UNDER PPP SCHEME: Iloilo opens hemodialysis center project to competitive proposals

ILOILO — Seeking to bring life-saving dialysis services closer to underserved communities, the Iloilo provincial government is inviting local and international firms to submit comparative proposals for the establishment and operation of hemodialysis centers in 13 government-run hospitals across the province.

This move follows the recent approval by the Sangguniang Panlalawigan of Provincial Ordinance No. 2025-340, which authorizes a Public-Private Partnership (PPP) arrangement for the project. The ordinance, passed on third and final reading, also grants authority to the governor to enter into lease agreements with private partners, in line with the national PPP Code and its implementing rules.

Initially proposed by Panay Medical Ventures Inc. (PMVI), a subsidiary of the Ayala Group of Companies, the project will now undergo a comparative proposal process in accordance with PPP guidelines, allowing other interested parties to challenge the unsolicited bid.

Under the PPP arrangement, the provincial government will lease designated spaces in the Iloilo Provincial Hospital and 12 district hospitals for a period of 10 years, renewable based on performance and compliance with health standards.

The project will be rolled out in two phases: seven hospitals in Phase 1 to be operational within six months of the Notice to Commence, followed by six more hospitals in Phase 2 to be completed within nother six months.

The private partner will shoulder the full cost of establishing the dialysis centers, including the supply and installation of hemodialysis machines and auxiliary medical equipment.

They will also be responsible for operations, staffing, maintenance, and ensuring compliance with Department of Health regulations and PhilHealth quality standards.

Dialysis services must be delivered at the prevailing PhilHealth reimbursement rates. In return, the partner will pay monthly rental fees to the provincial government—₱500 per square meter for building space and ₱200 per square meter for land—net of taxes, with a 5% annual escalation starting in the second year.

Gov. Arthur Defensor Jr. welcomed the PMVI proposal, acknowledging that the provincial government lacks the financial capacity to independently establish hemodialysis centers in each hospital.

“The establishment of dialysis centers in the municipalities is very important. It will reduce the need for our constituents to travel to Iloilo City for treatment and will also help decongest our dialysis facilities there,” Defensor said.

The project aligns with the province’s broader goal of improving rural healthcare access, especially for chronic kidney disease patients, and fostering sustainable health partnerships through innovative financing mechanisms./PN

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