Manila: The Department of Health (DOH) has earmarked PHP1 billion from its budget to begin the implementation of zero balance billing in selected large hospitals managed by local government units (LGUs). In a statement on Monday, the DOH said President Ferdinand R. Marcos Jr. confirmed the allocation, which will be used to reduce patient expenses for basic accommodation to zero in participating LGU hospitals.

According to Philippines News Agency, the initiative would expand the government's zero balance billing policy beyond DOH-run facilities. The DOH said the selection of LGU hospitals that will initially implement the program will be based on their local health systems' maturity levels and other technical preparedness indicators. These include compliance with eligibility criteria, reporting requirements and operational obligations to ensure the LGU's capacity to sustain the program.

The funds will be released directly to qualified large LGU hospitals, similar to the existing zero balance billing system in DOH hospitals, and will not require guarantee letters from politicians. Further details will be announced once the DOH receives the official copy of the 2026 General Appropriations Act, which will guide the rollout and operational guidelines of the program.

The zero balance billing initiative is part of the administration's push to reduce out-of-pocket expenses and improve access to affordable healthcare, particularly for indigent and financially vulnerable patients.