Hailey Tran
The Philippines has a mix of private and public hospitals that make up its healthcare system. While there is no clear data on the exact number of private hospitals in the Philippines, some well-known private hospitals include Cardinal Santos Medical Center, Manila Doctors Hospital, Westlake Medical Center, and ManilaMed. The private health sector in the Philippines faces challenges such as a nursing staff shortage and financial issues, with the Private Hospitals Association of the Philippines urging the state-run national health insurance group, PhilHealth, to settle its debt to health facilities.
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What You'll Learn
Private Hospitals Association of the Philippines
The Private Hospitals Association of the Philippines represents a sector that plays a significant role in providing essential health services in the country. Out of a total of 1195 hospitals recorded by the Philippine Statistics Authority in 2022, 772 were private hospitals. Some well-known private hospitals in the Philippines include Cardinal Santos Medical Center, Manila Doctors Hospital, Westlake Medical Center, and ManilaMed.
The private hospital sector in the Philippines faces several challenges related to financing, organisation, and regulation. In 2023, the Private Hospitals Association urged the state-run national health insurance group, PhilHealth, to settle its PHP 27 billion (around USD 500 million) debt to health facilities by the end of the year. This highlighted the need for efficient management of disbursement and payment within the national health insurance system. To support the operational efficiency of private hospitals, the government could consider enacting tax policies such as tax cuts for delayed disbursements and incentives for serving the lower-income population.
Another challenge faced by the private hospital sector in the Philippines is the nursing staff shortage. As of 2023, there was a reported 50% nursing staff shortage, with nurses opting for better-paying opportunities. This has led to calls for the introduction of policies and programs to improve the wages of healthcare workers and enhance the government's capacity to augment the private hospital workforce, especially during health crises like the COVID-19 pandemic.
The Private Hospitals Association of the Philippines aims to address these challenges and advocate for strategic policies to strengthen the private hospital sector. By doing so, they can enhance the overall responsiveness and efficiency of the Philippine healthcare system, ensuring that the population has access to quality healthcare services.
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PhilHealth's debt to private hospitals
The Philippine Health Insurance Corporation (PhilHealth) has faced challenges in settling its debts to private hospitals in the country. During the first year of the coronavirus pandemic, PhilHealth accumulated billions of pesos in unpaid health claims by its members to hundreds of private hospitals. This situation led to significant financial strain on the private health sector, with hospitals urging PhilHealth to settle its debts promptly.
As of 2023, PhilHealth's debt to private hospitals was estimated to be around PHP 27 billion (approximately USD 500 million). This outstanding amount covers the period from March to December 2020, and it is believed that the total debt, including amounts owed to public hospitals and other private health facilities, could be even higher. The Private Hospitals Association of the Philippines has advocated for the settlement of this debt by the end of the year to alleviate the financial burden on health facilities.
The impact of PhilHealth's unpaid claims has been significant, with reports of hospitals turning away patients, including indigent ones, due to the outstanding debts. This has resulted in a challenging situation where hospitals struggle to pay their doctors and employees, affecting the overall responsiveness of the Philippine healthcare system. To address this issue, PhilHealth has engaged in ongoing dialogues with hospitals to find a resolution.
In September 2023, the state health insurer promised to settle a substantial portion, if not all, of the unpaid claims amounting to P27 billion. This commitment was made during the House deliberations on the proposed 2024 Department of Health (DOH) budget. While the specific details of the repayment plan are not publicly available, PhilHealth's efforts to address the issue are a positive step toward supporting the financial stability of private hospitals in the Philippines.
It is important to note that the payment to private hospitals is subject to a 2% expanded withholding tax. This adds a layer of complexity to the repayment process and impacts the overall amount received by the hospitals. To enhance the operational efficiency of private hospitals and encourage their service to lower-income populations, the government could consider tax policies such as tax cuts for delayed disbursements and incentives.
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Nursing staff shortage
The Philippines is facing a critical nursing staff shortage, with a 50% deficit in private hospitals as of 2023. This shortage is attributed to two main factors: the emigration of Filipino nurses to other countries and nurses leaving the profession for better-paying opportunities. The COVID-19 pandemic exacerbated the situation, increasing demand for nurses while also contributing to burnout and turnover. The Philippine government has attempted to address the shortage by recruiting unlicensed nursing graduates as "critical care associates," but this has sparked concerns about the quality of care and the increased workload for licensed nurses.
To retain nurses in the local health sector, the government must address the issue of low wages. An entry-level nurse in a private hospital in the Philippines earns approximately $500 per month, while senior positions can range from $800 to $1,000 monthly. In contrast, nurses in the US earn an average of $40-$50 per hour, a significantly higher daily wage. This significant wage disparity has led many Filipino nurses to seek opportunities abroad, with over 150,000 migrating to the US since the 1960s.
To mitigate the nursing shortage, the Commission on Higher Education (CHED) removed a 10-year moratorium on opening new nursing schools and offering BSN programs. Additionally, President Ferdinand Marcos Jr. has directed the CHED to develop further interventions to address the scarcity of nurses. Makati City Rep. Luis Campos Jr. has proposed creating a P1-billion special education fund to enable more state universities and colleges (SUCs) to establish nursing schools and produce more nursing graduates.
The nursing staff shortage in the Philippines is expected to worsen, with a projected shortfall of 249,843 nurses by 2030 unless greater investment is made to retain nurses in the country. The government and hospitals are collaborating to develop upskilling programs, but more concrete policies and programs are needed to improve wages and enhance the capacity of the private hospital workforce.
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Private health sector's contribution to the Philippine health system
The private health sector in the Philippines makes a substantial yet difficult-to-quantify contribution to the country's overall healthcare system. Private hospitals in the Philippines, such as Cardinal Santos Medical Center, Manila Doctors Hospital, and Westlake Medical Center, are known for their advanced facilities and expertise in various medical specialties. However, the private health sector faces challenges, including a nursing staff shortage and financial strain.
The Philippine Health Insurance Corporation, or PhilHealth, is the national health insurance provider, serving both private and government sectors. PhilHealth aims to streamline services and enhance efficiency in payment collection from employers. For instance, it has introduced online payment facilities and mandated that all employers utilize these for faster acknowledgment and immediate posting of remittances.
The Social Security System (SSS) is another crucial government agency that provides social insurance and protection to Filipino workers, including those in the private sector. In cases of dual employment, each employer is responsible for making contributions based on the employee's earnings within their company.
To support the operational efficiency of private hospitals, the government could consider enacting tax policies favorable to private hospitals, such as tax cuts for delayed disbursements and incentives for serving lower-income populations. Additionally, policies to improve the wages of healthcare workers and enhance the capacity to augment the private hospital workforce during health crises are imperative.
Overall, the private health sector in the Philippines plays a significant role in delivering advanced healthcare services to the population. However, challenges related to staffing, finances, and efficient management of disbursements must be addressed through strategic policies and improved data collection systems.
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Top private hospitals in the Philippines
The Medical City Clinic and St Luke’s Hospital Philippines Medical Center are considered the two best private hospitals in the Philippines for expatriates. Both hospitals are located in the capital city of Manila and offer quality care to both locals and foreigners or international patients. The Medical City Clinic has been operating for 25 years across various locations in the capital and offers a wide range of diagnostic and therapeutic procedures with the aim to treat and prevent illnesses. St. Luke’s is accredited by the Joint Commission International (JCI) and is dedicated to providing the best care for its patients with numerous specialties and a comprehensive approach to diagnosis and treatment.
Other top private hospitals in the Philippines include the Cardinal Santos Medical Center (CSMC), a trusted private hospital well-known for its specialties in Cardiology, Oncology, Neurosurgery, Gastroenterology, and Rehabilitation Medicine. Manila Doctors Hospital is another top private hospital that has provided world-class healthcare in the Philippines for over 60 years, offering a wide range of medical and diagnostic services, a one-stop wellness hub, and advanced cancer treatment. Westlake Medical Center, part of the larger network of hospitals in Mount Grace Hospitals, Inc. (MGHI), provides easy access to high-grade, industry-standard healthcare, and ManilaMed, another hospital under the MGHI network, offers state-of-the-art facilities that ensure every patient’s health and comfort.
It is important to note that in most hospitals in the Philippines, patients are required to pay an upfront cash payment before receiving treatment. If you have health insurance, you can file a claim later to be reimbursed for your payment. The top health insurance plans offered for expatriates in the Philippines are provided by Cigna and Allianz, and GeoBlue is recommended for US citizens living as expatriates in the Philippines.
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