Strategic management: United Doctors Medical Center (UDMC)

• Main Author: Enatsu, Edita F.
• Format: text
• Language: English
• Published: Animo Repository 2007
• Online Access: https://animorepository.dlsu.edu.ph/etd_masteral/4531
• Institution: De La Salle University

UNITED DOCTORS MEDICAL CENTER (UDMC) is a private corporation established in 1975. It is strategically located in the boundaries of two very progressive cities in the country, Quezon and Manila. It owns an 11 storey building and operates a 175 bed capacity tertiary hospital and a school offering Bachelor of Science in Nursing and others. In 1988, the corporation was at the brink of foreclosure due to its indebtedness to the Development Bank of the Philippines. A new group of investors came in and saved the corporation for foreclosure. The name of the companys peakes of its priary business that is health care. To deliver quality health re, the new management upgraded its facilities and medical equipment. Several pieces of state-of-the-art medical equipment were purchased. Management implemented a revamp in the value chain, streamlining of operations. The majority stockholders, whose primary reason for investing in the Philippines was to promote their advocacy to help the marginalized sector of the Philippine society, introduced a socialized pricing scheme for health care. And after 3 years, from a deficit of P57 million, UDMC was turned around. UDMC espoused technological advancement and for some time enjoyed first mover advantages when it installed the first in the Philippines ever used - three- dimensional sonography machine, and the first CT Scan machine all brand new. The first wireless ICU monitoring system in Asia was installed in UDMC. It also revolutionized hemodialysis system allowing it to implement its socialized pricing scheme for hemodialysis services. This was copied by many groups which led to the mushrooming of hemodialysis centers in the Philippines. With UDMC installing 19 brand new hemodialysis machines offering treatments at very affordable rates, patients from the metropolis and nearby provinces lined up for the service. With UDMC's pioneering moves in medical technology and pricing policy, patients flocked to UDMC. The ailing hospital was able to get back of its feet, from a deficit of P57 million, UDMC was tired around. UDMC continued to purchase state-of-the-art equipment in its effort to help the doctor in diagnosing the patient's illness most expeditiously and accurately. Despite the heavy toll on capital and operational expenditures, UDMC continuously endeavored to realize its avowed mission of offering medical services affordable to all. But relying only on income from operations, the revolutionary advances i technology across a broad front and the changes in the macro environment made it hard for the hospital to support its mission. The continuing changes i the market challenged UDMC to come up with strategic plans to keep the business going and its mission realized.