MANILA, Philippines - The Philippine Health Insurance Corp. (PhilHealth) yesterday backed the challenge of the Department of Health (DOH) to private hospitals to open their financial books to support claims that they are losing money because of the implementation of the Maximum Drug Retail Price (MDRP) system.
MDRP or Executive Order 821 sets the maximum selling price for five types of common but expensive medicine. These are the anti-hypertensive drug amlodipine, the anti-cholesterol drug atorvastatin, the antibiotic/antibacterial drug azithromycin, and the anti-neoplastics/anti-cancer drugs cytarabine and doxorubicin.
The MDRP, which became effective on Aug. 15, was slapped on drugs which prices have not been lowered by 50 percent in compliance with the Cheaper Medicine Act. Of the 21 most commonly used drugs recommended for price cut under the law, the Pharmaceutical Healthcare Association of the Philippines (PHAP) voluntarily slashed the prices of only 16 drugs.
PhilHealth president Dr. Rey Aquino said the decision of private hospitals to recover their so-called losses by increasing administrative fees was an immoral act.
“Such an act does not put into consideration its overall impact on people, including PhilHealth members who seek medical treatment in accredited facilities,” he said.
Aquino pointed out that by increasing administrative fees, private hospitals are risking the health of patients who have been looking forward to the implementation of the law.
He said the MDRP system covers only a limited number of commonly prescribed medications. Therefore, price cuts will not adversely affect the overall financial health of private hospitals.
He also said some hospitals have gradually increased their fees on other hospital items to catch up with the 35-percent increase in maximum benefits implemented by PhilHealth in April.
He then appealed to accredited private hospitals to refrain from hiking fees to enable PhilHealth members to experience the impact of the increase in the benefit ceiling.
“It is high time that our members are able to fully appreciate the support that their PhilHealth coverage offers, whether they are admitted in primary, secondary or tertiary category hospitals,” Aquino said.
There are about 1,558 PhilHealth accredited hospitals nationwide.
DOH Undersecretary Alex Padilla, who accompanied President Arroyo to Iloilo yesterday, said he met with the representatives of the Private Hospitals Association of the Philippines last Wednesday.
He said the private hospitals bargained that they would no longer raise their fees if pharmaceutical companies give them rebates.
In a related development, the DOH yesterday announced that it is allocating P20 million to buy anti-cancer generic drugs for children with leukemia.
Health Secretary Francisco Duque III said the health department has signed an agreement with non-government cancer support group Cancer Warriors Foundation to purchase the medications.
“These medicines that would have benefited only a few patients for the same amount due to the high costs of treatment can now help hundreds of leukemic patients,” Duque said.
He said the medicines would be purchased through PITC Pharma, Inc. – a subsidiary of state-run Philippine International Trading Corp. and is the supplier of Botika ng Bayan (BNB) Botika ng Barangay (BNB), and BNB Express drugstore chains – are two to five times cheaper than innovator drugs, or branded medicine. – With Marvin Sy