AHI officially began operations in 2002. The 253-bed capacity medical center stands on a 17,258-square meter campus that houses the main hospital and a medical office building. It has over 900 employees and 160 outsourced staff, all trained to provide personalized patient care.

Bumrungrad International (BIL or the sponsor) has through its subsidiary Bumrungrad International Philippines Inc. (BIPI) a contract to manage Asian Hospital, and BIPI is the largest shareholder in AHI with a 32.7% stake. The other main investors include Insular Life (15.4%), Neptune Stroika Holdings Inc. (12.8%), Filinvest (9.0%), Healthcare Delivery Systems (3.6%), and a group of individual doctors led by one of the Hospital’s founders, Dr. George Garcia, a well-known heart surgeon. Dr. Garcia holds a 10.7% stake, while BIL is a 40% shareholder of Neptune Stroika.

BIL was set-up in 2004 as the international investment vehicle of Bumrungrad Hospital Public Company Limited (BH) of Thailand. BH has a strong reputation and has had a long and positive relationship with IFC stemming back to a 1992 IFC loan to help finance the expansion of its main hospital in Bangkok.

BH’s main asset is its internationally accredited, multi-specialty hospital located in the heart of Bangkok. Founded in 1980, today it is the largest private hospital in Southeast Asia, with 554 beds and over 30 specialty centers. BH offers state-of-the-art diagnostic, therapeutic and intensive care facilities in a one-stop medical center. BH is a public company traded on the Thai stock exchange. It derives more than 50% of its revenues from foreign patients, which represent a growing and lucrative market segment. BH was one of the first Asian hospitals to enter the international patients market and it now enjoys significant first mover advantage as a result.

BIL is owned 31.5% by BH, 19.5% by Temasek of Singapore, 19.5% by Istithmar (a Dubai based investment company), 19.5% by Asia Financial Holdings Ltd (a Hong Kong based investment company), and 10% by Bangkok Bank.

The total project cost is estimated at PHP3,056 million. The proposed IFC investment is a PHP1,260 million A loan (approximately $29 million equivalent) to be provided in pesos.

29.39 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	29.39
Equity

* These investment figures are indicative

Asian Hospital is located in the southern Luzon corridor of metropolitan Manila. The hospital is located in an urban area with sufficient access provided to it by near by highways and roads. Its location in the southern portion of Luzon is of particular importance since most other major hospitals are located to the north. Since Bumrungrad’s involvement, the hospital has undergone various initiatives to prepare for its expansion.

AHI’s expansion and upgraded facilities will improve the overall level of healthcare being offered in metro Manila. Increased private sector participation in the Philippines health sector is expected to improve service quality, efficiency and free up the Government’s limited resources for public health care programs.

Specifically, the project will help:

- Expand AHI’s capacity to better serve the local population:

AHI will continue to grow in patient volume with the expected population growth of 7% per annum in the South of Metro Manila. With the emphasis on the working age group outpatient services are expected to increase at a pace greater than 10% and inpatient service to increase at about 4% per year.

- Increasing standards for delivery of health services in the Philippines:

As one of the leading hospitals in the country, AHI is constantly introducing new practices and procedures which the rest of the market is frequently compelled to follow. Based on discussions with the DOH and others, Asian Hospital has already had an evident and positive impact on both public and private hospitals by causing them to improve facilities and services to keep up with AHI.

- Assimilate and disseminate best practices in delivery of health services from a leading global healthcare provider:

This project is a South-South investment and includes significant South-South knowledge transfer from a leading international healthcare provider, Bumrungrad Hospital (BH) of Thailand.

- Attractive employment alternative/stem brain drain:

There is a large out-migration of health professionals from the Philippines. This expansion project will help to retain talent in-country by providing opportunities to work in a world-class health care environment. Currently AHI has over 1,000 registered doctors and 900 employed staff. This will increase with the expansion.

Asian Hospital and Bumrungrad are expected to benefit from IFC’s ability to provide long-term financing and unique sector experience to the project. IFC will provide long-term peso financing that is commensurate with the gradual ramp-up of patients and revenues that Asian Hospital expects. In addition, IFC will play an important role advising Asian Hospital on Project structuring and implementation issues. IFC will leverage its broad experience in private healthcare both in the region and across the world to help Asian Hospital manage its expansion and growth effectively. As Bumrungrad International continues to expand globally, IFC’s worldwide experience in healthcare and its network of contacts provides a valuable resource.

This is a Category B project according to IFC’s Procedure for Environmental and Social Review of Projects because it may create a limited number of specific environmental and social impacts that can be avoided or mitigated by adhering to generally recognized performance standards, guidelines, or design criteria. The review analyzed potential environmental, social, health and safety impacts including AHI''s management capacity to address these issues, emissions to the environment, biomedical and hazardous materials and waste management, labor, occupational health and safety and community engagement.

Performance standards that are applicable for this investment include:

- PS 1: Social and Environmental Assessment and Management System
- PS 2: Labor and Working Conditions
- PS 3: Pollution Prevention and Abatement
- PS 4: Community Health, Safety and Security

Upon successful implementation of agreed mitigation measures, the proposed project is expected to continue to comply with environmental and social requirements as well as applicable World Bank/IFC guidelines for environmental, social and health and safety. The Environment and Social Review Summary (ESRS) has been locally disclosed, and is also available on the internet at: http://www.asianhospital.com/about_us.php