SEC urges private hospitals to tap capital markets for expansion

THE Securities and Exchange Commission (SEC) is urging more private hospital operators to tap the capital market through the Securing and Expanding Capital for Hospital Entrepreneurs (SEC HOPES) program to support their expansion needs.

As of date, 18 private hospitals have registered under SEC Memorandum Circular No. 11, or SEC HOPES, since its issuance in 2017, with total registered shares amounting to P19.95 billion and a total issue value of P17.05 billion.

“While the public sector continues to lead major investments in infrastructure and service delivery, the private sector plays an equally important role — especially in areas of healthcare where there is a strong business case for expansion,” SEC Chairman Francisco Ed. Lim said in his opening remarks at a conference in November.

“Public and private investments must complement each other to ensure that Filipinos across the country gain access to safe, modern, and adequate health facilities.”

Mr. Lim said that open and accessible capital markets are essential across sectors, including healthcare.

“By providing hospitals with the ability to raise funds efficiently and transparently, we empower them to modernize facilities, scale operations, and bring quality care closer to communities that need it most,” he added.

The SEC HOPES program streamlines the securities registration process for hospitals seeking to access capital markets to fund healthcare facility construction.

It shortens the Commission’s review period to 28 days from the standard 45 days through the use of a Simplified Registration Statement (SRS).

The Commission said improved access to capital will help address the country’s hospital shortage.

“Currently, the hospital bed-to-population ratio stands at 0.5 beds per 1,000 population, which should be raised to 2.7 beds per 1,000 population to meet the country’s rising healthcare demands, according to the Department of Health’s Philippine Health Facility Development Plan 2020-2040,” the corporate regulator said in a statement on Monday.

The November conference brought together medical entrepreneurs and healthcare professionals for discussions on SEC HOPES requirements led by SEC Commissioner McJill Bryant T. Fernandez, along with representatives from the Markets and Securities Regulation Department, the Company Registration and Monitoring Department, the Financial Analysis and Audit Department, and the Office of the General Accountant. — Alexandria Grace C. Magno