7 Iloilo hospitals cut ties with PhilHealth

MANILA, Philippines — Seven hospitals in Iloilo City will not renew their accreditation with the Philippine Health Insurance Corp. (PhilHealth) starting Jan. 1 next year over unpaid reimbursement claims.

In an advisory issued on Friday,  the hospitals said they decided to disengage from PhilHealth, noting that the agency could not comply with its legal obligations under Republic Act 7875 or the National Health Insurance Act.

The heads of the Iloilo Directors’ Hospital,  Iloilo Mission Hospital, Medicus Medical Center, Metro Iloilo Hospital and Medical Center Inc., St. Paul’s Hospital of Iloilo, The Medical City-Iloilo and Qualimed Hospital-Iloilo said they reached a consensus not to renew their accreditation with PhilHealth during a meeting on Dec. 9.

The hospitals noted that a reconciliation process initiated by PhilHealth last Oct. 8 resulted in the payment only of 15 to 20 percent of the account receivables.

In a separate advisory, the seven hospitals said their unpaid claims amounted to a “staggering” P545,094,532.45 as of Aug. 31.

The hospitals said they would continue to serve members of the state insurer, but would no longer deduct PhilHealth benefits or process their claims.

This means that PhilHealth members themselves should apply for reimbursement directly with the state insurer or pay their medical bills out of their own pockets.

“We are greatly saddened by this action we have to take. However, we are left with no other choice but to ensure the survival of our hospitals so that we can uphold our commitment to offer necessary and quality healthcare to our patients,” the advisory read.

The hospitals said they have been exhausting all efforts to provide essential health care services during the COVID-19 pandemic “despite the extreme challenges we face and the constant sacrifices being made by our healthcare workers and employees.”

“Unfortunately, our hospitals cannot continue to operate with depleted financial resources caused by non-payment of our claims by PhilHealth,” the advisory said.

More hospitals eye disengagement

Meanwhile, Private Hospitals Association of the Philippines Inc. (PHAPi) president Jose Rene de Grano said more hospitals in General Santos, Quezon province, Isabela and Metro Manila are expected to disengage from PhilHealth.

De Grano lamented that PHAPi has been negotiating with PhilHealth in the past three months but there was no clear and concrete solutions offered to them.

“These private hospitals have decided that instead of naturally closing eventually due to diminished funds, they are choosing the other option of non-renewal to preserve their funds and at the same time continuously give services to our beneficiaries,” De Grano said.