Exercise prudence in dealing with any individuals or groups of persons offering the sale of shares of stocks in hospitals.
The Securities and Exchange Commission (SEC) gave this warning in its advisory issued early this year to warn investors about this kind of transaction that might cause problems to investors.
The SEC said that these individuals or groups, to attract investors, entice them that they will be given certain hospital benefits like waived or discounted OR fees; free or discounted private room, ward, and ICU accommodations; discounts on use of ICU equipment, medicines, medical supplies; and discounts on hospital services and out-patient and in-patient case rates.
The SEC said that these groups or individuals must first secure a permit or registration from SEC before being able to do so.
“Thus, a pending application for registration without approval of the Commission does not give Hospitals the imprimatur to issue such shares of stock,” the SEC advisory said.
The SEC said that these groups or individuals must first secure a permit or registration from the SEC before being able to do so.
SEC also specified in the advisory that there are only two medical facilities in the country that are authorized to do this.
These are the Diliman Doctors Hospital and St. Lukes Medical Center – Global City.
“In view thereof, the public is thus advised to exercise prudence in dealing with any individuals and / or groups of persons offering for sale shares of stock in hospitals and urges anyone who has knowledge or information about any transaction involving these securities to report such activity immediately to the Commission so that appropriate measures can be taken to protect their interest,” the SEC advisory read.
Complainants of a civil case against a hospital set to open in the middle of the year in Cebu claimed that they only learned of this SEC advisory in the course of gathering documents to bolster their complaints.
Five shareholders are filing two civil complaints against the management of Allied Care Experts (ACE) Medical Center Inc.-Cebu to give them rights as shareholders of the facility. (See separate story)