The Medical City Chairman Welcomes Court Decision

Pasig, Metro Manila - Dr. Augusto P. Sarmiento, Chairman Emeritus of The Medical City, today welcomed the decision of the Court of Appeals affirming the legality and results of TMC’s election of its current directors and officers. “The Court of Appeals decision allows us to move on with the much-needed task of improving healthcare for Filipinos,” said Dr. Sarmiento. “It is also an affirmation that the principles of corporate governance and shareholder rights must be honored over and above any individual’s desire to hold power after his or her term of office has expired.”

In 2018, the previous board, led by ex-CEO Dr. Alfredo Bengzon, had refused to hold elections even after their terms had expired. Dr. Sarmiento led the efforts to have a special stockholders meeting in September 2018, by rallying doctors and institutional investors to work together to vote in a new board and a new set of officers. The shareholders then elected Mr. Jose Xavier Gonzales as Chairman of the Board and the Board then appointed Dr. Eugenio Jose F. Ramos as Chief Executive Officer of The Medical City. Both Mr. Gonzales and Dr. Ramos were again voted in to their current positions during the regular Annual Stockholders’ Meeting of TMC in June 2019.

Mr. Gonzales also welcomed the court decision, which gives closure to the controversy. “Since we started work at TMC, revenues have gone up, and costs have been managed. The net result is that all our shareholders –including Dr. Alfredo Bengzon --  will see the value of their shares increase. At the end of the day, our job is to make sure that all stakeholders – from our patients all the way to our shareholders - enjoy the benefits of better corporate governance.”

Since taking their posts at TMC, Mr. Gonzales and Dr. Ramos have worked together to improve hospital operations, resulting in a record-breaking P6 Billion revenue in 2019 for TMC's Pasig hospital alone.

The Medical City is only one of a handful of JCI-accredited hospitals operating in the Philippines. Its hospital network includes 5 tertiary hospitals in the Philippines and one in Guam, along with more than 50 clinics all over the Philippines. It has a medical staff of 3,000 physicians supported by over 7,000 support staff. It has been operating for more than 50 years and was founded by a group of doctors including Dr. Augusto P. Sarmiento, TMC’s Chairman Emeritus.