposits requirement of the law.    Just the two would account for hundred million pesos.

                                  Rose and Dra Elsie

                               Joven, and Rose

                              Dr Erick, Rose and Dr. Tim

Three Great Guests at MBAH 10B Entrep Class Today

Room 210, APS Building, Rockwell Center, Makati City PHL   | March 16, 2013.

 Prof Jorge  and class in group picture with Mr. Joven Reyes, Dr. Eric Schulze, Rose Montenegro and Dr. Elsie Dimaano, Class President.

Three great guests came to the MBAH 10B entrepreneurship class today:   Ms. Rose Montenegro, CEO of Makati Medical Center,  Dr. Eric Schulze an expert in Teleradiology,  and Mr. Jose Paolo Molina Accounting Manager of Emperador Brandy.

Ms. Rose was most passionate and amazing in her presentation of the turn around of Makati Medical Center (when she is supposed to be retired). This she accomplished, despite being a non doctor, proving that your expertise can be applied in other field.  Rose came with her husband, Joven, the class valedictorian, summa cum laude of Ateneo College Class l972 (a classmate) a Harvard Graduate, and now COO CFO of SBMA.  (He is turning around SBMA)

Rose was most entrepreneurial in applying innovation to Makati Medical center - to processes, and simple things like lighting, furniture, mural on top of a roof, waiting area  -  things that count most to customers (having come from consumer goods and financial services companies.  She was responsible for phone banking at Citibank, which was a novelty for banking at that time it was launched)

Just by working on infrastructure and and processes she was able to ramp up revenues of  MMC;  the second phase of the restructuring, the soft issues is now underway.

 Rose and Prof Jorge Dra Elsie,  Dra Judz, Dra Thea, Dra Hope and Dra Miranda present token flowers, and certificate to the MMC CEO.

Dr. Eric Schulze of Telerad.Asia being presented Certificate of Appreciation and tokens by the sponsoring group:   Danae, Dr. Janice, Deo, and Roslyn

JP Molina, an Accounting Manager for Emperador Brandy was given a certificate of appreciation by the Class for explaining very slowly and clearly how to use the financial spreadsheet for FS projections for business plan and strama.

Prof Jorge holds continuiing business entrepreneur fora

APS, Rockwell, Makati PHL  |  March 13, 2013

Opeman and Finance held consecutive business forum yesterday and today;   Opeman held the manufacturing revival  which featured Former Usec Cristino Panlillo today;   Finance held the Taxation forum yesterday which featured BIR tax commissioner Kim Henares.

Ms. Rose Montegro is Entrep Guest this Saturday March 16, 2013

On Saturday, March 16, 2013,this coming Saturday,   Makati Medical Center CEO Rose Montenegro will speak before the MBAH 10 B class on her role at the MMC turn around.  She was invited by Dra. Gina Nazareth of the same class.  I hope the class will invite other friends and other MBAH batchmates.

This the entrep forum under Prof Jorge at Ateneo

MBAH 10 class and the Sentrep Class will bring to the class entrepreneurs who will speak on how they became entrepreneurs, their challenges, and words and wisdom for entrepreneur wannabees.

Prof Jorge MM Entrep Class held Social Enterpise forum on 150th Year of Ateneo

ProfJorge and his entrep class conducted the memorable Social Enterprise Forum during the l50th year of Ateneo. at the APS auditorium last May 21, 2009.  An MBAH class of Prof Jorge held a forum with  Dr. Vicky Belo a cosmetic surgeon and entrepreneur.  I remember her saying that her vision was to make every Filipina beautiful

 I even   emceed first Larry Farrell's visit at Ateneo Gradduate School of Business  in July 2011

Schedule for next Saturday, March 16, 2013

Angono, Rizal   PHL   |  March 9, 2013

                               JP Molina at my back, future Finacc Professor at AGSB?

What significant event took place on March 16 400+ years ago?

This Saturday, I understand we hold the usual PM class and our schedule shall be:  2 entrep guests, some more discussions on bp and other left subject matters. And financial.  I have invited a Sentrep student, JP Molina a CPA, and an accounting manager for a wine company, to help the class navigate the accounting spreadsheet, and review the finance and accounting lessons/principles.

Dra. Gina promised to invite Rose Montenegro of Makati Med to be the Entrep Guest on the last Day to talk on how she turned around MMC despite being a non Medic. She is a Six Sigma black belter though.   I look forward to that. She is married to an AdeMU schoolmate way back -  our class Valedictorian

                                 Is Rose going to be our guest on the last day?