Manila: The Department of Health will prioritize operational efficiency, primary care, and financial protection under the proposed 2027 national budget, Health Secretary Edwin Mercado said Wednesday. In a radio interview, Mercado noted the DOH is among the three departments prioritized in the Department of Budget and Management's National Expenditure Program.
According to Philippines News Agency, Mercado explained that the proposed budget accommodates essential operating expenses and personnel salaries, while also expanding programs through the Philippine Health Insurance Corp. (PhilHealth). Rather than simply reacting to budget reductions, the DOH aims to optimize the use of available resources.
Mercado elaborated that the Department of Budget and Management encourages departments to carefully consider what is most efficient and effective. He emphasized the importance of allocating funds to provide the greatest relief to citizens.
The department plans to strengthen primary care and access to outpatient medicines through initiatives such as Yaman ng Kalusugan (YAKAP) and GAMOT. The GAMOT program, which currently includes about 3,000 medicine clinics, aims to expand access by establishing at least one or two participating pharmacies in each town. Eligible beneficiaries may also receive a P20,000 e-wallet allocation for medicines.
Additionally, the DOH will continue expanding zero-balance billing to reduce hospitalization costs for eligible patients. Mercado highlighted that early intervention could prevent an estimated 33% to 35% of hospital admissions.
Other priorities include expanding the Health Facility Enhancement Program, especially in remote and underserved communities, and the Medical Assistance to Indigent and Financially Incapacitated Patients program, which provides additional support after PhilHealth coverage.
Meanwhile, PhilHealth is shifting toward strategic purchasing of health services to address funding gaps and improve efficiency. Mercado mentioned the insurer is exploring global and prospective payment systems that link provider payments more closely to patient outcomes, efficiency, and quality of care instead of traditional fee-for-service arrangements.
Mercado stressed the importance of aligning providers to ensure they become efficient, provide good service, and improve the quality of patient care.
