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  1. 1. Josh Murray, Katie Dudley, Joe Sauer, and Bryant Baker<br />JV: Health Spring & St. Luke’s<br />
  2. 2. Purpose of Venture<br />Health Spring and St. Luke’s Medical Center in the Philippines<br />Create a JV with Health Spring acting as a medical tourism facilitator in partnership with SLMC<br />Take advantage of a growing market to enhance our business and that of SLMC<br />
  3. 3. Why this makes this an attractive option for Health Spring?<br />Economic: rising healthcare costs; entitlements a focus for budget cuts<br />Demographic: Baby Boomers retiring; increasing # of people on Medicare<br />Geographic: Philippines location to U.S., ties to U.S.; infrastructure already in place at SLMC, English-speaking population<br />
  4. 4. What does Health Spring stand to gain?<br />Tremendous cost savings, 20-80% depending on the procedure; infrastructure already in place<br />Business expansion: medical tourism facilitator; increased client base<br />Market share, get ahead of competition in medical tourism<br />Possible long-term partnership with SLMC, Philippines<br />
  5. 5. What does SLMC stand to gain?<br />Enhanced reputation as premier medical tourism destination in East Asia, world<br />Hire more doctors, nurses to cater to increased demand for services<br />Access to US insurers, possible long-term partner<br />Increased revenue due to new patients<br />
  6. 6. Health Spring Long-Term Vision<br />Current focus on Medicare, Medicare Advantage, prescription drugs<br />Focus on wellness and preventive care; “Physician Partnership”-partner members with doctors and nurses for personal care<br />Establish ourselves as a Medical Tourism facilitator; partner with travel companies<br />
  7. 7. SWOT<br />
  8. 8. Joint Venture Considerations<br />Collaborative <br />Legal<br />Human Resources<br />IT<br />
  9. 9. St. Luke’s Role<br />Infrastructure<br />Staff<br />Services <br />
  10. 10. Health Spring’s Role<br />Policy Accommodation.<br />Sales Training.<br />Billing.<br />Local Staff. <br />
  11. 11. Leverage Board Experience and Hire Locally<br />
  12. 12. Reasons For Local Resources<br />Wage rate variance - Example VP Operations <br />$170K salary (US) vs $68K fully burdened (PH)<br />Relationships play key role in business<br />English is primary medium of instruction<br />Executive Order 210<br />Minimal knowledge transfer barrier<br />Risk mitigation<br />Board approval for executive hires<br />
  13. 13. Board of Directors<br />Six members<br />Small group eliminates unnecessary bureaucracy<br />Three executives from each parent company<br />Equal representation<br />Unanimous decision making process<br />Balance of power<br />
  14. 14. Board Members From St. Lukes<br />Jose F.G. Ledesma – CEO<br />Employed by St. Luke’s since 1981<br />Joven R. Cuanang, M.D.– Chief Medical Officer<br />International advisory board for IMWell Summit<br />Founded Stroke Society of the Philippines<br />Edith M. Simeon – CFO<br />International banking experience<br />
  15. 15. Board Members From HealthSpring<br />Herbert Fritch - CEO <br />35 years experience in HMO and physician management<br />J. Gentry Barden - General Counsel<br />Corporate and securities lawyer<br />Seven years merger and acquisition experience<br />Dirk O. Wales – Chief Medical Officer<br />11 years experience as an officer<br />
  16. 16. Three Year Plan<br />Year One<br />Establish relationships with luxury hotels and transportation services<br />Begin Promoting the option of medical tourism to existing customers and doctors that are covered by Health Springs<br />
  17. 17. Three Year Plan<br />Year Two<br />Do public broadcast of the availability of medical tourism in the Philippines to attract new customers to join Health Springs.<br />Work with St. Luke's Hospital to make sure they have high class medical equipment to promote the excellent medical care offered at the hospital. <br />
  18. 18. Three Year Plan<br />Year Three<br />Review the financials from the last two years and create cash flow analysis to determine if the IJV is viable for a long term partnership. <br />
  19. 19. Risk Factors<br />Travel<br />Foreign Nationals Cannot Own Land<br />Corruption in the Filipino Government <br />Uncertain and Inefficient Judicial System <br />
  20. 20. Questions?<br />
  21. 21. References<br />Brandon, Emily. (2010, Feb. 16). 10 Ways Baby Boomers Will Reinvent Retirement. Retrieved from<br /> 2/16/10-ways-baby-boomers-will-reinvent-retirement <br />Einhorn, Bruce. (2008, March 13). Outsourcing the Patients. Bloomberg Businessweek. Retrieved from<br />Kasier Family Foundation. Medicare Now and in the Future. Retrieved from<br />Mitchell, Deborah. (2009, Aug. 23). Health Insurance Companies Promoting Medical Tourism. Retrieved from<br />Mueller, Megg. (2010, April 6). That’s the Ticket: Insurance for Medical Tourism. Retrieved from /articles/healthinsurance /medical-tourism.html<br />
  22. 22. References<br />Mueller, Megg. (2010, April 6). That’s the Ticket: Insurance for Medical Tourism. Retrieved from /articles/healthinsurance /medical-tourism.html<br />Porter, M., De Vera, M., Huang, B., Khan, O., Qin, Z., & Tan, A. (2008). Medical Tourism in the Philippines.<br />St. Luke’s Medical Center. General website. Retrieved from<br />Doing Business in the Philippines: 2010 Country Commercial Guide for U.S. Companies. Retrieved from<br />Does FAA provide safety oversight for international flights? Retrieved from<br />
  23. 23. References<br />Cuanang, Joven R. "Message from the Founding President." Stroke Society of the Philippines. Web. 15 Mar. 2011. <>. <br />"Doing Business in the Philippines -- U.S. Commercial Service Philippines." Home -- U.S. Commercial Service Your Global Business Partner. Web. 15 Mar. 2011. <>. <br />Experience');document.write(', Years. "PayScale - Vice President (VP), Operations Salary, Average Salaries by Hospital Setting." PayScale - Salary Comparison, Salary Survey, Search Wages. Web. 15 Mar. 2011. <,_Operations/Salary/by_Hospital_Setting>. <br />"HealthSpring - More from Medicare. More from Life. | Investor Relations | Corporate Governance - Management." HealthSpring - More from Medicare. More from Life. | Investor Relations | Investor Overview. Web. 15 Mar. 2011. <>. <br />"IMWell Summit." Philippines The Heart of Asia. Web. 15 Mar. 2011. <>. <br />
  24. 24. References<br />"Joe Ledesma Speaker :: Healthcare Reform Conference." Home Health Care Reform Summit. Web. 15 Mar. 2011. <>. <br />"The Manila Times Internet Edition | OPINION Mother Tongue as Medium of Instruction." The Manila Times Internet Edition | September 23, 2009. Web. 15 Mar. 2011. <>. <br />PayScale - Salary Comparison, Salary Survey, Search Wages. Web. 15 Mar. 2011. <>. <br />"PayScale - Salary Search: Job." PayScale - Salary Comparison, Salary Survey, Search Wages. Web. 15 Mar. 2011. <>. <br />"PayScale Philippines - Vice President (VP), Operations Commute Time Survey." PayScale - Salary Comparison, Salary Survey, Search Wages. Web. 15 Mar. 2011. <,_Operations/Commute_Time>. <br />