Press Release | October 16, 2021

The Department of Health (DOH) on Saturday clarified that the projected retained income for 2021 of its 98 implementing units is P16.9 billion, instead of P448 billion previously reported to the Department of Budget and Management (DBM), while the projected expenditure is at P16.7 billion.

The DOH initially explained in the Wednesday Senate budget briefing 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. The DOH has also submitted the corrected figures to the DBM.

The DOH added 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, DOH 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. These funds, however, cannot be used for the payment of salaries, allowances, and other benefits.

“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. 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,” said Administration and Financial Management Head Undersecretary of Health Leopoldo Vega.