U.S.T. MEDICINE 1967
FOUNDATION, U.S.A., INC.
The non-profit organization of U.S.T. Medicine Class of 1967
(Forwarded by Dr. Rolando Cabatu to Dr. Eustaquio Abay (Board Member, USTMAAAF) on February 23, 2007 in response to Dr. Abay's inquiry.) |
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Kuya Rolly,
Thank you for forwarding the message of Dr. Abay to me. Your communication shall have unloaded my already overly congested schedule these coming weeks.
The issue is already 3 years old. It really shows how lasting a set of lies can survive when the source is from within (meaning from some priests, medical staff and alumni rumor mongers). Truly, the greatest enemy of the Church comes from within. And our alumni are blameless for they are merely recipients of such lies or half truths. Be that as it may, we owe them the truth which was apparently missed by Dr. Abay and the others when I sent you there to speak before the USTMAAA in 2 occasions last 2005 & 2006. Let us respond to his specific comments and questions paragraph-by-paragraph instead.
"As you probably know, much controversy has arisen from the changes that has transpired at the UST hospital. From where we are, all we hear is second hand information. It has been confusing.”
An acknowledgement like this most certainly is seeking the truth (which is very Thomasian) in contrast to some previous letters from other alumni whose overtones were outright accusative, insulting, offensive if not contemptuous. I am glad that this Thomasian is seeking the truth from the real source. The least you could do for him is to let him know and even see for himself the truth and its outcome. Dr. Abay, being a wise administrator and furthermore one who is not only a physician but also possessing an excellent business sense, he may have a wider latitude of understanding and deeper grasp of the situation.
“I simply would like to know what the facts really are and how these changes have actually affected the UST Hospital, The Clinical Division or Charity Hospital and The faculty of Medicine and Surgery.”
The greatest paradox of this situation is that our alumni, Dr. Abay for example, is asking you and I who are in the Hospital whereas the very action of spinning off the Hospital from the University emanated (and can only emanate) from the University of Santo Tomas Board of Trustees – the only body and highest policy-making body of the University – that is capable of instituting this action. The Hospital as a separate legal entity after that legal action of the University is but the daughter or product not its own maker nor author. Is there hesitation to ask the UST-BOT? Or, is there doubt to their capability to answer? Nonetheless, we always dare to answer their questions for we are the ones always being asked by the alumni not the 15 Dominican Priests who sit in the UST-BOT.
Before answering the questions and forwarding my comments, as usual, I should start from what the alumni knew. So, I ask a few questions such as these:
1. Do you have an idea what was the financial state of the UST Hospital before 2004? 2. Do you have an idea on what is happening to the training programs of USTH during the 10 prior years?
3. Do you have an idea on what is happening to the occupancy rate of the Clinical Division (the training, educational and research division) of the Hospital?
4. Do you have an idea on what is the level of subsidy per charity patient is receiving per Peso?
5. Do you have an idea what was the occupancy rate of the Pay Division of the Hospital during prior years to 2004 which is the only source of subsidy of the Clinical Division?
6. Do you have any idea at all on what was/were the reasons why in a period of 7 years (1996-2003) turnover rate of the Hospital’s senior management is 5 times?
7. Do you have any idea at all on what was the recommendation of the Cabanda Financial Audit and Report? Do you know that the recommendation is to close down the Hospital to save the University from hundreds of millions of continuing losses?
8. Do you know what drove the UST-BOT to desperately but prudently decided to spin off the hospital from the University?
9. Do you know that the Clinical Division is made up of 460 beds and the Pay Division is only 310 beds? Do you know that this ratio under current economic situation cannot possibly financially survive?
10. Do you know that the total external funds, meaning donated funds to the Charity Division by generous alumni is no more than 4% per annum of the gross subsidy to it?
11. Do you know that the annual operational cost of the Clinical Division with 460 dedicated charity beds is about Php 110M at 50% average occupancy rate?
12. Do you know that 95% of the subsidy of the Clinical Division is coming from the Pay Division and not from any part of the tuition fees of the medical and nursing students?
13. Do you any idea on what is the organization of the UST Hospital?
14. Do you know what was the functional organization that ran the Hospital vis a vis the Hospital? Do you know how many levels of bureaucratic approval a simple request from the Hospital will have to go through?
15. Do you know that because of such organizational inefficiency it may have contributed greatly in the collapse of the system?
16. Do you know that upon audit of the Hospital’s systems and processes, both administrative and operational, there was a severe dearth of information?
17. Do you know that since 1996, the UST Hospital has an accumulated losses of over Php 250 M, outstanding unpaid loans of over Php 80M and as of April 2004 almost all suppliers have blocked off their credit lines?
18. Do you know that upon financial audit, the Hospital has bank accounts are virtually empty?
19. Do you know that the 3-storey unfinished pharmacy building (5 years in construction) during the incumbency of Dr. Tito Torralba as medical director, is an illegal building – its design does not confirm with the building code of the Philippines? 20. Do you know that upon audit of major hospital equipment, UST Hospital before 2004 was only 42% updated (or more appropriately not updated)?
21. Do you know that due to anomalies of past administrations UST Hospital stand to pay the Philippine Health Insurance Corporation (PHIC) tens of millions of Pesos?
22. Do you know that the Bureau of Internal Revenue (BIR) had already issued a final notice of garnishment to UST and to UST Hospital due to past tax liabilities to the tune of Php 1.2 B (this amount is twice the net worth of the entire Hospital and its occupied land)?
23. Do you know about the results of the MetroManila wide survey on patronage and healthcare market among all major hospitals in MetroManila in 2003, UST Hospital was not even in the top 10? Do you know that it was dominated by St. Luke’s, Cardinal Santos, The Medical City, Chinese General Hospital, Capital Medical Center, Manila Doctors and others?
24. Do you know that majority of those who are excelling in the other medical centers beside UST Hospital and therefore are major contributors to their institutional success are our alumni?
25. Do you know the true reasons why they are elsewhere than in UST Hospital in the Philippines?
26. Can you account why such a preeminent institution with such preeminent staff failed to grow during the last 30 years?
27. Do you know why this unfortunate fate happened to your alma mater? And Hospital?
28. Has any of these foregoing information prior to 2004 reached any of our alumni?
29. Did anyone of those who provided Dr. Abay the so-called second-hand information also provide this information?
30. Do you know that the University Board of Trustees, finally fed up with the down spiraling trend of the Hospital, through the gallant and saving action of the members, decided to shift paradigm: recognized the difference between school management and hospital management, good corporate governance, streamlined organization, transparent, accountable & responsible administration, efficiency in operation, strategic relations, Vision-guided profit and gain, and admitting that they cannot possibly give what they do not have?
31. Do you know that up to this time, the Clinical Division is still 95% subsidized by the Pay Division, not by the tuitions fees or affiliation fees of any of the medical, nursing, medical technology, pharmacy, physical therapy or occupational therapy students?
If Dr. Abay can answer at least half of the foregoing questions, then he may be able to understand and appreciate the facts which are actually the answers to his questions. But if not, like most if not all of the alumni who asked the same questions before he did, then the likelihood is he may not appreciate the facts, and more importantly the reasons behind the facts, to the full.
1) The USTH, Inc., a private, for-profit management company, distinct and separate from UST,was registered and incorporated with SEC, by Twelve Investors: nine Dominican priests, two physicians, and a lawyer; each putting up P100,000.00 of their own personal funds.
USTHI is a non-stock, non-profit corporation, registered under the SEC where the biggest institutional contributor-member is UST. As such its By-laws declares that 9 out of 12 Board seats must be represented by priests from the Order of Preachers, and such priests must be assigned in UST. The 9 Dominican Priests and the three laymen incorporators have been duly elected by both the UST Board of Trustees and the members of the UST Corporation which created the new non-stock, non-profit corporation named USTHI. The initial funds of incorporation is UST’s funds held in trust (not personal funds of the incorporators) until incorporated when new donations and endowments are accepted. An internal arrangement provided that the Father Provincial (the Chairman of the Board of UST who is also the Vice Chancellor of UST), the Rector of the University, the Vice Rector of the University, the Vice Rector for Finance and the Secretary General are ex-officio members of the Board of Trustees of the Hospital.
2) UST transfered all the assets of the UST Hospital including the Clinical Division to USTH, Inc. by Deed of Donation.
UST who is the biggest institutional member of USTHI and who occupies majority Board seats of USTHI, upon the spin off by its “daughter” corporation (USTHI), through a deed of donation transferred ownership, control and responsibility of all hospital equipment to USTHI, NOT BUILDING, NOT LAND. The hospital building and land are covered by another agreement between UST and USTHI, which is a lease agreement. This lease agreement is annually renewed for 50 years.
3) UST as lessor signed a lease with USTH, Inc. as lessee, at P400.00 per square foot for fifty years.
USTHI engaged Cuervo & Associates and Asian Appraisal to perform an appraisal of the land, building and equipment of the Hospital as well as the lease appraisal of the same. This appraisal became the basis of the lease rate. As I have indicated, the lease agreement is annually renewed for 50 years.
I, as most of our alumni, simply want what is best for UST Medicine. If anything I would like to help bring about a conciliatory resolution to the controversy.
With all due respect to Dr. Abay and the rest of the alumni in the USA, who kept repeating their chorus that they are doing this because of their avowed love and devotion to their alma mater, the leadership of both the Hospital and of the Faculty of Medicine and Surgery are all alumni of UST medicine. They are no more than alumni than we are. But the difference is that we are the ones toiling in labor and in pain responding to thedesperate call of the alma mater and its owners in order to save it and keep is alive and growing, helpless victim as it is of the past. While others who malign our good names and speak arrogantly against the good things that the University and the Hospital have done simply get away with it. Be that as it may, we blame no one. It goes with the territory, as they say.
A suspicion of alienation of UST properties and assets for self gain is the worst thing any alumni could think of. Gross errors in the process of improving it is insulting because the current leadership is not a bunch of nincompoops. As a matter of fact, they are the ones responsible for the turnaround, preservation and significant improvement in the hospital both in the Clinical and Pay Divisions. The process of separation , turnaround and development has prudently thought of and deliberated upon, professionally guided by finance, legal and advisory outsourced groups, and most carefully implemented by the Board, Administration and managers. This process, no matter how tedious and imperfect, is like any process, it needs to undergo perfection continuously as time and situation necessitate. This is normal economy.
Now, after having answered the questions, please allow me to forward a few rhetorical points to ponder:
1. Who are these harbinger of falsehood?
2. What are their motive/s?
3. Are they saying that they are better than the highest policy-making body of the University?
4. Are they not the former power controllers?
5. What are their vested interests?
6. Are they the priests and doctors who have an axe to grind against the Board of Trustees of the University and of the Hospital?
7. Where they disenfranchised? Are they threatened? Is there an element of greed and envy?
8. Why are they complaining?
9. Growth and change are always difficult. But others have made adjustments for the sake of the institution and common good. Why can’t these people make the same sacrifice as we all are doing?
10. If you say as alumni, you so love and are devoted to your alma mater, are you ready to join us in this sacrifice?
As you know, Kuya Rolly, when we responded to the persistent request of the UST BOT to lay our lives and career on the line (we did not volunteer to take this job or positions) for the sake of the University and the Hospital, we knew that this is going to be Calvary and crucifixion for all of us and all of those who will support this growth and change.
But the least that I expect from the alumni is to grant us who are no less alumni than they are, some level of trust and confidence as we do to them. We are the ground forces and direct defenders of the fort by choice (despite the fact the we are as qualified as they are to leave and succeed elsewhere). We do not benefit materially but rather lose materiallyand reputationally - unintentionally maligned by those who do not really understand but maliciously maligned or perjured by those who have vested-interests. The cleansing process that we did in this institution to resuscitate it back to life was expected to be a very painful process for those who have selfish, vested interests. And they were present in all levels, from the highest to the lowest (priests, sisters, medical staff, administrators, directors, managers, supervisors, and rank-and-file). Somebody had to do this dirty job so that all of us alumni will have somewhere to go home to which we call our alma mater. It must be understood that the real hero in this epic is not you and me. We are but mere lowly instruments of change. The real heroes are the Dominican Priests who are the members of the Board of the University and of the Hospital who have finally (once and for all) fully resolved to change for survival and for the good and the better no matter what. We will certainly lose some of the great men and women in medicine, from our own ranks. Those who will not be able to cope and understand. But history will be our judge. The recent past history of 3 years can not and will not lie. It has shown great progress because of the turnaround and the modest changes that have been introduced. Our alumni have to see it for themselves in order to believe – like the Apostle “doubting” Thomas. Meantime, we should never get tired of proclaiming the truth.
I hope this dissertation, which is certainly a luxury of time as far as my schedule is concerned, will somehow recruit Dr. Abay into the right fold. I am sure that this little additional sacrifice for the sake of the Alumni is worth it.
I will leave for Singapore this Sunday for the Regional meet of hospital CEO’s. Email me your concerns freely.
Dodie
ceo
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