STI Group acquires big stake in Delos Santos Medical Center

The STI Group has acquired a significant stake in Delos Santos Medical Center (DLSMC) for an unspecified amount, thus diversifying STI’s operation from information and communications technology (ICT) education to healthcare.

In a press conference, STI and DLSMC jointly announced the merger of DLSMC with STI’s College of Health Professions, with the combined entity to be known as the DLS-STI Medical Center.

Following the merger, the STI Group is set to pump in an estimated P1 billion to acquire three small hospitals, set up five diagnostic clinics and renovate and expand the existing DLS-STI Medical Center.

STI ExCom chairman Eusebio H. Tan refused to reveal exactly how much STI paid to acquire a "significant" stake in DLSMC. Likewise, he also refused to say how much STI’s share would be in DLS-STI Medical Center except to assure that it would be a "lifetime partnership."

However, Tanco talked about DLS-STI’s future plans for the partnership including the almost P1 billion outlay for acquisition and expansion.

Tanco revealed that negotiations are underway for the acquisition of three small hospitals with bed capacities of 70 to 150.

The STI Group is allocating upwards of P300 million for the hospital acquisitions.

Another P300 million or more is being earmarked for the renovation and expansion of the existing DLSMC facilities along E. Rodriguez Ave. in Quezon City.

The renovation and expansion of the DLSMC would increase its bed capacity from 150 beds to 200 beds. A new operating room would also be constructed.

The renovation of the DLSMC facilities would be immediately undertaken.

Further down the line, Tanco said, the group would also possibly spend another P100 million or so to put up satellite diagnostic centers all over Metro Manila.

The group is also putting up a medical transcription business, Tanco said, that would be integrated with STI’s education facilities.

Another P100 million may be allocated for the medical transcription business.

The DLS-STI partnership, Tanco said, plans a horizontal expansion initially in Metro Manila with future expansions in Cebu and Davao.

In fact, the STI Group has decided to go slow on its previous education expansion plans outside of the country to concentrate instead on the growing local healthcare industry.

The partnership between STI and DLSMC started four years ago when STI acquired a majority share in Delos Santos College in 2002, creating the DLS-STI College of Health Professions.

This time around, the STI Group has acquired a stake in the hospital.

DLSMC started in 1949 as a 25-bed orthopedic clinic founded by Dr. Jose V. delos Santos Sr.

Also present during the announcement of the mergers were STI president and chief executive officer Monico Jacob and DLSMC president Dr. Joey delos Santos and vice president Dondi delos Santos.