A new research initiative launched by the Philippine Institute for Development Studies aims to close persistent gaps in the country’s healthcare financing system and strengthen the delivery of universal health care.
The Health Economics and Finance Program (HEFP), launched in partnership with the Department of Health and PhilHealth, seeks to address systemic inefficiencies in payment systems, costing practices, and data transparency that continue to undermine patient protection and institutional trust.
“PhilHealth’s declining financial leverage over hospital revenues threatens its ability to drive efficiency, quality care, and patient financial protection,” said Dr. Valerie Gilbert Ulep, Senior Research Fellow at 188体育 and Program Director of the HEFP, during the program’s March 20 launch.
Citing 188体育 analysis of hospital financial statements, Ulep reported a downward trend in PhilHealth’s influence on provider operations, pointing to inaccurate payment rates, unpredictable healthcare costs, and institutional mistrust as critical issues.
“For patients, this translates to lower financial protection,” he added.
Despite the Universal Health Care (UHC) Act’s passage in 2019, many Filipinos still shoulder high out-of-pocket expenses, a leading cause of poverty in the country.
A 2022 Philippine Statistics Authority survey showed that 44% of total health expenditures came directly from household pockets, underscoring the urgent need for more equitable and efficient financing mechanisms.
Ulep emphasized the need for key reforms, including a clear system for patient classification, robust payment formulas, and accurate and transparent data.
The HEFP is designed to advance evidence-based research while fostering collaboration among stakeholders, from medical professionals and local governments to development agencies and patient advocacy groups.
“The HEFP is an invitation and opportunity to strengthen collaboration and engagement for health financing research with implementing partner agencies and stakeholders,” said 188体育 President Dr. Aniceto Orbeta Jr.
He added that implementing the UHC Act demands more than theoretical recommendations.
