There is a saying that before the New Year comes in, you should be debt-free to start the year right. This is certainly what many hospitals in the country want. DOH Sec. Teodoro Herbosa asked PhilHealth to settle their debts to private hospitals such as St. Luke's Medical Center in Quezon City, where PhilHealth allegedly owes ?800 million, and not just leave them in banks. That's a lot of money. Especially when private hospitals will be disadvantaged next year because they will no longer receive government subsidies.
According to President Bongbong Marcos Jr., PhilHealth has a reserve fund of ?500 billion. Former Senate president Franklin Drilon states the reserve is ?800 billion. Whatever the true amount is, that is a ton of money. This is why PhilHealth officials have allayed the fears of those concerned about its financial health, pun intended. They have the necessary funds for 2025 when government subsidy ceases. According to Marcos, PhilHealth spends about ?100 billion a year on its member’s needs. They also stated there will be no increase in the contribution of its members. They will shoulder the adjustments.
PhilHealth also clarified that the ?138 million they have allocated is not for this year’s Christmas party but for the agency's 30th anniversary in 2025. They are adhering to the president’s order to have modest Christmas celebrations. I hope so. Government agencies should not be having lavish parties today, especially when so many have been affected by natural calamities.
If PhilHealth has a lot of reserve funds, why do they owe private hospitals like St. Luke’s a large amount of money? Why not settle promptly? Private hospitals also need a revolving capital to ensure continued service to their patients. Maintenance of equipment, wages of staff, nurses, technicians, and housekeeping. Laundry of used hospital linen such as bed sheets, pillowcases, and blankets entails a much different process as opposed to regular laundry. The hospital pays for utilities like electricity and water.
Private hospitals have long lamented the delayed settlements of PhilHealth. Some doctors have also aired complaints. According to Sec. Herbosa, the PhilHealth system is broken and should be fixed. PhilHealth reserve funds should also not be transferred to other government agencies. A large part of PhilHealth's fund comes from the contributions of its members so they should not be transferred to any other agency, even if they have a surplus of funds.