After three (3) years and nine (9) months of bidding and negotiations, the UP-PGH Faculty Medical Arts Building (FMAB) Project finally became a reality. On June 18, 2009, in celebration of the 101st anniversary of the University of the Philippines (UP), the contract for the UP-PGH FMAB Project was signed by UP President Emerlinda Roman and Dr. Edwin Mercado, President and Chief Executive Officer of the Daniel Mercado Medical Center (DMMC). The historic ceremony was witnessed by UP Regents Abraham Sarmiento and Nelia Gonzalez, UP Manila Chancellor Ramon Arcadio, PGH Director Carmelo Alfiler and other System-Wide, UP Manila and PGH officials. The DMMC Board of Directors was also in attendance led by its Chairman, Mr. Zosimo Malabanan, as well as top management officials from DMMC.

The UP Board of Regents, during its 1239th meeting on December 17, 2008, confirmed the awarding of the Project to DMMC. The recommendation was submitted to the BOR by Dr. Yolanda Robles, Chair of the Special Bids and Awards Committee for the UP-PGH FMAB Project, after DMMC complied with all the requirements of the bidding process. The Notice of Award (NOA), signed by UP President Emerlinda Roman last February 5, was received by Dr. Mercado on February 17, 2009.


The UP-PGH FMAB project is a pioneering activity of the University designed as a retention and incentive program for the faculty members of UP Manila (UPM), as a source of additional income for PGH’s budget, a venue for the geographic practice of profession among faculty members of UPM, an accessible and affordable ambulatory facility for private patients and to strengthen the distinction of UPM and PGH as the National Health Sciences Center and as the National University Hospital, respectively.


The contract entails the lease with conversion, rehabilitation, development and operation of the PGH Dispensary Building as the UP-PGH FMAB for a period of 25 years. DMMC is given an 18-month rent-free construction period starting from the time of contract signing. Under the Terms of Reference, DMMC shall lease the building from UP-PGH and sub-lease the clinic spaces to accredited PGH consultants. There is no need for the consultant to buy stocks to practice or buy/advance lease of clinic. DMMC is responsible for the fiscal and non-medical operations of FMAB and is allowed to manage and operate the concession areas which include the following: Laboratory, Radiology, Pharmacy among others.