LGU Planning & Health Financing

Local investment plan for health (LIPH)

The Province-wide Investment Planning for Health (PIPH) was introduced in 2006 to strengthen local health planning with significant consideration for building capacities of devolved health managers in the local government units.  PIPH was first implemented in 16 pilot convergence provinces in 2006. The Department of Health (DOH), through the BLHSD, and development partners provided targeted support and intentioned assistance to the pilot provinces to achieve health sector goals of better health outcomes, financial risk protection and responsive health system.  The implementation of PIPH was rolled out to another set of 15 provinces (F15) in 2008, and to the rest of the 44 provinces (F44) and highly urbanized cities and independent component cities in 2009.

The P/CIPH has since been institutionalized and renamed as Local Investment Plan for Health (LIPH), a generic term to cover any level of LGU developing its investment plan for health. The time frame of the plan has also been changed to three years to coincide with the term of the Local Chief Executives (LCEs).

With the passage of Republic Act 11223 or the Universal Health Care (UHC) Act and its Implementing Rules and Regulations in 2019, the significance of the LIPH is highlighted. RA 11223 calls the National Government to make available commensurate financial and non-financial grants, including capital outlay, human resources for health and health commodities in accordance with the approved LIPHs. The LIPH serves as a guide for DOH and key stakeholders in their provision of technical assistance to LGUs.


Program Profile

What is Local Investment Planning for Health (LIPH)?
  • Medium term public investment planning for health is to be undertaken by Local Government Units in partnership with DOH, NGOs, CSOs, development partners and other stakeholders to attain local and national health sector refor goals through a bottom-up planning procedure that allows lower level units such as barangays, municipalities and component cities to have their plans incorporated in the province-wide health plan; or in the case of HUCs and ICCs, to have their plans consolidated in the city-wide health plan.
  • The resulting Local Investment PLAN for Health specifies the strategic direction of the concerned LGU for the next three years, in terms of improving health service delivery, strengthening the health systems operations and addressing social determinants of health, and actions and commitments of different local stakeholders. The LIPH translates national health goals (AmBisyon Natin 2040, Sustainable Development Goals, Philippine Development Plan and National Objectives for Health) into specific concrete actions at the local level.
  • The LIPH (plan) serves as the costed strategic plan of the Province/City-wide Health System (P/CWHS) for the implementation of the UHC, covering the needs of all its municipalities (for provinces) and barangays (for cities).
What are the Goals of LIPH?
  • To institutionalize local health planning as a sectoral endeavor involving not just the LGUs and DOH, but all key stakeholders and development partners, towards a whole-of-system, whole-of-government, whole-of-society approach in the development, implementation and monitoring and evaluation of the LIPH
  • To guide the implementation of the UHC in the P/CWHS, unifying efforts and resources towards achieving health goals and reforms
What are the Objectives of LIPH?
  • To develop policies, guidelines, procedures and tools to support and facilitate the development of LIPH and Annual Operational Plans (AOPs)
  • To build capacities of key DOH and LGU players on local investment planning, adopting bottom-up approach and consideration of health needs of Geographically Isolated and Disadvantaged Areas (GIDA), Indigenous Cultural Communities/ Indigenous Peoples (ICC/IP), indigents, senior citizens, Persons with Disabilities, women and children and other vulnerable populations
  • To improve matching of national resources and technical assistance with the needs identified in the LIPH
What are the strategies used in LIPH?
  • Development of policies and guidelines on the  crafting of LIPHs and Annual Operational Plans
  • Capacitation of key DOH and LGU players on LIPH/AOP development
  • Provision of technical and financial assistance
  • Harmonization and alignment of national and local health planning processes, timelines and plans
  • Monitoring of plan implementation
What is the Annual Operational Plan (AOP)?
  • The AOP is the yearly translation of the LIPH; it details the programs, plans and activities (PPAs) and systems interventions that are to be implemented in the Province/City-wide Health Systems (P/CWHS) in a particular year.
  • The AOP updates the LIPH and shall be aligned with the LGU’s Annual Investment Program (AIP).
What is the legal basis to implement the AOP?
  • UHC Act IRR prescribes that the DOH shall contract “province-wide and city-wide health systems..., through a legal instrument to ensure shared responsibilities and accountabilities among members of the health system for the delivery of population-based services including those that impact on the social determinants of health.
  • The Terms of Partnership (TOP)  is the legal instrument for contracting P/CWHS; it formalizes the agreement between the DOH Center for Health Development and the LGU on the implementation of the AOP for a particular year.
  • The TOP contains the outputs and performance milestones to be attained, roles and responsibilities of contracting parties, the amount of resources, whether financial or non-financial, that LGUs, DOH, development partners, and other institutions shall provide, and conditions and requirements pertaining to the release/provision of funds/resources for the implementation of the AOP.
  • The financial grants that will be provided by DOH to the P/CWHS, as stated in the TOP, will be transferred through the Special Health Fund.  PhilHealth payments will also accrue to the Special Health Fund, through a separate contractual agreement between PhilHealth and the P/CWHS.
  • Non-financial grants (e.g. HFEP, HRH, commodities, cap bldg.) are provided through the guidelines of relevant DOH offices.
How is the implementation of the LIPH monitored?
  • The implementation of the LIPH is monitored by tracking the conduct and physical accomplishment of PPAs, as contained in the AOP, as well as fund commitments and assistance from the key stakeholders (LGU, DOH, other partners).
  • Monitoring may include the conduct of systems or program-based Program Implementation Review (PIR), LGU Health Scorecard review, regular staff meetings, submission of monitoring reports, and review of implementation evidences, among others.
Related Policies/Issuances
  • Administrative Order # 2020-0022 dated 21 May 2020, “Guidelines on the Development of Local Investments Plan for Health”
  • Administrative Order # 2020-0018 dated 14 May 2020, “Guidelines on Contracting Province-Wide and City-Wide Health Systems”
  • Joint Memorandum Circular 2021-0001 dated 13 January 2021, “Guidelines on the Allocation, Utilization, Monitoring of, and Accountability for the Special Health Fund”
  • Department Memorandum # 2021-0434 dated 11 October 2021, “Directions for the Development of 2023-2025 Local Investment Plans for Health and 2023 Annual Operational Plans”
  • Department Memorandum # 2021-0491 dated 17 November 2021, “Local Investment Plan for Health Information System”