Philippine health spending dips to P1.2 trillion in 2022

MANILA, Philippines — Healthcare spending in the Philippines dipped by 1.4 percent last year amid a decline in COVID-19 cases and high inflation.

Data released by the Philippine Statistics Authority (PSA) yesterday showed the country’s total health expenditure fell to P1.20 trillion last year from P1.22 trillion in 2021.

The PSA said every Filipino spent an average of P10,059.49 for healthcare last year, 2.7 percent lower than the P10,341.73 in 2021.

Total health spending in the country accounted for 5.5 percent of the gross domestic product at current prices last year, also down from 6.3 percent in 2021.

Rizal Commercial Banking Corp. chief economist Michael Ricafort said in an email the slight decline in healthcare spending last year was partly due to the reduced number of new COVID cases as vaccination and booster doses increased.

“Furthermore, higher prices or inflation reduced spending power by individuals or households, businesses, and other institutions including the government, including spending for healthcare-related expenditures,” he said.

Inflation averaged 5.8 percent last year, higher than the 3.9 percent average in 2021.

Bulk or 93.4 percent of the total health spending was accounted for by current health expenditure which reached P1.12 trillion last year, lower than the P1.14 trillion in 2021.

Meanwhile, health capital formation expenditure went up slightly to P79 billion last year from P78.83 billion in 2021.

Government schemes and compulsory contributory health care financing schemes had the biggest contribution to the total current health expenditure last year at 44.8 percent share or P502.95 billion, down 9.4 percent from P554.95 billion in 2021.

This was followed by household out-of-pocket payment with a 44.7 percent share or P501.79 billion, five percent higher than the P478.04 billion in 2021.

Voluntary health care payment schemes had a 10.5 percent share or P117.62 billion, 10.3 percent higher than the P106.7 billion in 2021.

“Going forward, health expenditures, especially those not related to COVID, would pick up in view of the further reopening of the economy towards greater normalcy as this would be positively correlated with the further increase in incomes, jobs or employment, and overall expansion of the economy,” Ricafort said.