A subsidiary of Metro Pacific Investments Corp. (MPIC), the local unit of Hong Kong's First Pacific Co., will be spending P250 million to operate the Catholic Church-run Cardinal Santos Medical Center (CSMC) in San Juan City.

In a disclosure to the stock exchange on Tuesday, MPIC said its unit Medical Doctors Inc. (MDI) will be using the amount to upgrade the hospital's medical facilities and improve its range of services in its first three years of operation. MPIC owns 32.44 percent of MDI.

Colinas Verdes Hospital Managers Corp. (Colinas Verdes), a wholly-owned unit of MDI, will manage and operate the CSMC. The deal was sealed in a long-term lease agreement it recently signed with the Roman Catholic Archbishop of Manila (RCAM) for a period of 20 years starting March 1, 2009.

“This follows Colinas Verdes’ management of the interim operations of CSMC for six and a half months while RCAM conducted a selection process for the long-term operator,” MPIC said.

MPIC chair Manuel Pangilinan earlier said the agreement with RCAM calls for an investment of at least P750 million for the first 10 years.
 
“MPIC’s involvement in CSMC is another step in achieving its vision of establishing the first nationwide chain of premiere hospitals in the Philippines. This opportunity reflects MPIC’s goal of strengthening the company’s investment portfolio and enhancing shareholder value through healthy operating companies that deliver strong recurring incomes,” Pangilinan said.

MDI owns and operates the Makati Medical Center and the Davao Doctors Hospital, one of the largest tertiary hospitals in Mindanao. This year, it is said to be eyeing to buy two to three more hospitals.