Headcount 1,186,000

Inc/Dec from previous year

Average EMF per capita 14,467
Loss Ratio 79%
Average Claims per capita 11,423 ###
Medical Inflation

INCOME STATEMENT

2019

Membership fees from medical plans 16,470,628,601

Administrative services only and application fees 239,640,717
16,710,269,318
COST AND EXPENSES
Healthcare benefits, claims and commission 14,688,492,598
Healthcare benefits 12,937,279,955
Cost of availments 12,303,761,324
Provision for IBNR claims 633,518,631
Commisions 947,023,589
Other direct costs 804,189,054
Claims processing, contractual services and PCC 477,413,887 0.00%
Personal expenses 231,506,136
Depreciation 57,244,617
Others 38,024,414
General and administrative expenses 1,060,065,654 6.34%
Selling and marketing expenses 629,293,104 3.77%
16,377,851,356 98%
OTHER INCOME (Expense)
Interest income 6,7,9,29 37,748,872
Interest expense 18 (40,201,179)
Others 8,12,13 20,640,471
INCOME BEFORE SHARE IN NET INCOME OF 18,188,164
ASSOCIATES 350,606,126

SHARE IN NET INCOME OF ASSOCIATES 2,725,375

OTHER INCOME (NET) 20,913,539 0.13%

INCOME BEFORE INCOME TAX 353,331,501

PROVISION FOR INCOME TAX 100,360,236

NET INCOME 252,971,265

BALANCE SHEET
2019
ASSETS
Current Assets
Cash and cash equivalents 773,808,705
Short-term investments 0.00%
Trade and other receivables 8,125,728,080 55.32%
Prepaid expenses and other current expenses 534,725,195
9,434,261,980 85.5%
Noncurrent Assets
Available-for-sale investments 139,276,675
Investment in associates 16,647,995
Investment in subsidiary
Property and equipment 754,831,891
Software cost 56,776,003
Investment property 8,033,687
Deferred tax assets 581,764,371
Other noncurrent assets 42,734,217
1,600,064,839 14.5%
11,034,326,819

LIABILITIES AND EQUITY

Current Liabilities
Healthcare plan liabilities 7,527,825,018 58%
Accrued liabilities and other payables 1,920,991,407 11.66%
Lease liabilities - current portion 50,749,607
Income tax payable
Loans payable 40,000,000
9,539,566,032
Noncurrent Liabilities
Loans payable 290,000,000
Retirement liability 161,203,451
Lease liabilities - noncurrent portion 131,816,515
Other noncurrent liabilities 59,505,824
642,525,790
10,182,091,822
Equity
Capital stock 502,694,600
Capital paid in excess of par value 26,766,604
Treasury stock (36,698,230)
Subscribed capital 10,000,000
Stock dividend distributable
Share in remeasurement gain on retirement liability of an associate 760,087
Remeasurement loss on retirement plan (50,525,163)
Retained earnings 399,237,099
Appropriate 150,000,000
Unaapropriate 249,237,099
852,234,997
11,034,326,819
Checking 0

Liquidity requirement - A 0.99

 1,323,441 1,430,751 1,571,659 1,740,992
11.59% 8.11% 9.85% 10.77%
13,981 13,737 16720.62319 17556.65435
45% 61% 69% 69%
6,310 ### 8,409 ### 11537.23 12114.0915
1% 5%

0.162616442 0.02209131681

2020 2021 2022 2023

17,593,334,759 18,217,499,136 26,279,117,920 44% 30,565,994,766

176,649,190 183,196,439 212,987,192 244,934,696
17,769,983,949 18,400,695,575 26,492,105,112 30,810,929,462

10,865,842,128 14,446,311,563 20,645,939,019 24,012,706,990

8,988,908,647 12,264,627,353 18,132,591,365 21,090,536,389
8,237,383,548 11,678,835,465
751,525,099 585,791,888
1,052,935,795 1,200,141,708 1,606,718,086 1,867,643,782
823,997,686 981,542,502 906,629,568 1,054,526,819
397,576,491 0.00% 424,917,835 0.00%
237,508,344 308,253,985
109,034,511 133,936,915
79,878,340 114,433,767
2,553,391,011 14.37% 1,712,042,796 9.30% 1,708,142,665 6.5% 1,986,789,660
514,132,785 2.89% 508,490,096 2.76% 788,373,538 3.00% 916,979,843
13,933,365,924 78% 16,666,844,455 91% 23,142,455,222 87% 26,916,476,493

51,482,584 61,412,564
(14,695,180) (2,605,032)
34,230,306 49,469,988
71,017,710 108,277,520
3,907,635,735 1,842,128,640

2,161,434 (9,416,912)

73,179,144 0.41% 98,860,608 1,701,948,727 2,166,813,534

3,909,797,169 1,832,711,728 1,647,701,164 1,727,639,436

1,583,171,664 461,391,199 411,925,552 431,909,598

2,326,625,505 1,371,320,529 1,235,775,611 1,295,729,838

2020 2021
 3,573,143,476 2,402,632,187
2,158,847,979 14.46% 3,134,655,545 45.20% 3,134,655,545 3,134,655,545
6,515,613,084 59.96% 6,810,330,125 47.14% 10,322,969,510 12,006,353,495
108,479,991 518,882,335 534,725,195 534,725,195
12,356,084,530 86.0% 12,866,500,192 13,992,350,250 15,675,734,235

139,276,675 139,276,675
18,809,429 8,952,369
200,000,000
981,835,905 903,165,929
90,449,037 142,405,366
115,114,178 114,712,957
587,289,415 483,179,344
76,139,656 68,475,316
2,008,914,295 14.0% 2,060,167,956 0 0
14,364,998,825 14,926,668,148 13,992,350,250 15,675,734,235

7,636,120,971 85% 8,408,312,509 58% 10,516,902,991 58% 12,232,511,105

2,863,663,921 16.28% 3,544,080,461 19.45% 4,151,608,330 15.80% 5,250,155,156
75,587,135 47,276,060 75,587,135 75,587,135
446,778,052 123,569,346
16,666,667
11,038,816,746 12,123,238,376 14,744,098,457 17,558,253,397

83,333,333 100,000,000
78,338,985 81,060,863 80,000,000 80,000,000
104,951,363 67,523,226 104,951,363 104,951,363
51,519,625 51,512,606 54,179,352 52,403,861
318,143,306 300,096,695 239,130,715 237,355,224
11,356,960,052 12,423,335,071 14,983,229,171 17,795,608,621

577,698,100 598,029,500
26,766,604 26,766,604
(36,698,230) (36,702,230)
100,493,975

760,087 319,939
(104,350,392) (63,757,844)
2,543,862,604 1,878,183,133 2,028,573,863 2,043,419,675
560,711,265 257,377,882
1,983,151,339 1,620,805,251
3,008,038,773 2,503,333,077 2,028,573,863 2,043,419,675
14,364,998,825 14,926,668,148 17,011,803,034 19,839,028,296
 0 0

1.12 1.06

Dividends 1220929799 1220929799 1220929799

 2,006,681
15.26%
18434.48707
69%
12719.79608
5%

0.1754050143

2024

16% 36,992,134,939 21%

281,674,900
37,273,809,839

28,946,063,636
25,524,573,108

2,145,261,873
1,276,228,655

6.5% 2,404,488,771 6.5% LINK

3.00% 1,109,764,048 3.00%
87% 32,460,316,455 87%

2,871,725,289

1,941,768,095

485,441,501

1,456,326,594
 4,364,804,922 4,364,804,922
3,134,655,545
14,473,031,818
534,725,195
22,507,217,480

139,276,675
0

981,835,905
142,405,366
115,114,178
587,289,415
76,139,656
2,042,061,195
24,549,278,675 0

58% 14,804,252,402
17.18% 6,464,850,164 17.48%
75,587,135
123,569,346

21,468,259,048

100,000,000
80,000,000
104,951,363
52,698,606
337,649,969
21,805,909,017

598,029,500
26,766,604
(36,702,230)
100,493,975

319,939
(63,757,844)
2,118,219,714

2,743,369,658
24,549,278,675
 (0)

1.05
 Module 1
Application: Financial Statements Projections

GROUP 3
Abad, Arvie
Castrillo, Chuckie
Malapitan, Jenina Joy
Santos, Marichelle

Ateneo de Manila University – Graduate School of Business

R21: Financial Management
Prof. Don Z. Brodeth
16-Jul-22
iness
MAXICARE HEALTHCARE CORPORATION
INCOME STATEMENT
2019 %

Membership fees from medical plans PHP 16,470,628,601 98.57%

Administrative services only and application fees 239,640,717 1.43%
PHP 16,710,269,318 100.00%
COST AND EXPENSES
Healthcare benefits, claims and commission 14,688,492,598 87.90%
Healthcare benefits 12,937,279,955 77.42%
Commisions 947,023,589 5.67%
Other direct costs 804,189,054 4.81%
General and administrative expenses 1,060,065,654 6.34%
Selling and marketing expenses 629,293,104 3.77%
PHP 16,377,851,356 98.01%

NET OPERATING INCOME 332,417,962 1.99%

OTHER INCOME (NET) 20,913,539 0.13%

INCOME BEFORE INCOME TAX 353,331,501 2.11%

PROVISION FOR INCOME TAX 100,360,236 0.60%

NET INCOME PHP 252,971,265 1.51%

MAXICARE HEALTHCARE CORPORATION

BALANCE SHEET
2019 %
ASSETS
Current Assets
Cash and cash equivalents PHP 773,808,705 8.20%
Short-term investments 0.00%
Trade and other receivables 8,125,728,080 86.13%
Prepaid expenses and other current expenses 534,725,195 5.67%
PHP 9,434,261,980 85.50%
Noncurrent Assets
Available-for-sale investments 139,276,675 8.70%
Investment in associates 16,647,995 1.04%
Investment in subsidiary 0.00%
Property and equipment 754,831,891 47.18%
Software cost 56,776,003 3.55%
Investment property 8,033,687 0.50%
 Deferred tax assets 581,764,371 36.36%
Other noncurrent assets 42,734,217 2.67%
1,600,064,839 14.50%
PHP 11,034,326,819 100.00%

LIABILITIES AND EQUITY

Current Liabilities
Healthcare plan liabilities PHP 7,527,825,018 73.93%
Accrued liabilities and other payables 1,920,991,407 18.87%
Lease liabilities - current portion 50,749,607 0.50%
Income tax payable 0.00%
Loans payable 40,000,000 0.39%
PHP 9,539,566,032 86.45%
Noncurrent Liabilities 0.00%
Loans payable 290,000,000 2.85%
Retirement liability 161,203,451 1.58%
Lease liabilities - noncurrent portion 131,816,515 1.29%
Other noncurrent liabilities 59,505,824 0.58%
642,525,790 5.82%
PHP 10,182,091,822 92.28%
Equity
Capital stock 502,694,600 58.99%
Capital paid in excess of par value 26,766,604 3.14%
Treasury stock (36,698,230) -4.31%
Subscribed capital 10,000,000 1.17%
Stock dividend distributable 0.00%
Share in remeasurement gain on retirement liability of an associate 760,087 0.09%
Remeasurement loss on retirement plan (50,525,163) -5.93%
Retained earnings 399,237,099 46.85%
852,234,997 7.72%
PHP 11,034,326,819 100.00%

Not to be distributed without consent of all the group members

 2020 % 2021 %

PHP 17,593,334,759 99.01% PHP 18,217,499,136 99.00%

176,649,190 0.99% 183,196,439 1.00%
PHP 17,769,983,949 100.00% PHP 18,400,695,575 100.00%

10,865,842,128 61.15% 14,446,311,563 78.51%

8,988,908,647 50.58% 12,264,627,353 66.65%
1,052,935,795 5.93% 1,200,141,708 6.52%
823,997,686 4.64% 981,542,502 5.33%
2,553,391,011 14.37% 1,712,042,796 9.30%
514,132,785 2.89% 508,490,096 2.76%
PHP 13,933,365,924 78.41% PHP 16,666,844,455 90.58%

3,836,618,025 21.59% 1,733,851,120 9.42%

73,179,144 0.41% 98,860,608 0.54%

3,909,797,169 22.00% 1,832,711,728 9.96%

1,583,171,664 8.91% 461,391,199 2.51%

PHP 2,326,625,505 13.09% PHP 1,371,320,529 7.45%

2020 % 2021 %

PHP 3,573,143,476 28.92% PHP 2,402,632,187 18.67%

2,158,847,979 17.47% 3,134,655,545 24.36%
6,515,613,084 52.73% 6,810,330,125 52.93%
108,479,991 0.88% 518,882,335 4.03%
PHP 12,356,084,530 86.02% PHP 12,866,500,192 86.20%

139,276,675 6.93% 139,276,675 6.76%

18,809,429 0.94% 8,952,369 0.43%
0.00% 200,000,000 9.71%
981,835,905 48.87% 903,165,929 43.84%
90,449,037 4.50% 142,405,366 6.91%
115,114,178 5.73% 114,712,957 5.57%
 587,289,415 29.23% 483,179,344 23.45%
76,139,656 3.79% 68,475,316 3.32%
2,008,914,295 13.98% 2,060,167,956 13.80%
PHP 14,364,998,825 100.00% PHP 14,926,668,148 100.00%

PHP 7,636,120,971 67.24% PHP 8,408,312,509 67.68%

2,863,663,921 25.22% 3,544,080,461 28.53%
75,587,135 0.67% 47,276,060 0.38%
446,778,052 3.93% 123,569,346 0.99%
16,666,667 0.15% 0.00%
PHP 11,038,816,746 76.85% PHP 12,123,238,376 81.22%
0.00% 0.00%
83,333,333 0.73% 100,000,000 0.80%
78,338,985 0.69% 81,060,863 0.65%
104,951,363 0.92% 67,523,226 0.54%
51,519,625 0.45% 51,512,606 0.41%
318,143,306 2.21% 300,096,695 2.01%
PHP 11,356,960,052 79.06% PHP 12,423,335,071 83.23%

577,698,100 19.21% 598,029,500 23.89%

26,766,604 0.89% 26,766,604 1.07%
(36,698,230) -1.22% (36,702,230) -1.47%
0.00% 100,493,975 4.01%
0.00% 0.00%
760,087 0.03% 319,939 0.01%
(104,350,392) -3.47% (63,757,844) -2.55%
2,543,862,604 84.57% 1,878,183,133 75.03%
3,008,038,773 20.94% 2,503,333,077 16.77%
PHP 14,364,998,825 100.00% PHP 14,926,668,148 100.00%
MAXICARE HEALTHCARE CORPORATION

Major plans for the next years

4. Investment in a new company and a new subsidiary - to create an ecosystem of life and health products
MAXICARE HEALTHCARE CORPORATION
INCOME STATEMENT
2021 %

Membership fees from medical plans PHP 18,217,499,136 99.00%

Administrative services only and application fees 183,196,439 1.00%
PHP 18,400,695,575 100.00%
COST AND EXPENSES
Healthcare benefits, claims and commission 14,446,311,563 78.51%
Healthcare benefits 12,264,627,353 66.65%
Commisions 1,200,141,708 6.52%

Other direct costs 981,542,502 5.33%

General and administrative expenses 1,712,042,796 9.30%
Selling and marketing expenses 508,490,096 2.76%
PHP 16,666,844,455 90.58%

NET OPERATING INCOME 1,733,851,120 9.42%

OTHER INCOME (NET) 98,860,608 0.54%

INCOME BEFORE INCOME TAX 1,832,711,728 9.96%

PROVISION FOR INCOME TAX 461,391,199 2.51%

NET INCOME PHP 1,371,320,529 7.45%

MAXICARE HEALTHCARE CORPORATION

BALANCE SHEET
2021 %
ASSETS
Current Assets
Cash and cash equivalents PHP 2,402,632,187 18.67%
Short-term investments 3,134,655,545 24.36%
Trade and other receivables 6,810,330,125 52.93%
Prepaid expenses and other current expenses 518,882,335 4.03%

PHP 12,866,500,192 86.20%

 Noncurrent Assets
Available-for-sale investments 139,276,675 6.76%
Investment in associates 8,952,369 0.43%
Investment in subsidiary 200,000,000 9.71%
Property and equipment 903,165,929 43.84%
Software cost 142,405,366 6.91%
Investment property 114,712,957 5.57%
Deferred tax assets 483,179,344 23.45%
Other noncurrent assets 68,475,316 3.32%
2,060,167,956 13.80%
PHP 14,926,668,148 100.00%

LIABILITIES AND EQUITY

Current Liabilities
Healthcare plan liabilities PHP 8,408,312,509 67.68%

Accrued liabilities and other payables 3,544,080,461 28.53%

Lease liabilities - current portion 47,276,060 0.38%

Income tax payable 123,569,346 0.99%
Loans payable 0.00%
PHP 12,123,238,376 81.22%
Noncurrent Liabilities 0.00%
Loans payable 100,000,000 0.80%
Retirement liability 81,060,863 0.65%
Lease liabilities - noncurrent portion 67,523,226 0.54%
Other noncurrent liabilities 51,512,606 0.41%
300,096,695 2.01%
PHP 12,423,335,071 83.23%
Equity
Capital stock 598,029,500 23.89%
Capital paid in excess of par value 26,766,604 1.07%
Treasury stock (36,702,230) -1.47%
Subscribed capital 100,493,975 4.01%
Stock dividend distributable 0.00%
Share in remeasurement gain on retirement liability of 319,939 0.01%
Remeasurement loss on retirement plan (63,757,844) -2.55%
Retained earnings 1,878,183,133 75.03%
2,503,333,077 16.77%
PHP 14,926,668,148 100.00%

Not to be distributed without consent of all the group members

 3-YEAR PROJECTED INCOME STATEMENT

YEAR 1 % YEAR 2 % YEAR 3 %

PHP 26,279,117,920.00 99.20% ### 99.21% PHP 36,992,134,939.00 99.2%

212,987,192 0.80% 244,934,696 0.79% 281,674,900 0.8%
PHP 26,492,105,112 100.00% PHP 30,810,929,462 100.00% PHP 37,273,809,839 100.0%

20,645,939,019 77.93% 24,012,706,990 77.94% 28,946,063,636 77.66%

18,132,591,365 68.45% 21,090,536,389 68.45% 25,524,573,108 68.48%
1,606,718,086 6.06% 1,867,643,782 6.06% 2,145,261,873 5.76%

906,629,568 3.42% 1,054,526,819 3.42% 1,276,228,655 3.42%

1,708,142,665 6.45% 1,986,789,660 6.45% 2,404,488,771 6.45%
788,373,538 2.98% 916,979,843 2.98% 1,109,764,048 2.98%
PHP 23,142,455,222 87.36% PHP 26,916,476,493 87.36% PHP 32,460,316,455 87.09%

3,349,649,890 12.64% 3,894,452,970 14.70% 4,813,493,384 18.17%

1,701,948,727 6.42% 2,166,813,534 8.18% 2,871,725,289 10.84%

1,647,701,164 6.22% 1,727,639,436 6.52% 1,941,768,095 7.33%

411,925,552 1.55% 431,909,598 1.63% 485,441,501 1.83%

1,235,775,611 4.66% 1,295,729,838 4.89% 1,456,326,594 5.50%

YEAR 3 PROJECTED BALANCE SHEET

YEAR 3 %

PHP 4,364,804,922 19.39%

3,134,655,545 13.93%
14,473,031,818 64.30%
534,725,195 2.38%

PHP 22,507,217,480 91.68%

 139,276,675 6.82%
0 0.00%
0 0.00%
981,835,905 48.08%
142,405,366 6.97%
115,114,178 5.64%
587,289,415 28.76%
76,139,656 3.73%
2,042,061,195 8.32%
PHP 24,549,278,675 100.00%

PHP 14,804,252,402 67.89%

6,464,850,164 29.65%

75,587,135 0.35%
123,569,346 0.57%
0 0.00%
PHP 21,468,259,048 87.45%

100,000,000 0.46%
80,000,000 0.37%
104,951,363 0.48%
52,698,606 0.24%
337,649,969 1.38%
PHP 21,805,909,017 88.83%

598,029,500 21.80%
26,766,604 0.98%
(36,702,230) -1.34%
100,493,975 3.66%
0 0.00%
319,939 0.01%
(63,757,844) -2.32%
2,118,219,714 77.21%
2,743,369,658 11.17%
PHP 24,549,278,675 100.00%
(PHP 0)
BASIS / RATIONALE / ASSUMPTION

Based on the target headcount of 2M members by end of Year 3. See sheet IS-MF and claims
Gradual increase from pre-pandemic year with ending 17% of Year 3 vs 2019 (pre-pandemic)

Based on the target 69% Loss Ratio. See sheet IS-MF and claims
Target 6% target commission. Share of revenue for both Internal Sales team as well as Intermediary
Partners are projected to scale with growth of revenue assuming the increase in direct accounts
year-on-year, following the beef up of own sales team. Intermediary rates in terms of percentage are
expected to be constant.
5% of healthcare benefits - fixed rate. See sheet IS - Expenses
Assumed 6.45% of Membership fees, target fixed rate for the next 3 years. See sheet IS - Expenses
Assumed 2.98% of Membership fees, target fixed rate for the next 3 years. See sheet IS - Expenses

The increase on the Other Income is the investment of a new company together with a
conglomerate, and a new subsidiary of Maxicare which is MHSI, which was only operational late
last 2021

Target income of the company is to stabilize at around 5%. This is higher than pre-pandemic (vs 2019)

Growth in Sales and other financing and investing activities

retain
Based on the growth of the business. This is assumed at 50% of Healthcare benefits.
Refers to advanced payments on vaccines, maintenance renewals and other insurance and software
licenses. It was only decreased during the spike of pandemic. This is assumed based on the firgure
pre-pandemic where minimal changes only across the years.
retain

Cost on land, building, condominium and others, minimal change (same with 2020).
Projected same from the max amount of last 3 AFS. No downgrade of software licenses.
Projected same from the max amount of last 3 AFS. (minimal cost)
Projected same from the max amount of last 3 AFS. (minimal cost)
Projected same from the max amount of last 3 AFS. (minimal cost)

This is for the claims incurred of previous year, but will be processed by the current year.
Percentage was aligned with our Actuarial Valuation Report of distributaion share of earned vs
unearned claims. Such is submittted yearly to Insurance Commission, certified by an Accredited
Actuary
These are trade payables, accrued expenses, commission payables and etc. The cost were derived
from the moving average of each period, in accordance to the growth of business
No expected significant change for the next three years
No expected significant change for the next three years

No expected significant change for the next three years

No expected significant change for the next three years
No expected significant change for the next three years
No expected significant change for the next three years

retain
retain
retain
retain
retain
retain
retain

The liquity requirement of all HMO shall at all times maintain an Acid Test Ratio (ATR) of at least
1.0. The computed ATR of the Year 3 projection is 1.05 (Current Assets / Current Liabilities)
 LINK

IS-MF and Claims

IS-MF and Claims

IS - Expenses
IS - Expenses
IS - Expenses

mic (vs 2019)

Basis of Membership Fees in Income Statement

AS OF DEC 31 TARGET
2019 2020 2021 2022 2023 2024
Headcount 1,186,000 1,323,441 1,430,751 1,571,659 1,712,770 1,874,002
(inc/dec from previous year) 11.59% 8.11% 9.85% 8.98% 9.41%
Average Earned Membership Fees per Capita 14,467 13,981 13,737 16,721 17,891 19,143
Actual/Target Loss Ratio per Capita 78.96% 45.13% 61.21% 69.00% 69.00% 69.00%
Average Claims per capita 11,423 6,310 8,409 11,537 12,345 13,209
Inflation per YoY -45% 33% 1% 7% 7%

a. Membership fees from medical plans is computed as headcount X average earned membership fees per capita
b. The percentage increase on headcount from previous year was derived to hit the target of 2M at the end of Year 3. See below mix:
Corporate Accounts are targeted to grow by 15% every year.
Consumer Accounts and Products are expected grow by:
100% from 2021 to 2022
50% from 2022 to 2023
25% from 2023 to 2024
c. The target Loss Ratio (medical claims / membership fees) was the target of management and based on the projections done by Actuarial Division of Maxic
d. The 7% Inflation is supported by an internal study of medical trend. However, the 1% for the year 2022 was assumed to be 37% if to compared with 2021

Basis of Claims in Income Statement

1. The
2. Yearprojected
per Year rider
targetcosts
of Loss Ratio
for the next few years is directly proportional to the growth of business. These are costs for either or combination of the followin
separately or lumped together with the HMO premium. This includes the existing group life and ADD&D riders we offered to the accounts.
3. Inclusive of Teleconsult consults
Actuarial Division of Maxicare
% if to compared with 2021 pandemic period.

combination of the following that are included in the availed package of the accounts which may either be billed
e accounts.
Basis of Other Cost and Operating Expenses in Income Statement

a. Expenses projected to increase based on a fixed rate

b. Personnel Expenses
b1. No planned increase in headcount, minimal increase of 6% .
b2. To attain this, the company is currently in the process of exploring various system automations (e.g., additional modules from SAP Hana, small automation project
c. Rent Expense
c1. Expense for non clinic sites for provincial employees are expected to be maintained with an average annual escalation rate of 5%.
d. Expenses projected to be based on previous plans prior pandemic.
d1. Transportation
d2. Supplies and Printing Costs
d3. Meetings and Trainings
d4. Allowance for doubtful accounts are expected to be a certain percentage of revenue, aligned with the target collection
e. Expenses projected to remain basically the same plus inflation rate
e1. Advertising Expenses
e2. Telecommunications, Utilities, Janitorial and Security
e3. Professional and Supervision Fees
e4. Outsourcing Expense
e5. Repairs and Maintenance

Maxicare aims to keep overhead relatively flat through the succeeding years, following the various initiatives for cost efficiencies including enormous investments in th
Assumptions:
Expenses are projected based on the nature as follows:
○Expenses projected to increase based on a fixed rate
○Expenses projected to be based on previous plans prior pandemic
○Expenses projected to remain basically the same plus inflation rate
AP Hana, small automation projects of repetitive process and other Business Intelligence tools for analytics)

luding enormous investments in the various automation projects.