AC Health eyes more mergers

THE healthcare arm of Ayala Corp. is eyeing more mergers and acquisitions (M&A) in 2024 as it seeks to expand its presence across the country, according to its top official.

“We do have a rich pipeline of M&A opportunities that we are looking at around the country across our group — hospitals, clinics, pharmaceuticals,” Ayala Healthcare Holdings, Inc. (AC Health) President and Chief Executive Officer Paolo Maximo F. Borromeo told reporters last week.

Jaime E. Ysmael, Healthway Medical Network chief executive officer, separately told reporters they expect two to three M&As. Healthway Medical Network is the unified hospital brand of AC Health.

“We want to be the majority (owner) or at least have a path to majority (ownership) at some point in time,” he said. “But it should be chunky investments.”

AC Health now has six hospitals after inaugurating the Healthway Cancer Care Hospital in Taguig City and partnering with the Far Eastern University-Nicanor Reyes Medical Foundation for the management of their university hospital.

Aside from M&As, Mr. Borromeo said AC Health is also keen to participate in public-private partnerships (PPP), adding that the company may bid for the P6-billion University of the Philippines-Philippine General Hospital Cancer Center.

“Where there are opportunities for us to participate via PPP, we will do it, as we are looking at participating in the PPP of the PGH Cancer Center,” he said.

The center, which is touted to improve the PGH cancer facility, will have a 300-bed capacity. The awarding and signing of the contract for the cancer center is set for this quarter.

Mr. Ysmael said smaller PPPs with local government units would also be explored. “We’re also looking at smaller PPPs with LGUs, either to manage their dialysis centers or even their ambulatory centers. These are smaller PPPs are more meaningful because we’re helping them to improve their healthcare system.”

AC Health’s portfolio includes the pharmacy chain Generika Drugstore, pharmaceutical importer and distributor IE Medica and MedEthix, multi-specialty clinics, ambulatory centers and full-service hospital network Healthway, and healthcare aggregator app KonsultaMD. —