DOH cites reasons for the termination of PPP agreement with Megawide on Phil. Orthopedic Center modernization

November 19, 2015 11:39 am 

By Leilani S. Junio

MANILA, Nov. 18 (PNA) — The Department of Health (DOH) cited on Wednesday some of the reasons behind the termination of the Build-Operate-Transfer (BOT) Agreement with Megawide World Citi Consortium Inc. (Megawide) on the modernization of the Philippine Orthopedic Center (POC) in Quezon City.

DOH Secretary Janette L. Garin admitted that there was a failure on the part of DOH to secure consent from the National Kidney and Transplant Institute (NKTI) management for the use of its land for the proposed Public-Private Partnership (PPP) project.

“While DOH sits in the Board of NKTI, it failed to convince the management of the said hospital to allow the use of their land for the proposed PPP project,” Garin said.

It maybe recalled that the Build-Operate-Transfer (BOT) agreement between DOH and Megawide was signed in March 2014.

The agreement called for planing, designing, constructing and operating a 700-bed specialty orthopedic hospital on the NKTI land located also in Quezon City.

It was also agreed upon that the hospital operation would be reverted to the DOH after the completion of the agreement period.

However, since March 2014 up to when Megawide decided for the termination of the agreement, DOH was not able to issue a Certificate of Possession because the land is owned by NKTI.

Secretary Garin said there were other issues that became a hurdle to the implementation of the project by the DOH.

Among them were the: Displacement of current POC employees; implementation of the PhilHealth (Philippine Health Insurance Corporation) new case rates policy in mid-2014; and difficulty/delay in appointing the independent consultant, "all of which were unanticipated by the DOH and which negatively affected the implementation of the project," the DOH said.

Another factor was the proposed rehabilitation of the hospital that would house the displaced employees of the POC, which is still being deliberated in Congress.

“All of these contributed to the decision of Megawide to terminate the Build-Operate-Transfer Agreement on the MPOC,” the Health Chief explained.

She further said that the DOH cannot abandon its duty of ensuring care for its indigent patients in the Philippine Orthopedic Center if their place of transfer cannot be ensured.

“Furthermore, it will be unfair to expect Megawide to shoulder the cost of caring for our indigent patients, and be obligated to absorb all displaced employees pending approval of a new law in Congress to create the rehabilitation hospital,” she added. (PNA)

SCS/LSJ

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