UST Hospital lays off staff over financial losses to pandemic
MANILA, Philippines — The UST Hospital in Sampaloc, Manila has had to lay staff off due to financial losses from cancelled procedures and pending Philippine Health Insurance Corp. reimbursements.
"[P]ainful decisions were needed to be made. While the news around significantly highlights the health and medical impact of the pandemic, the huge economic and financial impact brought about by this crisis to all business establishments, most especially to healthcare institutions, is often overlooked," Dr. Marcellus Francis Ramirez, hospital medical director, said in a report by The Varsitarian.
In a statement also carried by The Varsitarian, UST Hospital said it has implemented the non-renewal of fixed-term contracts and the retrenchment of some members of its staff.
"Employees affected by the retrenchment measures will receive 150% separation pay based on our CBA, which is 50% higher than what the Labor Code provides. It must also be noted that retrenchment is a recognized valid and legal management measure and it remains as such even during the COVID-19 crisis. Thank you for allowing us to clarify about the matter," the hospital also said.
The Varsitarian reported that the Ugnayang Nagkakaisang Manggagawa–University of Santo Tomas (UNM–UST) protested the layoffs, that it said were "wrongful terminations" in the guise of business losses.
In its statement, the hospital said that it has sustained "significant losses" during the COVID-19 pandemic because fewer patients have been coming in due to the enhanced community quarantine.
"Moreover, most of the patients admitted were COVID patients. Ordinary and elective patients stayed away from most hospitals even up to now due to fear of possible COVID-19 infection," it also said.
It added that contingency measures to address the pandemic, including cancelling elective procedures and admissions to focus on the care of COVID-19 patients "is taking a very serious toll on the hospital’s sustainability."
"While PhilHealth has instituted healthcare coverage of admitted COVID patients, reimbursement is delayed by an average of 5-6 months. Currently the receivable of USTH from PhilHealth stands at more than P180 million and counting," the hospital also said.
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