Hospital heads must be trained in health governance: FV Hospital CEO

FV became the first wholly foreign-invested hospital in Vietnam 20 years ago. What do you think about the 20-year journey of providing services of international standards in the country, and why did you choose Vietnam instead of another?

In 1996, the Vietnamese government had a report on the local healthcare sector, including infrastructure conditions, and released it in March 1997. The report called for FDI into the private health sector to help reduce the burden on the public sector and improve healthcare quality in the country. At that time, we had some ideas to invest in Vietnam.

To be exact, we took this special chance and then started building a hospital of international standards for Vietnamese. On March 11, 2003, FV Hospital was officially launched, becoming the first wholly foreign-invested hospital in Vietnam with state-of-the-art facilities and a team of experienced medical doctors.

Does it mean you had wanted to come to Vietnam before that?

That’s right. There were many reasons why we selected Vietnam. First, Vietnam and France have an established and closed relationship, especially in the health sector. Many Vietnamese medical students were sent to France for studying during the 1980s and 1990s.

In terms of investment, of course, market potentials must be considered. According to the 1997 report, Vietnam’s health sector was undeveloped but foreign investors were already present in the country at that time, and the life of the Vietnamese was improved, while the middle class already started to grow. This meant people needed higher quality healthcare.

Therefore, we saw opportunities not only in healthcare but also in other sectors.

Market potential appeared based on two factors in this developing country. First, the locals had higher incomes to pay for high-quality medical services as social insurance could not cover all. Second, the government had to introduce policies attractive to foreign investors.

Why did you choose Ho Chi Minh City, but not another province or city like Hanoi?

At that time, we met with Ministry of Health officials and we were advised to invest in Ho Chi Minh City and we did not know why. Later on, we knew that another investor had a Vietnamese-French hospital project in Hanoi. Was this destiny? (Smiling).

In fact, Ho Chi Minh City offered all we’re looking for, such as a large population and a high average income.

Does Vietnam create favorable conditions for investors, especially in the health sector?

When investing in the health or any sector in Vietnam, investors have to experience the same process and there is almost no policy giving priority to the health sector.

The government and public health sector have a great social responsibility but cannot pay for high-quality healthcare. Therefore, the private sector taking part in the healthcare industry helps reduce the burden. Thus, the government and public health sector can devote resources to other healthcare services to deal with patient overload.

Is the 20-year journey of investing in Vietnam your right choice?

I may say that it is totally right for me. I have lived and worked in Vietnam for 25 years. My two sons were born in FV and grew up in Ho Chi Minh City. My life partner is a little woman born in Vinh town, Nghe An province. My employees and associates are Vietnamese mostly. I love Vietnam like I love FV - my brainchild to which I've dedicated my heart and mind.

Has your enthusiasm been proven through the numbers and doctors taking care of nearly five million patients, with three quarters being Vietnamese and the rest foreigners?

The eight “golden” factors making FV special are family culture, belief in medical ethics, excellent management team, loyal and dedicated employees, professional doctors, patient-centered care, world-class infrastructure, and international health standards.

Besides, FV was the first hospital in Vietnam to secure HAS, a French certificate, in 2007, and Joint Commission International (JCI) certification in 2016, 2019, and 2022. Therefore, FV became the first hospital in southern Vietnam to obtain the JCI certificate three times. FV has 230 inpatient beds and 36 specialties including six key specialties namely obstetrics, oncology, ophthalmology, orthopedics, gastroenterology and hepatobiliary, and cardiology. We can receive up to 1,500 patients per day.

In Vietnam, it is normal that medical doctors are not good at running a hospital, but you are known as a good doctor and good manager, making FV one of the best hospitals in Vietnam. Can you share your experiences and give some advice to doctors cum managers in Vietnam?

Thank you for the compliment. To become a doctor, they spend much time studying and researching and learn nearly nothing about corporate governance. In Vietnam, to become a hospital director, ones must be a doctor first. In my opinion, this is not right.

In developed countries, hospital directors must be trained in public or private health governance. There are schools for this training. Running and operating a hospital is difficult and complicated. I faced many difficulties when governing FV in the early stage. I had to learn from and listen to experts in governance. Then, I understood how to run and manage my hospital.

In 2022, FV acquired the American Chiropractic Clinic, or ACC, marking the first milestone in FV’s acquisition and merger chapter in Vietnam. What factors led FV to the decision? Are there any M&A deals to come?

We acquired the ACC chain because ACC is providing chiropractic services that were not available at FV before. The two sides can support each other.

Another reason, FV is in Ho Chi Minh City while ACC clinics are in Hanoi, Danang, and of course Ho Chi Minh City. Following the acquisition, we are present in Hanoi and Danang.

We will acquire more hospital and clinic chains in the future. However, I cannot tell you now.

After your 20-year journey, what is the next five-year plan for FV?

FV will inaugurate the “H” building covering 15,000 square meters to expand our cancer treatment center, and the center for gastroenterology and hepatobiliary, and provide new services like vitro fertilization, hemodialysis, bone marrow transplants, and so on.

At the same time, FV will put into operation a large-scale clinic and diagnostic center providing day surgery services in downtown Ho Chi Minh City. We call it a natural development, to expand all our services.

With 20 years of experience working in Vietnam’s health sector, how do you evaluate the industry, especially in the private sector? Do you have any recommendations for further growth of FDI firms like FV?

Compared to 1997 when I first arrived in Vietnam, the private health sector has been developing strongly with a wide range of private clinics and hospitals nationwide.

I don’t have any recommendations. But with my own experiences in investing in Vietnam, when you encounter problems with authorities at a lower level, you should work with those at a higher level as the way they understand the law and guiding documents is different.

Most Vietnamese citizens with high incomes seek medical treatment abroad. So, does FV have any plans to attract these clients?

This depends a lot on the media. Residents need to know about the hospital and its services to come for treatment.

Last year, FV provided treatment for more than 270,000 patients, most of them had gone abroad for this. When the Covid-19 pandemic broke out in 2021, many looked for cancer treatment at FV as they could not go abroad.