1. Josh Murray, Katie Dudley, Joe Sauer, and Bryant Baker JV: Health Spring & St. Luke’s
2. Purpose of Venture Health Spring and St. Luke’s Medical Center in the Philippines Create a JV with Health Spring acting as a medical tourism facilitator in partnership with SLMC Take advantage of a growing market to enhance our business and that of SLMC
3. Why this makes this an attractive option for Health Spring? Economic: rising healthcare costs; entitlements a focus for budget cuts Demographic: Baby Boomers retiring; increasing # of people on Medicare Geographic: Philippines location to U.S., ties to U.S.; infrastructure already in place at SLMC, English-speaking population
4. What does Health Spring stand to gain? Tremendous cost savings, 20-80% depending on the procedure; infrastructure already in place Business expansion: medical tourism facilitator; increased client base Market share, get ahead of competition in medical tourism Possible long-term partnership with SLMC, Philippines
5. What does SLMC stand to gain? Enhanced reputation as premier medical tourism destination in East Asia, world Hire more doctors, nurses to cater to increased demand for services Access to US insurers, possible long-term partner Increased revenue due to new patients
6. Health Spring Long-Term Vision Current focus on Medicare, Medicare Advantage, prescription drugs Focus on wellness and preventive care; “Physician Partnership”-partner members with doctors and nurses for personal care Establish ourselves as a Medical Tourism facilitator; partner with travel companies
12. Reasons For Local Resources Wage rate variance - Example VP Operations $170K salary (US) vs $68K fully burdened (PH) Relationships play key role in business English is primary medium of instruction Executive Order 210 Minimal knowledge transfer barrier Risk mitigation Board approval for executive hires
13. Board of Directors Six members Small group eliminates unnecessary bureaucracy Three executives from each parent company Equal representation Unanimous decision making process Balance of power
14. Board Members From St. Lukes Jose F.G. Ledesma – CEO Employed by St. Luke’s since 1981 Joven R. Cuanang, M.D.– Chief Medical Officer International advisory board for IMWell Summit Founded Stroke Society of the Philippines Edith M. Simeon – CFO International banking experience
15. Board Members From HealthSpring Herbert Fritch - CEO 35 years experience in HMO and physician management J. Gentry Barden - General Counsel Corporate and securities lawyer Seven years merger and acquisition experience Dirk O. Wales – Chief Medical Officer 11 years experience as an officer
16. Three Year Plan Year One Establish relationships with luxury hotels and transportation services Begin Promoting the option of medical tourism to existing customers and doctors that are covered by Health Springs
17. Three Year Plan Year Two Do public broadcast of the availability of medical tourism in the Philippines to attract new customers to join Health Springs. 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.
18. Three Year Plan Year Three 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.
19. Risk Factors Travel Foreign Nationals Cannot Own Land Corruption in the Filipino Government Uncertain and Inefficient Judicial System
21. References Brandon, Emily. (2010, Feb. 16). 10 Ways Baby Boomers Will Reinvent Retirement. USNews.com. Retrieved from http://money.usnews.com/money/retirement/articles/2010/0 2/16/10-ways-baby-boomers-will-reinvent-retirement Einhorn, Bruce. (2008, March 13). Outsourcing the Patients. Bloomberg Businessweek. Retrieved from http://www.businessweek.com/magazine/content/08_12/b4076036777780.htm Kasier Family Foundation. Medicare Now and in the Future. Retrieved from http://www.kff.org/medicare/h08_7821.cfm Mitchell, Deborah. (2009, Aug. 23). Health Insurance Companies Promoting Medical Tourism. Retrieved from http://www.emaxhealth.com/1275/121/33050/health-insurance-companies-promoting-medical-tourism.html Mueller, Megg. (2010, April 6). That’s the Ticket: Insurance for Medical Tourism. Retrieved fromhttp://www.insure.com /articles/healthinsurance /medical-tourism.html
22. References Mueller, Megg. (2010, April 6). That’s the Ticket: Insurance for Medical Tourism. Retrieved fromhttp://www.insure.com /articles/healthinsurance /medical-tourism.html Porter, M., De Vera, M., Huang, B., Khan, O., Qin, Z., & Tan, A. (2008). Medical Tourism in the Philippines. St. Luke’s Medical Center. General website. Retrieved from http://www.stluke.com.ph/ Doing Business in the Philippines: 2010 Country Commercial Guide for U.S. Companies. Retrieved from http://www.buyusainfo.net/docs/x_9327272.pdf Does FAA provide safety oversight for international flights? Retrieved from http://www.faa.gov/passengers/international_travel/
23. References Cuanang, Joven R. "Message from the Founding President." Stroke Society of the Philippines. Web. 15 Mar. 2011. <http://www.strokesocietyphil.org/files/chapter-1.pdf>. "Doing Business in the Philippines -- U.S. Commercial Service Philippines." Home -- U.S. Commercial Service Your Global Business Partner. Web. 15 Mar. 2011. <http://www.buyusa.gov/philippines/en/doing_business_philippines.html>. 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. <http://www.payscale.com/research/US/Job=Vice_President_(VP),_Operations/Salary/by_Hospital_Setting>. "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. <http://ir.healthspring.com/phoenix.zhtml?c=194529&p=irol-govmanage>. "IMWell Summit." Philippines The Heart of Asia. Web. 15 Mar. 2011. <http://www.philippinesheartofasia.ph/IMWellSummit/contact.html>.
24. References "Joe Ledesma Speaker :: Healthcare Reform Conference." Home Health Care Reform Summit. Web. 15 Mar. 2011. <http://www.healthcarereformsummit.com/speakers/joe-ledesma.html>. "The Manila Times Internet Edition | OPINION Mother Tongue as Medium of Instruction." The Manila Times Internet Edition | September 23, 2009. Web. 15 Mar. 2011. <http://archives.manilatimes.net/national/2008/june/21/yehey/opinion/20080621opi1.html>. PayScale - Salary Comparison, Salary Survey, Search Wages. Web. 15 Mar. 2011. <http://www.payscale.com>. "PayScale - Salary Search: Job." PayScale - Salary Comparison, Salary Survey, Search Wages. Web. 15 Mar. 2011. <http://www.payscale.com/research/US/Job>. "PayScale Philippines - Vice President (VP), Operations Commute Time Survey." PayScale - Salary Comparison, Salary Survey, Search Wages. Web. 15 Mar. 2011. <http://www.payscale.com/research/PH/Job=Vice_President_(VP),_Operations/Commute_Time>.