Malaca±ang: Local government units (LGUs) must ensure they have sufficient funds before issuing hospital guarantee letters, Malaca±ang announced on Tuesday. In a press briefing, Palace Press Officer Claire Castro emphasized that such guarantees should not be charged to the Department of Health (DOH), particularly for hospital services already covered under the government's Zero Balance Billing (ZBB) program.

According to Philippines News Agency, Castro made the statement in response to remarks by Baguio City Mayor Benjamin Magalong, who criticized Health Secretary Ted Herbosa for stating that DOH-run hospitals do not rely on guarantee letters, especially for basic accommodations. Castro defended Herbosa, noting that DOH hospitals, including the Baguio General Hospital (BGH), do not require guarantee letters for basic services under the ZBB policy.

Castro explained that if the mayor of Baguio City issues guarantee letters, they must ensure they have funds. She clarified that the guarantee letters issued by the Baguio City government were funded by the city's own resources and not by the DOH, based on the arrangement with the BGH. Castro added that the issuance of such letters implies financial responsibility on the part of the issuing entity, which serves as the guarantor.

She further clarified Herbosa's position, stating that when discussing guarantee letters, it implies that there is a guarantor. If a borrower fails to pay, the guarantor will be held liable. Castro stressed that whoever issued the guarantee letter as the guarantor is the one who should pay, and the funding should not come from the DOH.

Castro also highlighted that the policy against the use of guarantee letters by politicians is part of the proposed 'anti-epal' provisions under the 2026 General Appropriations Act (GAA), initiated by President Ferdinand R. Marcos Jr. This policy has yet to be fully implemented. Castro advised that Mayor Magalong should be aware of the timeline for implementing the guarantee letter policy, which is set for 2026.

Furthermore, Castro stated that patients seeking basic accommodation in DOH hospitals, such as BGH, do not need guarantee letters. LGUs are free to make arrangements with private hospitals, provided they have sufficient funding, and any agreements with private hospitals will not be obstructed.