Palace challenges private hospitals to open books

MANILA, Philippines - Malacañang yesterday challenged private hospitals in the country to open their financial books to the public to back up their claims on why they need to raise their fees in order to recoup their losses from the implementation of the Cheaper Medicine Law.

Deputy presidential spokesperson on economic affairs Gary Olivar said the concerned private hospitals should not wait for the government to impose sanctions on them and prove claims that they are incurring losses.

Olivar said the government, through the Department of Health (DOH) and the Philippine Health Insurance Corporation (PhilHealth), has several options to use against hospitals that will raise fees without justification.

He said the DOH, which issues the necessary licenses or permits for hospitals, can suspend or revoke those. PhilHealth, on the other hand, can freeze the claims of such hospitals. 

Deputy presidential spokesperson Lorelei Fajardo said that Health Secretary Francisco Duque III has complained that private hospital owners have refused to dialogue with him to discuss the issue of hospital fees.

Some private hospitals have reportedly raised their fees despite repeated warnings from the government.

They claimed that the implementation of the law, which effectively brought down the prices of 21 types of medicine, resulted in huge losses because they purchased the drugs at higher prices.

Olivar said that he could not understand the basis of the hospitals for raising their fees since the impact of the drug price cut would just be a one-time hit on their existing inventory.

He also noted that the sale of medicine is just one of the sources of revenues of the hospitals.

“So I really think that there’s something going on and it was only right for Secretary Duque to look at their financials,” Olivar said.

“The last thing we want to see is people taking advantage of policy changes for the good of the poor users of health care in order to improve their profits. They’re making it more expensive to get sick and be treated,” he added. – With Sheila Crisostomo and Mayen Jaymalin