The Department of Health on Saturday clarified that the projected retained income for 2021 of its 98 hospitals and other health facilities is P16.9 billion, and instead P448 billion as earlier reported to the Department of Budget and Management (DBM).
Meanwhile the projected expenditure of government hospitals amounts to P16.7 billion.
In a statement, the DOH said it initially explained at a Senate budget briefing on Wednesday that the “unusually high” amount of P448 billion stemmed from an encoding error in the projected receipts and expenditures of Eastern Visayas Regional Medical Center — the absolute amount was encoded without adjusting to thousandths, resulting in a bloated amount.
According to the Health department, it has already submitted the corrected figures to the DBM.
At a Senate hearing, Senator Panfilo Lacson slammed the DOH’s P448-billion retained income for 2021 hospital fees, which could have been used to help cover the expenses of poor patients, especially those who lost their livelihood due to the COVID-19 pandemic.
But, the DOH noted that the medical expenses of indigent patients are covered by multiple sources of funding such as PhilHealth and other medical assistance provided by the government.
Apart from PhilHealth reimbursements, the DOH said hospitals and other health facilities also generate income from hospital fees, dispense of drugs and medicines, and other sources of revenue generated through its operations.
Section 2 of the Special Provision of the DOH under the General Appropriations Act (GAA) of 2021 provides guidance on the use of these funds.
All health facilities must use this income to augment the capital outlay, and maintenance and other operating expenses (MOOE) requirements to deliver better health services to patients, it said.
These funds, however, cannot be used for the payment of salaries, allowances, and other benefits, it added.
“Ang nakuhang dagdag na pondo ng DOH hospitals at iba pang implementing units ay ginagamit upang makapagbigay tayo ng mas mataas na antas ng serbisyong medikal sa ating mga kababayan,” said Administration and Financial Management Head Health Undersecretary Leopoldo Vega.
(The additional funds generated by DOH hospitals and other implementing units are used to provide higher quality of medical services for our citizens.)
“Sa pamamagitan ng pondong ito ay nakapagpapatayo ng mga pasilidad at nakabibili ng mga mahahalagang gamit ang ating mga implementing units. Kasalungat ng mga alegasyon na pinagkakitaan ng mga ospital na ito ang ating mga kababayan, karamihan ng gastusing medikal nila ay sinagot ng PhilHealth,” Vega said.
(With these funds, we can build facilities and procure necessary equipment for our implementing units. This is in contrast to the allegation that government hospitals are earning from our fellow countrymen because their medical expenses are covered by PhilHealth.) —LBG, GMA News
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