Sunday, March 17, 2013

How could be a corporate honcho like Rose of MakatiMed be considered an entrepreneur?

Angono, Rizal, PHL by ProfJorgeEntrep  March 17, 2013

Thank you again:   Rose, Classmate Joven, and Dr. Gina Nazareth

 Rose stresses a point;  Joven listens

The least I can do to promote entrepreneurship is to bring them to the class to honor them by letting them share their stories of success and failure with the MBA class, honoring them with certificates, and sharing their stories and their picture at this blogsite.  It may be little effort but the word goes around and the impact may be felt later on:  with the readers of this blog site and or the entrep students.

This is a high leveraged activity of the class group activity and no paper is required for this;  the group gets a 4 for bringing in the entrep guest to the class.  I would say that the speech of the entrepreneurs electifies/ignites the passion in the listeners - to put it mildly.

Last week Dr. Gina mentioned to me that her group would invite Rose of MakatiMed as their guest to which I readily said yes.  Having heard her story last Dec 8, 2012 at the AdeMU grand reunion at the Ateneo High School, and knowing that her story would be a critical knowledge to the owners and administrators of hospitals who are MBAH students, I readily said yes.

Thus she came yesterday  and true enough her story was punctuated by innovation and entrepreneurship:  

On infrastructures:

l.  Simulated lighting by Philips by Philips on windowless rooms;

2.   Panoramic elevators to improve traffic

3.  Murals at the top of lower buidings;

4.  Dividing islands to improve outside traffic flow

5.  Improved lighting at waiting area

6.  New facade and color for the building exterior

7.  New color and furnishing for hospital rooms

8.  Solar powered air con and water heater  (How a solar powered aircon works)

     Solar aircon by California Electronics

9.  New ICT system

10.  Better concessionaires area for benefit of patients

11.  Filmless radiology  (However Dr. Erick, outsourcing the same to the them would be much better)
Filmless radiology  (the article mentions PACS -Picture and Archival and Communications System)

12. Molecular pathology lab,


She steered clear of the mindset of the hotel like accommodations at the hospital because the patient want to be discharged fast and safely (the patient may get infections in the hospital cant he?

On procedures and systems:

1.  Outsourcing collection with banks

2.  Outsourcing drugs to a cooperative (VAT and Income tax free to be competitive with Mercury drugstores;  drugstore would have a reminder to the patient when the prescription needs to be refilled for repeat sales

3.  Bar code for inventory system;

4.  Rationalization of logistics system (supply chain management

 5.  Altering the culture of entitlement

 6.  Call center at MakatiMed

Other new things:

1.  CSR - MoA with Rizal Medical Center

2.  Partnership with provincial hospitals (private and govt? ) for cross referral of patients

N.B.  I have incorporated a number of links on a number of topics to help enlighten the reader on the very new topic

                                Appreciation for Ms. Rose for sharing her knowledge and expertise


 x



I think this the real stuff MBAH should be made of;   learning from the experts. It is seldom you can hear such selfless sharing, passionate engagement with doctors on hard core issues about health and hospital administration.  We wish we had more time.  How I wish we had another semester like this with doctors.

Thus doctors learned more by not spending more and bringing in their guests.  How strategic and how ingenious!



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



Saturday, March 16, 2013

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.