SEC urges private hospitals to tap capital market funding
The Securities and Exchange Commission (SEC) is urging private hospitals to tap the capital market to support expansion plans, as the country grapples with an acute shortage of health-care facilities and hospital beds.
In a statement on Monday, the SEC said it was backing the government’s push to improve access to quality health care by encouraging hospital entrepreneurs and administrators to raise funds through the capital market instead of relying solely on traditional financing.
The call was made during a conference held on Nov. 25 at the SEC headquarters in Makati City.
The event brought together medical professionals and entrepreneurs to promote the Commission’s Securing and Expanding Capital for Hospital Entrepreneurs (SEC HOPES) program.
Launched under SEC Memorandum Circular No. 11, Series of 2017, SEC HOPES aims to make it easier for hospitals to access funding by simplifying and speeding up the registration process for securities offerings intended to finance the construction and expansion of health-care facilities.
Under the program, the SEC shortened the review period for hospital securities registration to 28 days from the standard 45 days through the use of a simplified registration statement.
SEC Chair Francis Lim said the sector’s financing needs continue to grow, particularly as hospitals seek to expand capacity, upgrade facilities, and improve service delivery.
