FAQs

Frequently Asked Questions

End-Stage Renal Disease (ESRD)

What is ESRD?

End-Stage Renal Disease is the 8th cause of mortality in the Philippines. As of 2018, its prevalence growth is 10%-12%.

How many Filipinos are afflicted?

The estimated number of patients who went through Hemodialysis as of 2018 is 80,000. Based on the 12% growth, there is a need for additional 100 dialysis centers for 2019.

How is dialysis administered?

80% of patients with ESRD do dialysis sessions 2x a week on an average of 4 hours per session. Only 20% of patients follow the recommended frequency of 3x a week.

How many sessions do you do in a day?

A 15-seater center can do 45 patients/sessions per day, at 3 shifts per day.

Up to how many shifts can a center operate in a day?

Based on a 4.5-hour shift, the maximum time a center can operate is from 3AM to 11PM at 4 shifts per machine.

Government Support (ESRD)

Which government institutions financially support dialysis patients?

a. PhilHealth covers 90 out of the regular 104 hemodialysis sessions per year. PhilHealth’s biggest expenditure goes to Hemodialysis procedures, amounting to P8.4 Billion. b. The PCSO (Philippine Charity Sweepstakes Office) and DSWD (Department of Social Welfare and Development) also give financial support.

What are the average payment terms of these government institutions?

a. PhilHealth: 3 months b. DSWD: 4 weeks c. PCSO: 2 months

Franchising Support

Who will scout for my site? Will Medline design my center?

a. The franchisee is responsible for their site location with guidelines provided by MedLine. MedLine will inspect the site to assess its potential upon franchise fee down-payment (P200,000.00 + VAT). If the site is disapproved due to unmet requirements, the franchisee will have to look for a new location. 1. Be located at the ground floor; if not, the building should have a provision for an elevator; 2. Have ample parking space; 3. Have a minimum area of 240-250 sqm; 4. Not be a flood-prone area; 5. Highly accessible to public transportation; and 6. Have a high-density population

What permits do I need to secure?

a. The franchisee needs to have their Articles of Incorporation prepared for SEC registration. b. Local permits may be processed upon receiving the SEC registration, to be followed by the Application of Permit to Construct and License to Operate from DOH. Franchisor will provide processing guidelines for all letters, permits, and certificates.

Who will construct my center?

The construction of the dialysis center is the franchisee’s responsibility. MedLine will provide the electrical loading and equipment specifications.

Can I source my own suppliers?

Medical equipment and supplies must be exclusively ordered from MedLine’s accredited suppliers. Other office furniture and fixtures may come from franchisee’s choice of suppliers without too much deviation from MedLine specifications.

Who will hire my staff? Do I need an in-house doctor?

It will be the franchisee’s responsibility to hire its staff, but MedLine helps in sourcing employees thru our centralize hiring system. MedLine will provide job descriptions and the salary grade structure for the franchisee. Yes, the center must have an in-house doctor. MedLine can recommend a Nephrologist for the center. The Head Nephrologist may not be in the center all the time, but he will have his pool of physicians-on-duty who must always be present during sessions.

Who will train my staff?

MedLine will have an immersion program with the management team and the owners of the center. Separate training will also be conducted for all the center’s staff. MedLine, through its appraisal system, will continue to provide support and will recommend additional training as needed. MedLine is an accredited nephro nursing training center.

How will I advertise my center?

MedLine has vast experience in attracting patients. MedLine will guide the franchisee on how to use its monthly advertising budget, from pre-opening to the launch of the center. Collateral designs will be provided by MedLine to be printed by the franchisee for distribution. The location map and contact details of the center will be included in MedLine’s website. MedLine also engages in system-wide advertising to increase brand awareness by the use of different forms of media such as print, broadcast media, support media, and digital media.

Will you help us manage our sales and inventory?

Yes, all franchisees of MedLine are mandated to use the MedLine System for monitoring and inventory control using its end-to-end management Enterprise Resource Planning System (ERP) that the franchisee must subscribe to annually for a fee.

How much time do I need to put into managing the center?

MedLine will provide assistance for one week upon the opening of the center. The management only needs 2-3 hours per day for the first 2 months of operations for monitoring. The center can be managed remotely by the management and owners via the ERP system. MedLine also provides continuous support by conducting monthly audit and periodic performance evaluation.

Is there a warranty on dialysis machines?

Yes, there is. There is a 6-month warranty on dialysis machines. The suppliers will send technicians for on-site repair if needed.

Financials

How much is the investment?

For a 15-machine ready center, the investment, worth P15M, is spread over 16 months. This includes ten months’ worth of OPEX. (For this investment, there will only be two brand new machines and five refurbished machines initially. Succeeding machines will be purchased from the income of the center.)

How long is the ROI?

Payback period is 4 years. Others: 1. Can I charge extra per session? Subject to MedLine’s approval. 2. Can I implement a cash basis payment? Yes, this happens when a patient has already exhausted all grants from PhilHealth, DSWD, and PCSO.