STRATEGIC-MANAGEMENT-PAPER - Lung Center Philippines

STRATEGIC MANAGEMENT PAPER
on
LUNG CENTER OF THE PHILIPPINES
Submitted to:
Prof. Alejandro P. Bautista, MBA, PhD
Submitted by:
Eileen G. Aniceto, MD
Arianne B. Felipe
Karina D. Gapayao
Krizia Grace C. Ringpis
Strategic Management Paper on Lung Center of the Philippines

Executive Summary
The Lung Center of the Philippines (LCP) is a leading tertiary hospital in the
Philippines that specializes in the diagnosis and treatment of lung and chest diseases.
Our mission is to provide high quality health services and state-of-the-art facilities for
the prevention, diagnosis and treatment of lung and chest diseases. In the recent years,
the LCP has taken on additional roles: 1. As the National Specialty Center for lung
and chest diseases enabling a network of regional lung centers and 2. As a COVID-19
referral center for moderate to severe disease.
The latter affected our center’s performance in an unprecedented manner as was the
rest of the world. Getting back on track after the pandemic was and continue to be a
challenge. This will require careful planning and strategic decision-making, including
the development of new programs and services, the optimization of existing resources,
and the cultivation of partnerships with other healthcare providers and stakeholders.
We do have a big window of opportunity with the growing demand for specialized
healthcare services and the increasing prevalence of respiratory diseases in the
Philippines. The LCP has the potential of expanding its operations and improving its
service delivery to meet the needs of its patients, at the same time, the LCP leverages
its expertise and reputation to strengthen its position as a leader in respiratory
healthcare in the Philippines and the surrounding countries in South East Asia.
Key external and internal factors were identified in the recent SWOT and PESTLE
analysis and the analysis matrix derived thereof showed that the LCP has maintained
a strong position in the market with remarkable competitive advantage. Our strengths
included our skilled workforce, complete array of diagnostic tools, state of the art
facilities, availability of advanced and specialized procedures, strong funding for the
Malasakit Fund which assured equitable access to our services. We have identified
certain weaknesses such as over dependence on subsidies, underutilization of our
services and outdated hospital information systems. There were opportunities
identified which we can use to our advantage like the increasing demand for
respiratory health services and our designation as a national specialty center. Threats
came in the form of rivalry from competing entrants and a worsening economy.
To address the challenges, we recommend a more in depth analysis of the revenue

cycle, doing a line item analysis of expenses and strategizing to reduce cost, and an
income-center specific financial performance and budget utilization. We also
recommend prioritizing an updated hospital information system integrated with the
different clinical and administrative departments. A marketing strategy is very much
needed at this point if we hope to build a good image and increase awareness and
utilization of our services. All these would hopefully generate an increase in revenue,
allowing the center to live up to its mandate and achieve its vision.
Strategic Management Paper on Lung Center of the Philippines 1

Table of Contents
Executive Summary ………………………………………………………………. 1

Table of Contents …………………………………………………………………. 2
Acknowledgment …………………………………………………………………. 4
I. Introduction …………………………………………………………………….. 5
II. External Environment Analysis ……………………………………………….. 6
A. Macro ………………………………………………………………………….. 6
1. Political Factors ………………………………………………………………... 6
2. Economic Factors ……………………………………………………………… 6
3. Sociocultural Factors ………………………………………………………….. 7
4. Technological Factors ………………………………………………………… 7
5. Legal Factors …………………………………………………………………. 8
6. Environmental Factors ……………………………………………………….. 9
B. Immediate Industry and Competitive Environment …………………………. 10
1. Threat of New Entrants ………………………………………………………. 10
2. Bargaining Power of Suppliers ………………………………………………. 10
3. Bargaining Power of Buyers ………………………………………………… 11
4. Threat of Substitutes ………………………………………………………… 11
5. Intensity of Competitive Rivalry ……………………………………………. 11
C. Threats and Opportunities …………………………………………………... 11
D. External Factor Evaluation (EFE) Matrix ………………………………….. 13
E. Strategic Issues based on External Factors ………………………………….. 14
III. Internal Environment Analysis …………………………………………….. 14
A. Company Resources and Capabilities ………………………………………. 14
B. Competitive Position………………………………………………………… 19
C. Value Chain Analysis ……………………………………………………….. 21
D. Financial Analysis …………………………………………………………... 22
E. Internal Factor Evaluation (IFE) Matrix …………………………………….. 28
F. Strategic Issues based on Internal Factors …………………………………… 30
IV. Strategy Formulation ………………………………………………………... 31
A. SWOT Matrix ……………………………………………………………….. 31
B. SPACE Matrix ………………………………………………………………. 32
C. Internal - External Matrix …………………………………………………… 33

D. GRAND Strategy Matrix …………………………………………………… 34
E. Summary of Strategies ……………………………………………………… 35
F. Quantitative Strategic Planning Matrix ………………………………….….. 35
V. Strategy Plan………………………………………………………………… 37
A. Vision and Mission …………………………………………………………. 37
B. Objectives (short term and long term) ……………………………………… 37
1. Strategic …………………………………………………………………….. 37
2. Financial ……………………………………………………………………. 40
C. Recommended Business Strategy ………………………………………….. 40
D. Corporate Social Responsibility …………………………………………… 41
E. Financial Projections ………………………………………………………. 42
F. Supporting Functional Strategies ………………………………………….. 43
1. Production/ Operations …………………………………………………….. 43
2. Marketing/ Sales …………………………………………………………… 43
3. Finance …………………………………………………………………….. 43
4. Personnel…………………………………………………………………… 43
5. MS/IT ……………………………………………………………………… 43
VI. Implementation and Control …………………………………………….. 44
A. The Balanced Scorecard ………………………………………………….. 44
B. Contingency Planning ……………………………………………………. 45
References …………………………………………………………………… 47
Appendices

Acknowledgments
Dr Vincent Balanag, Executive Director

Ms Marlyn Aro, Planning Officer III, Management Services Department
Ms Angie Rojas, Department Manager, Finance Department
Ms Flordeliza Dela Cruz, Division Chief, Procurement Division
Engr Conrado Panlaqui, Planning Officer III, Management Services Department
Katherine Tianco, Planning Officer II, Management Services Department

I. Introduction
The Lung Center of the Philippines (LCP) is a leading tertiary hospital in the
Philippines that specializes in the diagnosis and treatment of lung and chest diseases.
Ever since it was established in 1981 through Presidential Decree 1823, the LCP has
been at the forefront of respiratory healthcare in the country. 1 Our mission is to
provide high quality health services and state of the art facilities for the diagnosis and
management of lung and chest diseases, and promotion of lung health to every
Filipino, regardless of creed, sex, socioeconomic status or political affiliations. We
envision our institution to be at par with our southeast Asian counterparts and
eventually be globally competitive.
In addition, the Department of Health has designated the LCP to be the National
Specialty Center for lung and chest diseases in its efforts to align all stakeholders in a
single development plan in preparation for the implementation of the Universal
Health Care Act.2 In this framework, tertiary specialty hospitalized serve as apex
center, with a network of regional specialty centers. In our case, as the apex center
for lung and chest diseases, we are uniquely positioned to be able to expand our reach
nationwide enabling a network of regional lung centers.
The LCP has embarked on the Performance Governance System (PGS) strategic
framework in 2018, which gave the institution the strategic direction for the next 5-10
years. To be a regionally competitive, locally responsive premier institution for the
prevention, diagnosis and treatment of lung and chest diseases, providing quality
health care through excellent service, training and research. In the next five years, we
have developed a strategic road map that will put us at par with our south east asia
counterparts in providing advanced modalities in diagnosis and treatment of lung
disease. We have 5 core processes to develop strategically: under patient care –
provide quality specialized care for lung and chest diseases, including COVID; under
training – enhance competencies of personnel for specialized services and COVID
response; under research – lead researches that will impact on national health policies
and guidelines, especially for COVID; under advocacy – develop programs that
promote healthy lungs and environment and lastly, forge linkages among other
regional hospitals for transfer of skills and knowledge on lung and chest disease and
COVID. 3
The COVID-19 pandemic was paradox of sorts, on one hand putting on hold the
progress we have been making so far and on the other hand, being designated as a
COVID-19 referral center LCP was inundated with donations of medical equipment
and state of the art facilities that left us better equipped than ever. Not to mention the
particular skills and knowledge our pulmonary experts acquired from providing
service to thousands of COVID-19 patients and producing COVID-19 related research.
As a subject for strategic management, the LCP presents a unique set of challenges
and opportunities as we move on beyond the pandemic. Getting back on track will
require careful planning and strategic decision-making, including the development of
new programs and services, the optimization of existing resources, and the cultivation
of partnerships with other healthcare providers and stakeholders. We do have a big
window of opportunity with the growing demand for specialized healthcare services

and the increasing prevalence of respiratory diseases in the Philippines. The LCP has
the potential of expanding its operations and improving its service delivery to meet
the needs of its patients, att the same time, the LCP leverages its expertise and
reputation to strengthen its position as a leader in respiratory healthcare in the
Philippines and surrounding countries in SouthEast Asia.
Overall, the Lung Center of the Philippines presents an exciting and dynamic subject
for strategic management, offering the potential for growth, innovation, and
leadership in the field of respiratory healthcare.
II. External Environment Analysis
A. Macro. To help the Lung Center of the Philippines (LCP) establish the
external factors that could impact decisions made by the Center, we used the PESTLE
(Political, Economic, Sociocultural, Technological, Legal, Environmental) Analysis
format. This analysis provides the top management team with contextual information
about the Center like the direction in which the business is heading, brand positioning,
growth targets, and help identifies the areas of concern that may lead to a decline in
growth and productivity.
1. Political Factors. As a Government Owned and Controlled Organization GOCC),

Lung Center of the Philippines is subject to various government regulations and
policies related to healthcare delivery, financing, and administration. Any changes in
government policies and leadership could impact the center's operations, funding, and
patient care.
a. Upcoming Local Elections. Political instability and unrest, especially around

elections can disrupt operations and create uncertainty for businesses and
organizations. Hiring of new employees needed in the expansion of services will also
be delayed as a consequence.
b. Appointment of the new Department of Health (DOH) Secretary. The new DOH
secretary may have a unique vision for healthcare delivery, public health initiatives,
and strategies to address healthcare challenges. He can also prioritize certain public
health issues based on his expertise, background, and personal interests that can result
in a shift in resource allocation and the implementation of targeted interventions to
address priority health concerns. Also, with the newly appointed secretary, top
management leadership as well as their decisions can also be affected.
c.Tensions in the West Philippine Sea. If the tension in the West Philippine Sea
continues, the government may divert or reduce funds available for healthcare
institutions for its infrastructure, equipment, services and allocate instead to defense
and military purposes. It could also affect the timely delivery of healthcare resources
such as pharmaceuticals, medical equipment, etc. which may result in shortages and
increase in costs of products/services.
2. Economic Factors. The Lung Center of the Philippines (LCP) operates within the
context of the broader Philippine economy. As such, the general economic conditions
and forecasts for the country are important factors to consider when analyzing the
LCP's external environment.

a. The Philippines is a member of the Regional Comprehensive Economic Partnership
(RCEP), and as such, the LCP can benefit from increased access to affordable medical
supplies and pharmaceutical products that can result in ensuring our clients with a
stable supply of essential medicines and equipment. It can also allow our healthcare
professionals to explore more opportunities for professional growth, enhance skills
and employment in other member countries.4
b. Inflation Rate. Inflation rate is a big threat to the Center because we will also need
to adjust or increase our allocated budget due to increased operational costs including
personnel salaries, supplies and utilities. It may also result to an increase in the cost
of healthcare services including the medical consultations, hospitalization,
medications, diagnostic tests and medical procedures for our clients. Fortunately for
the Philippines, inflation rate has eased from 7.6% in March 2023, to 6.1% as of May
2023. 5. Be that as it may, the LCP should adjust the costing of diagnostic tests and
medical services in a timely manner in case of another surge in inflation rate.
c. Increase in the popularity of the government payment scheme of healthcare

(Malasakit Program) The LCP is very fortunate that we receive funding from
numerous sources to provide equitable health service to patients who would otherwise
not be able to afford diagnostic procedures or treatment. As you will see in further
discussions, this funding has allowed the LCP to assure equitable access to the new
diagnostic tests and medical services that would otherwise be deemed unaffordable.
3. Sociocultural Factors. The changing landscape of the surrounding community

related to size, composition and characteristics of the population LCP serves could
impact its operations.
a. Increase in Non-Communicable Diseases. Non communicable diseases are now the

leading causes of disease burden in the Philippines. NCDs are conditions of long
duration and slow progression. The main causes include cancer, chronic respiratory
diseases, cardiovascular diseases and diabetes. 6 The following table shows the top
causes of disease burden in the Philippines currently and projections in the next 20
years. Among the top 10, 3 are respiratory conditions: COPD, Asthma and Lung
Cancer. LCP could adapt to these developments by expanding programs and services
specifically to address this.
b. Emergence of new SARS-CoV2 variants. Little is known about the future of

SARSCov-2 infections. A study tried to look into possible scenarios. Three main
scenarios were 1. No new variants will emerge 2. Omicron-like variants will emerge 3.
Worst case scenario of a delta-like variant will emerge. Regardless of what scenario

will play out, billions of covid infections will still occur, millions will still require
hospitalizations and deaths can still occur, with increasing frequency with the worst
scenario predicting 21.3 mission hospitalizations and 11.1 million deaths. 7 Being a
COVID-19 referral hospital, any rise in the census of COVID-19 in the country,
regardless of which scenario will play out, will affect the Center’s prioritization of
budget and may affect other non-COVID strategic initiatives. LCP will continue to
actively triage patients and maintain physical barriers to keep COVID-19 patients
isolated from the rest of the hospital. But we should actively strategize on contingency
plans for each scenario.
c. Continuous Migration of Healthcare Professionals. One of the most important

challenges of the Philippine health care system is international migration of health
workers. Based on data from the Philippine Overseas Employment Administration
(POEA) and the Commission on Filipinos Overseas (CFO) from 1990 to 2017, there
has been a steady increase in migration of health workers. 8 A number of
industrialized countries have opened their doors to highly skilled health professionals,
a great number of which come from the Philippines. LCP is not exempt from the
shortage of nurses which prevents us from achieving optimal occupancy rates. The
government should create and implement competitive compensation (salary and
benefits) packages. This option follows the provisions of the UHC law in providing
competitive salaries and benefits and will have a high chance of encouraging HRH to
stay and work in the local health sector. An increase in the number of HRH working
locally will provide needed health services and help improve health outcomes.
However, it will be challenging to implement this because of the high cost associated
with it. The LCP may strategize to increase profitability margin in order to increase
benefit packages within allowable increments to retain our workforce.
4. Technological Factors. Healthcare technology refers to any IT tools or software

designed to boost hospital and administrative productivity, give new insights into
medicines and treatments, or improve the overall quality of health care provided.
Technological advancements are key to the improvement in the efficiency of
operations. Infusing technology into every step of the healthcare experience can
counteract two key trouble spots: quality and efficiency. Here are some technological
factors identified by LCP to have some impact on its operations.
a. Emerging Trends in AI in Healthcare. Advances in medical devices and equipment,

especially using AI, could enable the Lung Center of the Philippines to provide better
care and more efficient services. The center could stay updated on technological
advancements and invest in state-of-the-art equipment to improve diagnosis and
treatment.
b. Advancement in Internet and Communication Technology is linked to economic

development. A study by Audi et al shows while having insignificant effect on the
economy in developed countries, the advancement in information and communication
technologies is playing a positive and significant role in the economic development of
developing countries. 9 For LCP to gain competitive advantage, we will have to
invest in state of the art ICT for our administrative and medical processes, as well as
marketing activities.
5. Legal Factors. The LCP operates under the jurisdiction of the Department of
Health and the implementation of new laws and government policies will greatly

impact on our operations. LCP should stay up to date on relevant laws and
regulations.
a. RA No. 11223 (Universal Healthcare Law) Universal Health Care (UHC) in the
Philippines aims to ensure that all Filipino people, regardless of their economic
circumstances, have access to high-quality healthcare services that can facilitate early
disease identification and management and so automatically enhance health outcomes.
10
Lung Center of the Philippines as a designated National Specialty Center for lung
and chest diseases, is in a strategic position to provide the majority of patients
equitable access to respiratory health care. The Health Care Network referral system
needs to be put in place for improved access.
b. RA No. 11215 (An Act Institutionalizing a National Integrated Cancer Control

Program and Appropriating Funds Therefore) Republic Act 11215 also known as the
National Integrated Cancer Control Act (NICCA) aims to strengthen the prevention,
early detection and management of cancer in the Philippines. 11 It mandates the
establishment of cancer centers and facilities in different provinces, ensuring that all
cancer patients will have access to specialized care close to their communities. Based
on the Statistical Report of the Lung Center of the Philippines, Lung Cancer is the
number one cause of hospital admissions. However, the Philippine Government
granted the establishment of the Philippine Cancer Center (PCC) that will focus on
malignancy/cancer diseases. This will be a big threat to our Center as the Cancer
center will not only compete with our services, but may also cause waste of resources
as some if not all of our existing facilities and laboratories will be duplicated in the
said institution.
c. Proposed CDC Bill. 12. This bill seeks to establish a Philippine Center for Disease
Control and Prevention (CDC). This Center will be the principal health protection
agency of the Philippines tasked to prevent, protect and manage the spread of diseases
and other health threats originating domestically and internationally. Also under this
bill, the CDC shall be the country’s epidemiology and surveillance body which is
sufficiently funded and equipped with bio-safety level 2-4 laboratories. It will be an
advantage to the LCP having a local CDC as a partner in the fight against Emerging
and Re-emerging Infectious Disease and will have to collaborate some functions so
that there will be alignment of our respective functions.
6. Environmental Factors
a. Intermittent Electricity and Water Supply. Intermittent electricity affects medical

and diagnostic services of the LCP like X-rays, CT scans, and MRIs that rely on
electricity to function. Power outages also disrupt the communication and information
systems of the hospital where electronic health records and computerized systems
affect the communication, efficient access to patient information in real-time, patient
monitoring, and data management. Reliable electricity is also relevant for the
medicine storage and preservation as many medicines and vaccines require specific
temperature conditions for storage to maintain their efficacy. Frequent power outages
can disrupt the refrigeration systems in hospitals, compromising the integrity of stored
medications and vaccines. This can result in wastage, reduced effectiveness, or even
potential harm to patients if compromised medications are administered.

LCP had already invested in procuring backup power generators and uninterruptible
power supply (UPS) systems to protect our equipment. As we plan for the expansion
of our infrastructure and facilities, LCP should plan for energy conservation measures
to reduce electricity consumption and invest in more generators to assure
uninterrupted electricity supply.
The importance of water supply to LCP particularly during a pandemic cannot be

overstated. Water supply is relevant for maintaining proper sanitation and hygiene
practices; it is also important for infection control measures (cleaning and
disinfection). A stable water supply is also essential for the hospital’s support services
function like laundry services, kitchen operations, food preparation, and general
facility maintenance
LCP regularly conducts a schedule of water maintenance and makes sure that all staff
are informed beforehand to not affect the operations and services relating to water
supply.
b. Natural calamities (e.g. earthquake). Natural calamities can have a significant

impact on LCP in several ways. We have experienced this first hand, first during the
fire that razed the Center to the ground in 1997 which set us back about 5 years. We
had to wait for a new infrastructure to be built and new equipment to be procured
before we can move forward with our mission. Secondly, during the COVID
pandemic when we found ourselves ill-equipped as was the rest of the world, to take
care of the deluge of patients flocking to our institution. In both instances, of course,
LCP bounced back and in both instances, stronger than ever. Contingency plans will
have to be developed for any future calamities that may affect the country in general
and the center in particular.
B. Immediate industry and competitive environment
Porter's Five Forces analysis can be used to assess the competitive environment of the
Lung Center of the Philippines. Here's an analysis of each force:
1. Threat of new entrants: The threat of new entrants to the Lung Center of the
Philippines is low. While there may be respiratory healthcare services available in
other tertiary hospitals, LCP is the only Specialty Center for Lung and Chest diseases,
the only Government Owned and Controlled Corporation at that. There are significant
barriers to entry of private institutions with similar offerings, such as high start-up
costs and the need for specialized knowledge and expertise. However, as previously
discussed, setting up of a government owned and ran National Cancer Center within
the LCP grounds may constitute competition for our lung cancer diagnosis and
treatment program
2. Bargaining power of suppliers: The bargaining power of suppliers for the Lung
Center of the Philippines is relatively low. The government requires hospitals like the
LCP to go through the bidding process in procurement, where suppliers compete with
each other to offer the lowest price with the best quality of products and services.
Additionally, the Lung Center of the Philippines has the option to switch suppliers if
necessary, to ensure we are getting the best deal possible without compromising the
quality of care.

3. Bargaining power of buyers: Buyers, for health care providers such as the LCP,
consist of government agencies and patients. The bargaining power of government
agencies for the Lung Center of the Philippines is strong. We have to work closely
with government agencies to obtain needed support to assure the financial
sustainability of the center. Patients also have moderate bargaining power because
they have the ability to choose from other respiratory healthcare providers in the
market, especially if they have the means to go to a private hospital. However, the
Lung Center of the Philippines can differentiate itself by providing specialized
respiratory care not available anywhere else, and by offering quality and affordable
services. This is where the bargaining power of LCP with government funding
agencies comes into play to ensure that these services are available to everybody
regardless of paying capacity.
4. Threat of substitutes: The threat of substitutes for the Lung Center of the
Philippines is moderate. Patients may choose to seek healthcare services from other
healthcare providers offering similar respiratory care services. However, the Lung
Center of the Philippines can differentiate itself by being a government owned and
controlled corporation, with funding from government agencies to ensure equitable,
advanced, and high-quality respiratory care services.
5. Intensity of competitive rivalry: The intensity of competitive rivalry in the

respiratory healthcare industry is high. The Lung Center of the Philippines competes
with other respiratory healthcare providers in the market, such as hospitals and clinics
offering respiratory care services. Additionally, the Lung Center of the Philippines
may face competition from providers of alternative respiratory therapies and
treatments.
Overall, the threat of new entrants and the bargaining power of suppliers are low. The
bargaining power of buyers and the threat of substitutes are moderate to high. The
intensity of competitive rivalry is high. The Lung Center of the Philippines can
differentiate itself by providing specialized respiratory care services and by offering
quality and affordable services to its patients. Additionally, the center can explore
ways to collaborate with other healthcare providers and expand its services to reach a
wider patient base.
C. Threats and Opportunities
Here are some potential threats and opportunities in the external environment analysis
for the Lung Center of the Philippines as identified in the annual SWOT and PESTLE
analysis.
Threats:
1. Political stability. Tensions in the West Philippine Sea can escalate into a war
which will adversely affect the economy in general and LCP operations in particular.
Not knowing who the future leaders of the DOH and our center will be in the next few
years will have some impact.
2. Economic conditions: Rising inflation rate can affect the demand for healthcare
services, including respiratory care services offered by the Lung Center of the

Philippines. The cost of services will have to be increased and may increase out-of-
pocket expenses for patients.
3. Sociocultural conditions. The migration of health care workers, particularly

nurses has depleted our workforce and subsequently our occupancy rate.
4. Government regulations: Changes in government regulations related to healthcare

policies can impact the operations and profitability of the Lung Center of the
Philippines. Particularly, regulations that allow the establishment of a National Cancer
Center within LCP grounds.
5. Competitive pressures: The respiratory healthcare industry is highly competitive,

and the Lung Center of the Philippines may face competition from other healthcare
providers and alternative respiratory therapies and treatments.
6. Technological advancements: Rapid advancements in technology can make

existing treatments and therapies obsolete and may require the Lung Center of the
Philippines to continuously adapt and innovate its services.
Opportunities:
1. Growing demand for respiratory care: There is a growing demand for

respiratory care services due to an increase in respiratory-related illnesses and
conditions both from communicable and non-communicable diseases.
2. Implementation of advanced respiratory services: The Lung Center of the

Philippines can explore opportunities to introduce advanced services in respiratory
care like lung transplantation, minimally invasive surgical procedures, and
interventional pulmonology.
3. Partnerships and collaborations: Collaborating with other healthcare providers

and organizations can provide opportunities for the Lung Center of the Philippines to
expand its reach and improve its services. Especially with the designation as National
Specialty Center for Lung and Chest Diseases enabling a network of regional lung
centers
4. Advances in technology: The Lung Center of the Philippines can leverage

advancements in technology to enhance its services, such as implementing hospital
information systems or utilizing new respiratory care treatments and therapies.
Overall, the Lung Center of the Philippines should be aware of potential threats and
mitigate risks while leveraging opportunities to grow and improve its services.

D. External Factor Evaluation (EFE) Matrix.
To create an External Factor Evaluation (EFE) matrix for the Lung Center of the
Philippines, we identified and evaluated the most significant external factors affecting
the organization and identified each to either be a threat or an opportunity.

E. Strategic Issues based on External Factors
Based on the external factors analysis conducted using the EFE matrix, the Lung
Center of the Philippines has several strategic issues that need to be addressed to
improve its overall performance and competitiveness. Key strategic issues include
1. Political and Economic uncertainty: The political and economic environment

certainly affects the institution’s performance as we rely heavily on government
subsidy to counterbalance our cost of operations. Any reduction in subsidy caused by
political issues or economic instability will greatly impact on how we can deliver our
services. LCP should plan for fiscal independence, increase revenue from our
business income and reduce cost of operations to increase our net income and margin
of profitability.
2. Competitive Rivalry: Proposals from several quarters to utilize LCP grounds for
projects like the National Cancer Center or CDC building will definitely be
duplication of services as well as competition for our lung cancer programs and
services. LCP should develop contingency plans to maintain competitive advantage
despite presence of these projects on lung center grounds
3. Growing demand for respiratory health services: Respiratory conditions

continue to be in the top 10 causes of morbidity and mortality in the Philippines.
Aging population and increase in non-communicable respiratory diseases like lung
cancer or COPD guarantees that there will always be a demand for respiratory health
care services. LCP should take advantage and expand the reach of its current
programs and services to a wider market. Being designated as a national specialty
center for lung and chest diseases puts us in a strategic advantage.
4. COVID-19 endemic. As we shift to a healthcare landscape where COVID-19

becomes a constant presence, always threatening an outbreak yet seemingly under
control, LCP as a referral center for moderate to severe COVID will always have to
be prepared for a surge at the same time, plan for the new and advanced services laid
out in the 5-10 year development plan.
III. Internal Environment Analysis
A. Company Resources and Capabilities. The LCP is located at the heart of

Quezon City, sprawled over 32513.85 square meters of land, which gives us a huge
potential for growth and development, infrastructure-wise which has a significant role
in strengthening our competitive advantage. Expansion of our healthcare facility in
turn can expand patient programs and services to help us fulfill our mandate and
achieve our vision. In fact, as of this writing, plans are underway to build a west wing
complex consisting of a two-tower building to upgrade our facilities and increase bed
capacity to 500-1000. A 5-10-year development plan was developed through the
Performance Governance System, as a reference for the planning of the future LCP.
As of this day, however, within the confines of the current infrastructure, the LCP
provides a world standard of care for lung and chest diseases through its skilled
workforce, excellent patient services and programs, and state of the art equipment and
facilities.

1. Skilled workforce: The Lung Center of the Philippines has a highly trained and
skilled workforce of doctors, nurses, and other healthcare professionals who provide
high-quality respiratory care services to patients. LCP 83 respiratory health experts
(35 in training) categorized into pulmonary specialists, thoracic surgeons, thoracic
anesthesiologists, radiologists, pathologists and oncologists. We have a total of 103
critical care nurses and 136 general nurses. Our allied health complement consists of 8
physical and 17 respiratory therapists, 34 medical technologists, 17 radio technicians,
and 10 radiotherapy technicians. The LCP core services provided are the following.
a. Pulmonary Critical Care and Sleep Medicine Department is a major clinical

department of the Lung Center. It is a multi-faceted department which has recently re-
aligned itself into four major divisions, namely, Division of Adult Pulmonology,
Division of Critical Care Medicine , Division of Interventional Pulmonology and
Division of Sleep Medicine. Mainly involved in specialized patient care, training and
research, the Department boasts of a roster of board-certified pulmonologists and
other subspecialists who are all certified experts in their respective fields of practice.
Because revenue generation is also one of the goals of the Department, in keeping
with the Center’s mission, the income centers, namely, the Section of Respiratory
Services and the Section of Physical Therapy and Rehabilitation, as well as other
patient care (cost centers) sections, such as the Medical Intensive Care Unit (MICU),
the St. Therese Isolation Unit (STU), Intermediate Medical Care Unit (IMCU), the
Bronchoscopy Section and the more recent COVID hospitainer ward all contribute to
the continued profitability of its offered services. With the manpower being a mixture
of medical and allied medical personnel, these Sections/Units demonstrate teamwork
and cooperation in the implementing their respective policies and instituting their
standard operating procedures to ensure efficient health care service delivery at
affordable rates. The Department also proudly implements 5 subspecialty training
programs, the Adult Pulmonology Fellowship, Pulmonary Critical Care Fellowship,
Sleep Medicine Fellowship, plus two newly established Fellowship Training
Programs in Interventional Pulmonology and Pulmonary Rehabilitation.
b. Thoracic Surgery and Anesthesia Department of the Lung Center of the

Philippines is in the forefront in the management of chest diseases by offering cutting
edge screening techniques to Video Assisted Thoracic Surgery (VATS). The division
of thoracic surgery specializes in the surgical management of both adult and pediatric,
benign or malignant thoracic pathology. Among these are lung tumors, pleural
effusions, esophageal diseases, mediastinal masses, complicated inflammatory lung
diseases, tracheobronchial pathology, and chest wall tumors or disorders. The
Division of Thoracic Anesthesia on the other hand, provides excellent anesthesia
services to a wide range of surgical procedures: from simple general surgical cases to
the most complex thoracic surgical operations, adapting to the changing needs of
every patient, and applying current knowledge, skills and technology to improve
patient safety and overall patient satisfaction and outcome. The Thoracic Surgery
and Anesthesia Department continues to evolve in meeting the needs of countless
patients who have varying degrees of lung and other chest diseases. With the advent
and the proven advantage of newer surgical techniques, we continue to lead the
country in employing the latest technological advances in: Chest and lung surgeries,
both minimally invasive and open procedures, Critical Airway Management such as
tracheobronchial tumor ablations and stent deployment, novel diagnostic procedures
for all pulmonary and other chest diseases like EBUS, Mediastinoscopy, Ultrasound

and/or CT-guidance biopsies. We are leading the country in terms of video assisted
thoracoscopic surgery (key-hole surgery) in removing tumors and other benign (blebs,
bullae, infectious) conditions of the lungs, pleurae, mediastinum, and esophagus. Our
Department is the only recognized Center of Excellence in Video-Assisted
Thoracoscopic Surgery in the Philippines.
c. Radiology and Radiotherapy Department of the Lung Center of the Philippines

offers a wide variety of diagnostic examinations, therapeutic and interventional
procedures. The Department is composed of different sections namely: Digital
Radiography (Diagnostic X-ray), Ultrasound, Computed Tomography (CT) scan,
Magnetic Resonance Imaging (MRI), Interventional Radiology, Radiation Oncology
and Nuclear Medicine Section. Ultrasound, CT, MRI and Interventional Radiology
are at the high–end spectrum of diagnostic modalities reserved to augment the
diagnostic capacity of basic radiography. Radiotherapy is one of the modest services
being offered by the Lung Center of the Philippines. LCP’s Nuclear Medicine
Section utilizes a small amount of unsealed radioactive substances or
radiopharmaceuticals (tracers) to diagnose or treat diseases. For imaging of different
organs and diseases, different radiopharmaceuticals are used.
d. Pathology and Laboratory Medicine Department is at the forefront of

laboratory diagnostics for the hospital. It is composed of 4 Divisions: Clinical
Pathology, Anatomic Pathology, National Reference Laboratories and a Subnational
Laboratory and Molecular Diagnostics and Cellular Therapeutics Laboratory, all
using state-of-the-art equipment, adhering to international standards, and manned by
highly competent laboratory scientists. Aside from providing a complete array of
laboratory tests, recent acquisitions of state of the art equipment allow the
performance of molecular tests to diagnose TB and identify common pathogens
within hours using multiplex PCR technology. Also available is an extensive list of
immunohistochemistry panels to aid the diagnosis of lung cancer and other tumors.
The Molecular Diagnostics and Cellular Therapeutics laboratory through its Stem Cell
Laboratory, of the few in the country, provides quality, autologous dendritic cell
vaccines and other autologous adult stem cell-based therapies. As early as 2009,
Lung Center of the Philippines was designated as the Referral Center for Emerging
and Re-Emerging Respiratory Tract Diseases such as the AH1N1 and the Middle East
Respiratory Syndrome – Coronavirus (MERsCoV). Establishing a SubNational
Laboratory for EREID put us at the center of the COVID Response of the country.
e. Emergency Medicine and Outpatient Department is made up of 4 divisions:

Emergency Medicine, OutPatient, Public Health Domiciliary Division (PHDD) and
the Healthy Lungs Program, the advocacy arm of the center. The Emergency Room of
the Lung Center of the Philippines is a state-of-the-art facility manned by competent
and dedicated medical specialists and allied personnel who are highly trained to
provide acute care to pulmonary and thoracic emergencies. The LCP Emergency
Room boasts of newly acquired state-of-the-art mechanical ventilators for both
invasive and non-invasive ventilation, vital signs and cardiac monitors, and transport
stretchers. A separate Covid-19 Triage and Emergency Treatment Facility is also
available to provide medical consultation and perform diagnostic tests for Covid-19
related concerns. The OPD provides front-line services for the service patients with
pulmonary and chest diseases. Its clinic services include a General OPD manned by
pulmonary specialists for all kinds of medical lung diseases, a Thoracic Surgery clinic

for surgical and postoperative cases, a Pain clinic manned by Thoracic
Anesthesiologists for pain management of chronic cases like malignancies, and
various Specialty Clinics that provide comprehensive care for patients with specific
lung diseases such as COPD, Bronchial Asthma, PTB, and thoracic malignancies
(Oncology). The PHDD provides Directly Observed Therapy Strategy, Programmatic
Management of Drug Resistant Tuberculosis, and HIV Hub. The Health Lungs
Program provides for education of primary care physicians and patients through
educational modules and support groups. One of our flagship programs is the
smoking cessation program and Quitlines, the one and only quitline service in the
country.
f. Pediatric Pulmonary and Critical Care Medicine Department is a multi-disciplinary

unit that provides quality healthcare service to children requiring specialty pulmonary
and critical care. It is composed of a diverse group of experts in pediatric
pulmonology, intensive care, infectious diseases, allergology-immunology,
ambulatory pediatrics, cardiology, gastroenterology, hematology-oncology,
nephrology, neurology/sleep medicine, rheumatology, and surgery. It offers charity
outpatient services, and it caters mainly to cases of childhood tuberculosis and
oncology (thoracic masses).
g. Thoracic Oncology Department is the youngest of the clinical departments elevated

from being a section to a full-fledged department in 2018. The primary objective is to
exert all efforts to diagnose and treat lung cancer in the early stages. Lung Cancer is
still among the top ten causes of admissions and in hospital mortality. Currently, the
department boasts programs such as the Screening for Early Lung Cancer Diagnosis
and Treatment, Tumor Board, and Ambulatory Medical Oncology Unit.
To give you an idea of the population of patients seen in our institution, here is the
census of cases seen in LCP from 2018 to 2022 according to the incidence rate.
Outpatient.
Pulmonary Tuberculosis has consistently topped the list of patients seen at the OPD
since 2018, followed by bronchiectasis, malignancies and chronic obstructive
pulmonary diseases.

Inpatient.
For hospital admissions, malignancies are the number one cause for admission
followed by tuberculosis until the pandemic in 2020, when COVID-19 became the
predominant cause for admission.
2. State-of-the-art facilities: As laid out in the 5-10 year development plan, the Lung
Center of the Philippines has and is constantly acquiring state of the art facilities
equipped with the latest medical technologies and equipment to provide patients with
the best possible care. Here is the list of equipment that the LCP currently have:
1. 2D Echo Machine
2. Anesthesia Machine
3. Automatic Endoscopic Reprocessor
4. BiPap Machine
5. Bronchoscopy Thermal Vapor Ablation
6. Cardiac Monitor
7. Cell Counter Machine
8. Cell Saver
9. CPET (Ergometer)
10. CT Simulator
11. Defibrillator
12. ECG Machine
13. ECMO Machine
14. Endoscope Reprocessor
15. High Flow Nasal Cannula Machine

16. Inhalation Sedation Controller
17. Laryngoscope
18. Mechanical Ventilator
19. Navigational Bronchoscope
20. Plasma Sterilizer Machine
21. Polysomnograph Machine
22. Portable Bronchoscope
23. Portable Reverse Osmosis (R.O.) Machines
24. Portable X-ray Machine
25. Therapeutic Hypothermia Machine
26. Ultrasound Endobronchial Machine
27. Video Surgical System
3. Research and development: The Lung Center of the Philippines has always had a
strong research and development, with 10-15 researches conducted by training
fellows. As part of our 5 year development plan, we envisioned a stronger department,
participating in more multi-center trials, developing more protocols for our new
programs and services, getting our researches published in peer reviewed journals
which will allow us to stay at the forefront of new treatments and therapies for
respiratory health care.
4. Reputation and brand recognition: The Lung Center of the Philippines has built a
strong reputation for providing high-quality respiratory care services over the years,
which has resulted in high brand recognition and patient loyalty. Especially during the
pandemic, the LCP has gained the reputation of providing the best health care for
moderate to severe COVID-19 with good clinical outcomes. Our tagline: LabanLung.
5. Financial resources: The Lung Center of the Philippines as a GOCC (Government

Owned and Controlled Corporation) has access to significant financial resources
through subsidies provided by the government and donations to keep us afloat. LCP
should strategize to increase revenue from business income by creating new sources
of revenue, competitive pricing of commodities and services, increase collection and
reduce expenses.
Overall, the Lung Center of the Philippines has many strengths in terms of its
resources and capabilities, which enable it to provide high-quality respiratory care
services to its patients. However, there may be some areas for improvement, such as
increasing utilization of new equipment and services, investing in new training
programs for staff or expanding its research and development efforts to further
improve its services.
B. Competitive Position. To determine the competitive position of the Lung Center

of the Philippines, it is necessary to evaluate the organization's strengths and
weaknesses relative to its competitors. Based on the external and internal environment
analysis, some potential factors that may impact the Lung Center of the Philippines'
competitive position include:
1. Quality of care: The Lung Center of the Philippines has a strong reputation for
providing high-quality respiratory care services, which is a significant competitive
advantage. In the past few years, we have added new and advanced programs and
services to improve care for our patients. Whether providing basic or advanced

pulmonary services, we are duty-bound to maintain the highest standards. Our
Quality Management System constantly monitors and assures high-quality services.
We must continue to innovate and find better ways of improving the delivery of care
if we want to maintain a competitive edge.
2. Technology and equipment: The Lung Center of the Philippines has programmed
the acquisition of state-of-the-art facilities and equipment in the next five years to
support its respiratory care services, which is another competitive advantage.
However, other healthcare providers may also have access to advanced technologies
and equipment, so the Lung Center of the Philippines may need to invest in new
technologies to maintain its competitive edge. Although we have just started
implementing an electronic medical records system, once it is fully implemented then
this will improve our competitive advantage.
3. Reputation and brand recognition: The Lung Center of the Philippines, being the
only government owned and controlled corporation that specializes in lung and chest
diseases, has built a strong reputation over the years, which has resulted in high brand
recognition and patient loyalty. This is a significant competitive advantage that the
organization can leverage to attract and retain patients.
4. Cost and affordability: The Lung Center of the Philippines is extremely lucky to
be the recipient of government subsidies, such as the Malasakit funds, which make
sure that our services are affordable to our paying clientele and even made available
for free, especially for indigent patients. The only other places where our services
may be available are in private hospitals, whose cost of services may be 2 or 3 times
more expensive. To maintain its competitive position, the organization may need to
develop more strategies to manage costs while still providing high-quality care.
Overall, the Lung Center of the Philippines appears to have a strong competitive
position in the respiratory care industry, with a focus on quality care, advanced
technology and equipment, and a strong reputation and brand recognition. However,
the organization may need to continue to innovate and differentiate itself to maintain
its competitive edge in an increasingly crowded market.

C. Value Chain Analysis
Value Chain Analysis is a tool that helps organizations identify the activities involved
in creating value for their customers and how these activities can be optimized to
improve performance. Here is an example of a value chain analysis for the Lung
Center of the Philippines:
Primary Activities:
1. Inbound Logistics: Management of medical supplies, pharmaceuticals, and

equipment procurement, inventory management, and supplier relationships.
2. Operations: Patient care processes, medical treatments, diagnostic procedures,

surgical services, and medical interventions.
3. Outbound Logistics: Patient discharge processes, coordination of referrals,

transfer of medical records, and post-treatment follow-up.
4. Marketing and Sales: Promotion of healthcare services, patient referrals,

appointment scheduling, and patient education.

5. Service: Patient support services, counseling, patient satisfaction measurement, and
post-treatment support.
Support Activities:
1. Firm Infrastructure: Strategic planning, financial management, regulatory

compliance, quality assurance, and organizational governance.
2. Human Resource Management: Recruitment, training, performance management,

and development of healthcare professionals, nurses, doctors, and support staff.
3. Procurement: Supplier selection and negotiation for medical supplies,

pharmaceuticals, equipment, and services.
4. Technology and Infrastructure: Electronic Medical records (EMR) systems,

medical equipment, information systems, telemedicine technology, and infrastructure
maintenance.
By analyzing the activities involved in creating value for patients, the Lung Center of
the Philippines can identify areas where it can improve its performance and create a
competitive advantage. For example, the organization may want to focus on
enhancing its procurement processes to reduce costs and improve the availability of
medical supplies and equipment. The organization may also want to focus on
developing new technologies and treatments that can improve patient outcomes and
attract more patients to the center.
D. Financial Analysis
Financial Analysis would involve a review of the organization's financial statements,

including its income statement, balance sheet, and cash flow statement. Here are some
key financial metrics that can be used to evaluate the Lung Center of the Philippines'
financial performance: 13

1. Revenue: This metric measures the total amount of money that the Lung Center of
the Philippines generates from its health services. Increasing revenue is important for
the organization's financial stability and growth. Looking at the center’s financial
performance, our total revenue appears to increase from 2018 to 2021, with a slight
dip noted in 2022.

2. Net income: This metric represents the Lung Center of the Philippines' total
revenue minus its expenses. Positive net income indicates that the organization is
generating a profit, while negative net income indicates that it is operating at a loss. It
is noted that net profit based on revenue less total expenses would put us at a deficit
except for 2021, where LCP made a positive net. However, because of regular
government subsidies received, the center still gets a net surplus every year. So if we
consider subsidy and assistance as part of revenue, recalculating for net income puts
us in a net surplus. (See table on financial performance)
3. Profit margin: This metric measures the percentage of revenue that the Lung
Center of the Philippines retains as profit. A higher profit margin indicates that the
organization is efficient in managing its costs and generating profits. Profit margin is
computed as revenue minus expenses divided by revenue. As can be seen in the
computation for net profit margin, from 2018 to 2020, LCP has a negative net profit
margin, however it seems to be improving. In 2021, the center achieved a net profit
margin of 11%. In 2022, net profit margin became negative again, albeit not as bad as
the previous years. Based solely on revenue from business income and grants, it
would appear that the center is not generating enough profit, or not managing its costs
adequately. Huge influx of subsidy is keeping us afloat, with even a net surplus for
the year. Recalculating net profit margin to include subsidy in the revenue now gives
us a positive profit margin.
Profit Margin based on business income and donations:
2018 2019 2020 2021 2022
revenue 697037854 802740755 912041408 1627703348 1069369876.24
expenses 943622060 1061256516 1104377764 1448475501 1257512403.1
Deficit/surplus -246584206 -258515761 -182336356 179227847 -188142526,86
Net Profit -35.38% -32.2% -19.99% 11% -17.59%

margin

Profit Margin based on business income, donations and subsidy
2018 2019 2020 2021 2022
Revenue plus 954,694,854 1,093,023,214 1,347,722,908 2,817,185,248 1755817176.24

subsidy
expenses 943622060 1061256516 1104377764 1448475501 1257512403.1
Deficit/surplus 11,072,794 31,776,698 243,345,144 1,368,709,747 498,304,773.14
Net Profit margin 1.16% 2.9% 18.0% 48.5% 28.4%
4. Return on investment (ROI): This metric measures the profitability of the Lung
Center of the Philippines' investments. A higher ROI indicates that the organization is
generating a good return on its investment. ROI is computed by dividing net income
(plus subsidy) by total operating expenses. Computation of our ROI from 2018-2022
are as follows:
2018 = 1.17%
2019 = 2.99%
2020 = 22.03%
2021 = 53.43%
2022 = 34.66%
The LCP’s ROI has been steadily improving over the past years showing that our
investments on new equipment or services is flowing back in as revenue.
5. Debt-to-equity ratio: This metric measures the amount of debt that the Lung
Center of the Philippines has relative to its equity. A lower debt-to-equity ratio
indicates that the organization is less reliant on debt financing and is therefore less
risky. To compute for our debt-to-equity ratio, we divide the total liabilities by total
net equity. Based on table of financial position, our debt-to-equity ratio from 2018-
2022 are as follows:
2018 = 0.144
2019 = 0.21
2020 = 0.27
2021 = 0.27
2022 = 0.34

Since a debt-to-equity ratio below 1.0 is considered healthy, LCP remains to have
good financial leverage and may be able to off-set any reduction in profit.
Nevertheless, the center should continue to try and improve on the debt-to-equity
ratios by increasing profitability and improving inventory management.
6. Cash flow: This metric measures the cash that flows in and out of the Lung Center
of the Philippines' operations. Positive cash flow is important for the organization's
financial stability and ability to invest in new technologies and services. Looking at
the table on cash flows, it is evident that cash inflows from operating activities has
been steadily increasing over the past 4 years. It is also notable that we have been
investing heavily but except for the year 2019, our revenue from operations have been
able to support the cost of operations as well as our investments. We can still improve
our financial performance by reducing costs, increasing revenue and optimizing
investment portfolio.
E. INTERNAL FACTOR EVALUATION (IFE) MATRIX
Key INTERNAL Factors S = Strength Weigh Rating: Weighted

W= t (0 to 1=poor;2=average; score
Weakness 1.0) 3=above average; (weight x
4= excellent rating)
STRENGTHS
- Vision and Mission are clear S 0.10 4 0.40

and appropriate based on LCP’s
mandate
- Increase in corporate S 0.08 2 0.16

accounts
- Strategies are based on PGS S 0.13 4 0.52

deliverables
- Pricing strategies of S 0.08 3 0.24

drugs/medicines are dependent
on the DOH DPRI
- Presence of activities that S 0.10 2 0.20

foster employee interaction and
develop cordial relationships
- Core values are articulated but S 0.15 1 0.15

not all are practiced
- Leadership style varies from S 0.04 3 0.12

collaborative to
autocratic/authoritarian

Established performance S 0.08 3 0.24
evaluation system (e.g. SPMS)
- Highly skilled Professional S 0.12 4 0.48
- Professional Development S 0.12 3 0.36

Program
TOTAL 1.0 2.72
WEAKNESSES
- Under utilization of budget for W 0.08 4 0.32

personnel services
- Under utilization of high-cost W 0.08 1 0.08

services
- Dependence on Government W 0.20 2 0.40

Subsidy
- Work processes are not clear W 0.12 3 0.36

to all
- Some management positions W 0.08 3 0.24

are occupied by designated
OICs
- Performance Monitoring W 0.12 4 0.48

System are not yet integrated
- Hospital Information System W 0.12 2 0.24

is not yet integrated
- Gender and Development W 0.06 2 0.12

(GAD) is not yet integrated
- No designated compliance W 0.08 4 0.32

office for licensing and hospital
regulatory requirements
- Communication style is W 0.06 3 0.18

mostly through grapevine
Total 1.0 2.74

F. Strategic Issues based on Internal Factors
Based on the internal factors analysis conducted using the IFE matrix, the Lung
Center of the Philippines has several strategic issues that need to be addressed to
improve its overall performance and competitiveness. Some of the key strategic
issues that need to be addressed based on the organization's internal factors are:
1. Limited revenue from business income. The Lung Center of the Philippines
relies heavily on government subsidy without which we would have been operating at
a loss. We have to improve on increasing revenue if we want to be financially
sustainable.
2. Limited capacity for inpatient services: The Lung Center of the Philippines has
limited inpatient capacity, which can restrict its ability to provide comprehensive care
to patients. To address this issue, the organization needs to invest in expanding its
inpatient facilities to accommodate more patients and improve its overall service
delivery.
3. Underutilization of services: The Lung Center of the Philippines has heavily

invested in the acquisition of new equipment, which unfortunately has not been fully
utilized and has therefore not been generating revenue as expected. We should plan
for strategies that will improve access to these services and ultimately contribute to
the center’s income.
4. Limited resources for research and development: The Lung Center of the
Philippines has limited resources for research and development, which can impact its
ability to innovate and stay competitive in the market. To address this issue, the
organization needs to invest in research and development to ensure that it is staying
up-to-date with the latest medical technologies and advancements.
5. Inefficient administrative processes: The Lung Center of the Philippines has

identified inefficient administrative processes as a weakness. To address this issue,
the organization needs to invest in streamlining its administrative processes to
improve efficiency and reduce costs.
6. Limited outreach programs: The Lung Center of the Philippines has limited
outreach programs, which can impact its ability to reach a wider patient population.
To address this issue, the organization needs to invest in expanding its outreach
programs to increase its reach and ensure that it is providing respiratory care services
to a larger number of patients.
By addressing these strategic issues, the Lung Center of the Philippines can improve
its overall performance and competitiveness, and better meet the needs of its patients
and stakeholders.

IV. STRATEGY FORMULATION
A. SWOT Matrix
Factors identified in the previous discussion on key external and internal

factors are summarized in this SWOT Matrix
Strengths Weaknesses
S1. highly skilled workforce W1. slow ICT project
S2.state of the art implementation
facilities/equipment W2. underutilization of
S3. Clear mission, vision and services
core values W3. dependence on
S4. excellent clinical core government subsidy
services for wide range of W4. lack of effective
respiratory conditions communication of strategy
S5. ISO accredited, PGS W5. limited resources for
silver trailblazer research and development
SO WO
Opportunities 1.Develop and implement 1.Market existing programs
O1. increasing training workshops for allied and advanced services to
demand for health practitioners to enable increase utilization rate and
respiratory health regional lung centers revenue
services from non 2. Conduct in-house skills 2.Secure funding to fast
communicable training workshop for use of track ICT development and
diseases special medical equipment for implementation
O2. increase respiratory health care 3.Develop communication
collaborations and 3. Develop partnerships with channels for exchange of
partnerships international organizations for skills and knowledge
(linkages, medical enhance in skills and among partner hospitals
tourism, knowledge of lung care 4.Secure funding for
international specialists institutional researches
partnerships) 4. Develop marketing
O3. Substantial strategies to advertise our
government skilled workforce and clinical
payment scheme for services
indigent patients 5.
O4. Advances in
ICT

Threats ST WT
T1. migration of 1.Provide program for 1.Plans to increase revenue
healthcare workers continuing professional from income centers to gain
T2. government development with Return enough profitability to raise
regulations allowing Service agreements salaries
non-LCP institution 2.Create committee to bargain 2.improve ICT for optimal
on LCP grounds for conditions that will protect efficiency of operations
T3. inflation rate LCP mission vision
T4. calamities/war 3.Develop contingency plans
in the event of calamities or
war
B. SPACE Matrix

Analysis:
The Strategic Position and Action Evaluation (SPACE) Matrix is a strategic

management tool that focuses on strategy formulation especially as related to the
competitive position of an organization.
Based on the result of the SPACE Matrix graph, it places LCP in the Competitive
Strategy, which means the industry is attractive but relatively unstable due to some
environmental factors such as government regulations which has a great impact on
funding hospital budget since LCP depends on the government subsidy such as HFEP,
DBM, etc.
LCP should focus on a strategy that will focus more on increasing its own hospital
revenue/income and not just depending on government subsidy.
C. Internal-External Matrix

Analysis:
The Internal-External (IE) Matrix is a vital and calculated administration tool that is
used to examine vital position and working of an organization. This matrix also
depends on an examination of the External Factors Evaluation (EFE) and Internal
Factors Evaluation (IFE) that are consolidated into a one model.
As you can see in the graph, the vertical line refers to the average weighted score of
the LCP in the EFE Matrix is 2.28 which means we have an average response to our
key external factors. While the horizontal line refers to the average weighted score of
the LCP in the IFE Matrix is 2.71 which means we also have an average response to
our key internal factors.
The region where the LCP falls can be described as "hold and maintain" which means
we should expand, but not aggressively. Expand means we should penetrate our
market/clients further and develop new services or modify the current service we have.
However, we should probably proceed cautiously and be guided by our financial
position and cash inflows.
D. Grand Strategy Matrix
Analysis:
The Grand Strategy Matrix is a tool that identifies several strategic options for
companies depending on the strength of their competitive positions and the growth of
their industries.
Based on the Grand Matrix shown above, the LCP falls to the “Quadrant I” which
means we have a Strong Competitive Position with a Rapid Market Growth. We have
identified some key factors/ implications why LCP falls to this quadrant:
Strong Internal Position: LCP has state-of-the-art facilities/equipment that we are

using to treat lung and chest diseases. We have a highly-skilled workforce that was
trained specializing on lung and chest diseases.

Competitive Advantage: LCP is designated by the Department of Health as a
National Specialty Center for the diagnosis, prevention and treatment of Lung and
Chest Diseases enabling a network of Regional Lung Care Centers. We also offer
affordable but high quality health services to all Filipinos.
E. Summary of Strategies
Strategy 1: Use data analytics for a deeper understanding of revenue cycle to find
opportunities and areas of improvement in hospital profitability
Strategy 2: Invest in Healthcare IT systems. Digital technologies offer significant

benefits to hospital profitability. Improvement in admission and discharge processes,
scheduling and coordination could reduce hospital stay, reduce nurse administration
time and increase productivity.
Strategy 3: Develop and implement marketing strategy for LCP
Strategy 4. Perform Line Item Analysis to understand monthly spending and

strategize to reduce expenses
Strategy 5. Increase the number of hospital beds through building new infrastructure.
Strategy 6. Implement corporate planning processes for prioritization of projects,

procurement of equipment and budget allocation
Strategy 7. Partner with nursing schools to provide clinical work exposure while
augmenting our nursing workforce
Strategy 8. Form alliances with local and international hospitals and organizations for
a sustainable lung transplant program
Quantitative Strategic Planning Matrix

V. STRATEGY PLAN
A. Vision and Mission
VISION: The Lung Center of the Philippines is a regionally competitive, locally

responsive premier institution for lung and other chest diseases, providing quality
healthcare through excellent service, training and research.
MISSION: We provide high quality health services and state-of-the-art facilities for
the diagnosis and management of respiratory and chest diseases, and promotion of
lung health for the Filipino people with excellence and compassion, regardless of
creed, color, sex, socio-economic status, and political affiliation.
B. Objectives (short term and long term)
1. Strategic
a. Short Term
Enhance Diagnostic Capabilities: Invest in advanced diagnostic equipment and

technologies to expand existing services to further improve the accuracy and
efficiency of diagnosing respiratory and chest diseases. This can include acquiring
state-of-the-art imaging equipment we still don’t have, like the PET scan, upgrading
those that we do have, expanding our capability for immunohistochemical staining for
tumor makers, completing our diagnostic armamentarium for diagnosing respiratory
infections including tuberculosis, and other advanced laboratory facilities.
Improve Patient Care Experience: Implement initiatives to enhance the overall

patient care experience at LCP. There is this plan to enhance patient admission and
discharge processes to a hotel-like experience. This will involve heavily the use of
advanced information communication technologies to facilitate processes, reducing
waiting times, and turn-around times, improving communication among the staff and
with patients and their families, and implementing patient-centered care approaches.
Strengthen Clinical Expertise: Provide opportunities for continuous

professional development and training for healthcare professionals at LCP. This
includes organizing conferences, skills workshops, and seminars to enhance the
knowledge and skills of the medical personnel in diagnosing and managing
respiratory and chest diseases.
Enhance Research and Innovation: Encourage and support research activities

focused on respiratory and chest diseases, aiming to contribute to advancements in
diagnosis, treatment, and prevention of respiratory diseases. We have already set a
research agenda and chosen priority topics for researches that will support new
services, or provide evidence for philhealth benefit packages or be utilized for policy
making.

Strengthen Partnerships: As the apex center for lung and chest diseases, it is
our responsibility to establish a network of lung centers with strategic partnerships
and collaborations with identified regional centers as well as international respiratory
health centers for knowledge exchange, resource sharing and collaborative research
projects. We also intend to form alliances with healthcare institutions, professional
associations, and government agencies.
Improve Operational Efficiency: Implement process improvement initiatives to

enhance operational efficiency within LCP. This can involve streamlining
administrative processes, optimizing resource allocation, and implementing
technology solutions to automate manual tasks.
Enhance Community Outreach and Education: Expand community outreach

programs aimed at promoting lung health, increasing awareness about respiratory
diseases, and providing education on preventive measures. This can involve
conducting health fairs, educational campaigns, and partnering with community
organizations.
Strengthen Financial Sustainability: Develop strategies to improve the

financial sustainability of LCP. This can include optimizing revenue streams,
exploring partnerships with health insurance providers, and implementing cost-saving
measures without compromising the quality of care.
b. Long Term
Regional Center of Excellence: Position LCP as a recognized regional center of

excellence for respiratory and chest diseases. This involves becoming a leading
institution in the field, renowned for providing exceptional healthcare services,
conducting cutting-edge research, and offering advanced training programs. Taking
responsibility for empowering and assisting regional lung centers to fulfill their
mandate.
Advanced Technology Adoption: Continuously invest in and adopt advanced

medical technologies and equipment to enhance the diagnostic and treatment
capabilities of LCP. This includes staying updated with the latest advancements in
respiratory care and ensuring access to state-of-the-art facilities and technologies as
well as having a fully implemented hospital information system fully integrated with
the finance, human resource, laboratory information systems and electronic medical
records.
Research and Innovation Leadership: Foster a culture of research and

innovation within LCP, aiming to contribute to scientific knowledge, breakthrough
discoveries, and advancements in respiratory and chest diseases. This involves
encouraging research collaborations, securing research funding, publishing research
findings in reputable peer-reviewed journals. Developing a clinical research and
translational center is in the works where translational research on drug development,
studies of disease mechanisms, including proteomics, genomics, genetics,
metabolomics, and animal models will be performed.

Enhanced Community Outreach: Strengthen community engagement and
outreach programs to promote lung health, raise awareness about respiratory diseases,
and provide education on preventive measures. This includes organizing health
campaigns, participating in community events, and collaborating with local
organizations to reach a wider audience.
Academic Collaboration and Training Excellence: Foster collaborations with

academic institutions and professional associations to enhance training programs,
mentorship opportunities, and continuing education for healthcare professionals. This
involves establishing partnerships for joint researches among the network of regional
centers, developing specialized training courses, and attracting renowned experts as
faculty or guest speakers.
Patient-Centered Care and Experience: Continuously improve the patient care

experience by prioritizing patient-centered care, personalized treatment plans, and
holistic support services. This includes improving our patient feedback mechanisms,
enhancing communication channels, and ensuring compassionate and empathetic care.
Collaboration and Partnerships: Forge strategic partnerships and

collaborations with national and international healthcare institutions, research
organizations, and industry stakeholders. This involves sharing knowledge and best
practices, collaborating on research projects, and leveraging shared resources to
advance respiratory care.
Accessible and Affordable Healthcare: LCP will prioritize providing accessible

and affordable healthcare services to the underserved and marginalized communities.
This can involve offering discounted or subsidized healthcare services, establishing
outreach programs in remote areas, or partnering with government agencies and non-
profit organizations to improve healthcare access.
Community Health Programs: LCP will develop and support community health
programs aimed at promoting preventive healthcare, disease awareness, and health
education. This can include organizing medical missions, health screenings,
vaccination drives, and awareness campaigns on topics like lung health, respiratory
diseases, and healthy lifestyles. Community Outreach Programs were held every
World Asthma Day and World Tuberculosis (TB) Day (March), World No Tobacco
Day (May), World COPD Day (November).
Environmental Sustainability: LCP can implement environmentally sustainable

practices within its operations. This can involve adopting energy-efficient systems,
reducing waste generation, promoting recycling and proper waste management, and
minimizing the carbon footprint of the organization. LCP already participated in tree
planting initiatives and support environmental conservation projects. Tree Planting
Activity is conducted every August during the Lung Month Celebration.
Employee Well-being and Development: LCP can prioritize the well-being and
professional development of its employees. This can include providing a safe and
inclusive work environment, promoting work-life balance, offering training and
development programs, and supporting employee health and wellness initiatives.

Collaboration with Stakeholders: LCP can collaborate with various stakeholders,
including government agencies, non-profit organizations, and other healthcare
providers, to address critical healthcare challenges in the community. By working
together, LCP can leverage collective resources and expertise to make a greater
impact on healthcare outcomes.
Ethical Practices and Governance: LCP can ensure ethical practices and strong
governance throughout its operations. This includes maintaining transparency,
integrity, and accountability in financial reporting, adhering to regulatory standards,
and promoting ethical conduct among employees.
2. Financial Objectives
a. Short term
Increase Profitability. First, we need to do an in-depth analysis of our revenue cycle,

identify areas or opportunities to reduce cost, increase productivity or increase
utilization of services and increasing efficiency.
Increase Revenue from non-health care related activities. Explore areas in the
premises which can be rented out to concessionaires.
Implement financial accountability from income centers. Each income center

should be monitoring its own revenue, expenses, and budget utilization as well as
accomplishments of strategic initiatives.
b. Long Term
Sustainable Financial Growth: Since this is our weakness, we want to strive for
sustainable financial growth to ensure the long-term viability of LCP. This includes
developing sound financial management practices, exploring diversified revenue
streams, and optimizing resource allocation to support the organization's strategic
objectives.
C. Recommended Business Strategy
1. Use data analytics for a deeper understanding of revenue cycle to find

opportunities and areas of improvement in hospital profitability. Financial reporting
constitutes the bedrock for decision making. But it must be analyzed in detail and
presented graphically for better grasp of the financial health of our institution, to make
decisions and take informed actions.
2. Invest in Healthcare IT systems. Digital technologies offer significant benefits to

hospital profitability. Improvement in admission and discharge processes, scheduling
and coordination could reduce hospital stay, reduce nurse administration time and
increase productivity.
3: Develop and implement marketing strategy for LCP. This has been a common
clamor among the clinical departments and the most under-used or un-used strategy

for increasing utilization and therefore revenue from the existing diagnostic and
medical services of the LCP.
4. Perform Line Item Analysis to understand monthly spending and strategize to

reduce expenses. This is key to identifying effective ways to reduce costs and to
eliminate potential losses in order to maintain profitability.
5. Increase the number of hospital beds through building new infrastructure. It is in

our mandate to provide at least 500 beds for the LCP, as the National Specialty Center
for lung and chest diseases. Respiratory conditions being in the 10 ten causes of
morbidity and mortality, with rising trends noted in the past decade, demand for
respiratory health services is on the rise and we have to make sure we are up to the
challenge. There is no room for expansion in the current infrastructure and it is about
time that the west wing which was destroyed in the fire, be reconstructed. In fact, a
modern version is being planned which once constructed will provide a 1000- bed
capacity hospital with state of the art facilities and equipment.
6. Implement corporate planning processes for prioritization of projects, procurement

of equipment and budget allocation. It is not clear to the income centers how projects
are approved or budget allocated. The corporate planning committee has just been
recently formed and full implementation should create more efficient implementation
of projects.
7. Partner with nursing schools to provide clinical work exposure while augmenting
our nursing workforce. Diminishing workforce due to migration has affected mainly
our nursing staff. Partnering with nursing schools provides a steady supply of trainees
who may eventually stay on as nursing staff.
8. Form alliances with local and international hospitals and organizations for a
sustainable lung transplant program. One of our flagship programs is lung transplant
program, and if successful, LCP will be the first in the country and would definitely
put as at par with our south east Asian counterparts. Having such a program in our
country would give hope to patients who would otherwise die if not for this
intervention. Organ transplantation is already being performed in the country for
kidney, liver, heart. It is only a matter of time before we can do the same for the lungs.
D. Corporate Social Responsibility.
Corporate Social Responsibility (SCR) is the idea that a company should play a
positive role in the community and consider the environmental and social impact of
business decisions. It is closely linked to sustainability - creating economic, social and
environmental value and ESG, which stands for Environmental, Social, and
Governance. All three focus on non-financial factors that companies, large and small,
should consider when making business decisions. LCP being in the healthcare
business, having a strong corporate social responsibility. All of our decisions making
is aligned with our core functions: providing quality respiratory health care, providing
education and training to produce respiratory health experts, embarking on researches
that will ultimately improve respiratory health outcomes, developing a strong
advocacy arm to promote healthy lungs through patient education and healthy

environment through clean air programs and lastly, strengthening linkages to regional
hospitals to expand the reach of our specialized services.
E. Financial Projections
LCP can develop financial projections by analyzing historical financial data, and
considering factors such as patient volume, healthcare service pricing, and operational
costs. Financial goals can include revenue growth targets, cost reduction initiatives,
and improving financial sustainability. Regular monitoring of actual financial
performance against projections will help LCP make informed decisions and take
corrective actions if necessary. We created two scenarios, one with our regular
targets of 10% annual increase in revenue while maintaining expenses to 5 % or less
and a best case scenario, where we aim for 20% annual increase in revenue and a 10%
increase in operating or investment expenses.
Scenario 1:
Note: 2021 is the baseline for the financial projections for 2022 to 2028. As of this
moment the 2022 Statement of cash flows is not yet finalized for the Lung Center of
the Philippines. Financial projections for revenue and cash inflows are based on a
10% annual increase, while expenses and cash outflows are projected to increase by
5% annually.
Scenario 2:
Note: 2021 is the baseline for the financial projections for 2022 to 2028. As of this
moment the 2022 Statement of cashflows is not yet finalized for the Lung Center of
the Philippines
Financial projections for revenue and cash inflows are based on a 20% annual
increase, while expenses and cash outflows are projected to increase by 10% annually.

Supporting Functional Strategies.
1. Production/Operations: The Hospital Support Services is made up of different

units that ensure that the core functions of the hospital are achieved.
a. The Human Resource Department is responsible for the recruitment, screening,

training and retaining personnel that will make up the workforce. The department is
tasked with maximizing employee productivity and engagement with the Center’s
mission and vision.
b. Procurement and Division formulates and implements polices and plans
pertaining to procurement requirements, purchasing, contract management and
monitoring.
c. Materials Management Division manages logistics, stock levels, materials quality
and more. It is in charge of inventories and production requirements.
d. The General Services Department monitor and maintain the operations of hospital
infrastructure and equipment. They oversee building of new infrastructure,
renovations, preventive maintenance of equipment, utilities management and waste
management.
2. Marketing Committee This is still sorely lacking in our Center and will have to
be created, but there are several activities that we can already start implementing:
conduct market research to understand patient needs, preferences, and healthcare
trends; develop a marketing strategy to raise awareness about LCP's services, target
the right patient segments, and differentiate from competitors; and implement
marketing tactics such as digital marketing, community outreach, and collaborations
with referring physicians and healthcare institutions.
3. The Finance Department is mainly responsible for financial statements and

analysis. It should be able to track and manage financial resources effectively.
Monitoring of cash flow, budgeting and financial forecasting need to be in place to
ensure financial stability. It is also their responsibility to explore funding
opportunities, partnerships, and cost-saving initiatives to support LCP's financial
goals and sustainability.
4. Personnel constitutes an essential resource of the center. LCP should have a

strategic approach to human resource management, including recruitment, training,
and retention of qualified healthcare professionals. We should implement the
performance management systems to assess and enhance employee performance. At
all times, try to foster a positive work culture that promotes teamwork, collaboration,
and employee engagement.
5. MIS/IT. The Management Information System Division is responsible for

development, procurement and implementation of information and communication

technology in the clinical and administrative areas of the hospital to improve
operational efficiency and data management. The division can assist in data analytics
of clinical and administrative departments to draw out actional insights that may aid
in decision making.
By aligning these functional strategies with LCP's specific goals and objectives, the
organization can enhance its financial performance, improve operational effectiveness,
attract and retain top talent, reach target patients effectively, and leverage technology
for better patient care and outcomes.
VI. IMPLEMENTATION AND CONTROL
A. The Balanced Scorecard
Perspective Objectives Indicators Initiatives
Customer Increase in Achieve health Health Improve turn

health outcomes targets outcome around times for
outcomes indicators processes.
Increase in 10% annual Census Strengthen

census of new increase in census Marketing
services activities
>80%
Increase delightedness in CSS report Patient First
customer CSS initiative
satisfaction
Internal Quality Efficient delivery Turn-around Review process

Processes Patient Care of patient care times flows and
and Services and admin timelines of
procedures processes
Research Institutional Completed Develop

initiatives researches/multi- researches program for
center research researchers
Advocacy Increase in Census Expand projects

Projects patients reached to involve
through regional partners
community
outreach
Linkages Engagement of Linkage Implement

activities Regional lung checklist knowledge/skills
centers exchange
program

Learning and Continuing 80% receiving EDT/HR HR leadership
Growth professional HR data skills workshop
development initiated/endorsed
activities CPD activity
New Completed infra Engr Forward

infrastructure projects on time monitoring feasibility plan
checklist for west wing to
potential funders
New Acquired new MSD Implement

equipment equipment as monitoring corporate
programmed checklist planning process
Financial Increase 10% Annual Financial Data Analytics

Revenue from increase Statements
Business Line Item
Income and Analysis
Subsidy
Income Center
financial
performance and
budget
utilization
B. Contingency Planning. Contingency planning for the Lung Center of the

Philippines (LCP) can involve several key aspects to ensure preparedness and
resilience in the face of potential risks and disruptions. Here are some elements to
consider in contingency planning for LCP:
1. Risk Assessment: An annual comprehensive risk assessment is conducted

regularly to identify potential risks and their potential impacts on LCP's operations.
The safety committee after identifying potential risks should prepare a clear cut plan
which can be activated when the need arises: natural disasters, pandemics,
infrastructure failures, financial uncertainties, regulatory changes, and other relevant
factors.
2. Business Continuity Plan: Develop a robust business continuity plan that outlines
strategies and procedures to ensure the continuity of critical operations during a crisis
or disruptive event. This plan should include clear protocols for emergency response,
communication channels, backup systems, and alternative arrangements for essential
services.

3. Emergency Response Team. We have in place a Health emergency response
system (HEMS) composed of key personnel from various departments to oversee and
coordinate actions during emergencies. This team have clearly defined roles and
responsibilities and are trained in emergency protocols. This is the team that led the
response to the recent pandemic.
4. Communication Plan: A comprehensive communication plan is in place to ensure

effective and timely communication with internal stakeholders (employees,
management, and board) and external stakeholders (patients, partners, suppliers,
regulatory bodies, etc.) during a crisis. This included both internal and external
communication channels and protocols.
5. Resource Management. The administration should assess and allocate necessary

resources to support contingency planning efforts. This should include financial
resources, human resources, medical supplies, equipment, and infrastructure needed
to maintain critical operations during an emergency.
6.Training and Drills: Regular training sessions and emergency drills are conducted
to familiarize staff with contingency procedures and ensure they are well-prepared to
respond in real-life situations. This can include training on emergency protocols,
evacuation procedures, first aid, and crisis communication.
7. Supplier and Partner Relationships. Maintain strong relationships with key

suppliers, partners, and service providers to ensure continuity of essential supplies and
services during a crisis. Establish contingency plans with critical vendors and have
backup options identified.
8. Regular Review and Updates: Contingency plans should be reviewed, tested, and
updated periodically to ensure they remain effective and relevant. Lessons learned
from past incidents or drills should be incorporated into future planning efforts.
Contingency planning is an ongoing process that requires continuous

monitoring, evaluation, and adaptation based on changing circumstances and new
risks that may emerge. By implementing a robust contingency plan, LCP can
minimize the impact of potential disruptions and ensure the continued provision of
quality healthcare services to its patients.

Reference
1. PD No. 1823. The LawPhil Project. January 16, 1981.

2. ADMINISTRATIVE ORDER No. 2021-0032 Il. SUBJECT: Implementation of the Philippine Health
Facility Development Plan (PHFDP)
3. LCP Strategy RoadMap version 2022
4. https://rcepsec.org/wp-content/uploads/2020/11/Summary-of-the-RCEP-Agreement.pdf.
5. https://www.dbm.gov.ph/index.php/secretary-s-corner/press-releases/list-of-press-releases/2774-
ph-inflation-rate-eases-for-4th-straight-month-at-6-1-in-may-
2023#:~:text=The%20country%27s%20inflation%20rate%2C%20or,)%20today%2C%206%20June%202
023.
6. Primary Health Care for Noncommunicable Diseases in the Philippines. Ulep VG et al. Discussion
Paper Series 2020-39 https://pidswebs.pids.gov.ph/CDN/PUBLICATIONS/pidsdps2039.pdf
7. Sai Lomte, Tarun. 2023. Researchers model possible COVID-19 trajectories for 2023.
News-Medical, viewed 17 June 2023, https://www.news-
medical.net/news/20230314/Researchers-model-possible-COVID-19-trajectories-for-
2023.aspx.
8. Policy brief: Human Resources for Health Migration https://hrh2030program.org/wp-
content/uploads/2020/08/x12.8_HRH2030PH_Migration-policy-brief.pdf
9. The Advancement in Information and Communication Technologies (ICT) and Ecopnomic

Development: A Panel Analysis. Audi M. et al. April 2021.
https://www.researchgate.net/publication/354545270_The_Advancement_in_Information_and
_Communication_Technologies_ICT_and_Economic_Development_A_Panel_Analysis
10. Universal Health Care Act RA 11223.

https://icrs.gcg.gov.ph/files/c6UikC9m39wFV1cCUNHV.pdf
11. An Act Institutionalizing a National Integrated Cancer Control Program and Appropriating
Funds Therefor RA 11215. https://lawphil.net/statutes/repacts/ra2019/ra_11215_2019.html
12. An Act Creating the Philippine Center for Disease Control and Prevention, Defining its
Powers and Functions and for Other Purposes.
https://legacy.senate.gov.ph/lisdata/3258829454!.pdf
13. Annual Audit Report on the Lung Center of the Philippines. 2018-2021

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STRATEGIC MANAGEMENT PAPER

LUNG CENTER OF THE PHILIPPINES

Prof. Alejandro P. Bautista, MBA, PhD

Strategic Management Paper on Lung Center of the Philippines

To address the challenges, we recommend a more in depth analysis of the revenue

Strategic Management Paper on Lung Center of the Philippines 1

Executive Summary ………………………………………………………………. 1

Strategic Management Paper on Lung Center of the Philippines 2

Strategic Management Paper on Lung Center of the Philippines 3

Dr Vincent Balanag, Executive Director

Strategic Management Paper on Lung Center of the Philippines 4

Strategic Management Paper on Lung Center of the Philippines 5

II. External Environment Analysis

1. Political Factors. As a Government Owned and Controlled Organization GOCC),

a. Upcoming Local Elections. Political instability and unrest, especially around

Strategic Management Paper on Lung Center of the Philippines 6

c. Increase in the popularity of the government payment scheme of healthcare

3. Sociocultural Factors. The changing landscape of the surrounding community

a. Increase in Non-Communicable Diseases. Non communicable diseases are now the

b. Emergence of new SARS-CoV2 variants. Little is known about the future of

Strategic Management Paper on Lung Center of the Philippines 7

c. Continuous Migration of Healthcare Professionals. One of the most important

4. Technological Factors. Healthcare technology refers to any IT tools or software

a. Emerging Trends in AI in Healthcare. Advances in medical devices and equipment,

b. Advancement in Internet and Communication Technology is linked to economic

Strategic Management Paper on Lung Center of the Philippines 8

b. RA No. 11215 (An Act Institutionalizing a National Integrated Cancer Control

a. Intermittent Electricity and Water Supply. Intermittent electricity affects medical

Strategic Management Paper on Lung Center of the Philippines 9

The importance of water supply to LCP particularly during a pandemic cannot be

b. Natural calamities (e.g. earthquake). Natural calamities can have a significant

B. Immediate industry and competitive environment

Strategic Management Paper on Lung Center of the Philippines 10

5. Intensity of competitive rivalry: The intensity of competitive rivalry in the

C. Threats and Opportunities

Strategic Management Paper on Lung Center of the Philippines 11

3. Sociocultural conditions. The migration of health care workers, particularly

4. Government regulations: Changes in government regulations related to healthcare

5. Competitive pressures: The respiratory healthcare industry is highly competitive,

6. Technological advancements: Rapid advancements in technology can make

1. Growing demand for respiratory care: There is a growing demand for

2. Implementation of advanced respiratory services: The Lung Center of the

3. Partnerships and collaborations: Collaborating with other healthcare providers

4. Advances in technology: The Lung Center of the Philippines can leverage

Strategic Management Paper on Lung Center of the Philippines 12

Strategic Management Paper on Lung Center of the Philippines 13

1. Political and Economic uncertainty: The political and economic environment

3. Growing demand for respiratory health services: Respiratory conditions

4. COVID-19 endemic. As we shift to a healthcare landscape where COVID-19

III. Internal Environment Analysis

A. Company Resources and Capabilities. The LCP is located at the heart of

Strategic Management Paper on Lung Center of the Philippines 14

a. Pulmonary Critical Care and Sleep Medicine Department is a major clinical

b. Thoracic Surgery and Anesthesia Department of the Lung Center of the

Strategic Management Paper on Lung Center of the Philippines 15

c. Radiology and Radiotherapy Department of the Lung Center of the Philippines

d. Pathology and Laboratory Medicine Department is at the forefront of

e. Emergency Medicine and Outpatient Department is made up of 4 divisions: