Ayala Group adds FEU-NRMF to growing hospital portfolio

MANILA, Philippines — The Ayala Group, through Ayala Healthcare Holdings Inc. (AC Health) has signed an agreement to manage a 300-bed university hospital in Quezon CIty.

AC Health, through its hospital and clinics arm, Healthway Medical Network (HMN), and the Far Eastern University-Dr. Nicanor Reyes Medical Foundation Inc. (FEU-NRMF), announced their partnership. Under this collaboration, HMN will manage hospital operations on behalf of FEU-NRMF.

The partnership comprises a management agreement of up to 24 months starting January 2024, which will be followed by the full turnover of hospital operations through a 35-year lease agreement.

Under the initial management agreement, HMN will have oversight over clinical, financial, and administrative operations. The interim management period is expected to facilitate the smooth transition of FEU-NRMF operations to HMN.

“We are thrilled to welcome FEU-NRMF in our growing network of hospitals and clinics. By leveraging FEU-NRMF’s technical and academic expertise, we hope to deliver a better healthcare experience to our patients,” said AC Health president and CEO Paolo Borromeo.

AC Health and FEU-NRMF agreed to leverage each other’s strengths to deliver better patient care to Filipinos.

Juan Enrique Reyes, president and COO of FEU-NRMF, said they are happy to be added to the list of partners of the country’s oldest and largest conglomerate.

Increasing competition in the hospital industry prompted FEU-NRMF to collaborate with Ayala, he said.

“Seeing how they have built a vertically integrated system of hospitals in less than 10 years, supported by a robust network of mall-based and corporate clinics, pharmacies, and digital health has been remarkable. We look forward to learning from the best and tapping their operational expertise to provide better opportunities for our patients, people, and students,” said Reyes.

Founded in 1955, FEU-NRMF Medical Center was originally established in Morayta, Manila to serve the healthcare needs of the community and provide training for the students of the Institutes of Medicine and Nursing.

The hospital then relocated to Fairview in 1999 because of the scarcity of hospitals and the growing demand for education in the Fairview area.