Hospitals downsizing to survive pandemic and P6 billion still owed by PhilHealth — PHAPi

MANILA, Philippines — Hospitals are reducing work to cut expenses and keep operating during the pandemic because of P6 billion still owed them by the Philippine Health Insurance Corp., a hospitals' group said Wednesday.

Dr. Jose de Grano, president of the Private Hospitals Association of the Philippines the money owed is for reimbursements from last December.

"Many of our members are already complaining," he said in a briefing, partly in Filipino. "There was supposed to be a promise that they (PhilHealth) would pay...a lot of hospitals had to downsize."

Other hospitals in PHAPi also had to implement staggered hours and work from home arrangements "just so they could survive," de Grano added. At a time when coronavirus infections in the country are on the rise, he said that some have had to reduce their bed capacities.

The dispute between the group and the state health insurer can be traced back to 2019, when the 746-member PHAPi threatened to cut ties with PhilHealth over unpaid claims.

In May 2020, then PHAPi leader Rustico Jimenez said over 300 small private hospitals were on the brink of closing down due to PhilHealth's failure to release insurance claims, an allegation that the agency denied.

Unpaid claims are not the only controversy that PhilHealth faced in the pandemic year, with allegations of graft and corruption leading to investigations and a leadership shakeup.

De Grano said the amount yet to be reimbursed is still growing, with hospital admissions continuing amid the health crisis.

"That's what members have been complaining to us and asking us what we are doing," he said. "Actually, we are not stopping from reminding PhilHealth of their debt. They said they have the money, but none is reaching us."

The group also appealed to government to help ensure that PhilHealth will pay  the hospitals. Asked if they will seek lawmakers' help, de Grano said the option is on the table.

Over ONE News' The Chiefs on Tuesday, he said there is supposedly a deadline of 60 days for the reimbursements, but "sometimes it's nine months before they can pay."  Payments also come in amounts he described as "drops" in a bucket of debt.

"A lot hospitals are only trying to survive or only surviving because they have downsized or minimized their expenses," de Grano said. "We're not like government hospitals that can ask Congress to fund them."