Lawmaker Slams Budget Cuts for DOH, GOCC Hospitals Amid Staffing Shortages

A Philippine lawmaker has expressed grave concern over proposed budget cuts to public hospitals, particularly those under the Department of Health (DOH) and government-owned and controlled corporations (GOCCs). The reductions come at a time when these facilities are grappling with chronic healthcare worker shortages and strained operational budgets, raising fears about their impact on public access to medical services. During a budget hearing, Rep. Antonio L. Tinio highlighted significant cuts in personnel services (PS) and maintenance and other operating expenses (MOOE) for several hospitals under the proposed 2027 National Expenditure Program (NEP). The cuts to PS, which cover salaries and benefits for healthcare workers, are expected to affect staffing levels. For instance, Rizal Medical Center faces an estimated 8.05% reduction, or P112.8 million, and East Avenue Medical Center, about 4.82%, or P85.8 million. "Given the recognized serious shortage of hospital staff, including doctors, nurses, and support staff, why are DOH hospitals seeing substantial cuts to their Personnel Services budget?" Tinio questioned. Other DOH-retained hospitals also face PS budget cuts, including Jose B. Lingad Memorial General Hospital (P70.9 million), Davao Regional Medical Center (P32.2 million), Batangas Medical Center (P34.9 million), Jose R. Reyes Memorial Medical Center (P27.4 million), Bicol Regional Hospital and Medical Center (P15.2 million), Vicente Sotto Memorial Medical Center (P30.0 million), and Tondo Medical Center (P284,000). Department of Health officials explained that these budget adjustments reflect currently unfilled positions rather than a permanent reduction in authorized plantilla positions. "The budget for personnel services was not actually reduced. Again, the difference is explained by the fact that these are unfilled positions. But the total budget for personnel services would remain the same," said Maylene M. Beltran, a DoH undersecretary. However, the lawmaker has requested a comprehensive written report explaining the nature of these unfilled positions, the challenges behind them, and the underlying issues affecting hospital staffing. Furthermore, significant cuts are also proposed for MOOE. Quirino Memorial Medical Center is facing a reduction of around P511.25 million, or 22%, and the National Center for Mental Health, roughly P311.49 million, or 21.7%. Other hospitals facing MOOE cuts include the Research Institute for Tropical Medicine (P168.17 million), Mariano Marcos Memorial Hospital and Medical Center (P177.55 million), Rizal Medical Center (P136.50 million), Tondo Medical Center (P89.68 million), Philippine Orthopedic Center (P70.25 million), National Children’s Hospital (P59.37 million), East Avenue Medical Center (P43.78 million), San Lazaro Hospital (P43.38 million), Dr. Jose Fabella Memorial Hospital (P34.13 million), and Batanes General Hospital (P13.15 million). The DOH stated that hospital budget allocations follow normative financing as part of a broader sectoral approach. It noted that funds were shifted to PhilHealth to implement Zero Balance Billing, describing the arrangement as a "left pocket, right pocket" transaction intended to prevent double financing. The DOH's overall proposed budget was reduced to P353.8 billion under the 2027 NEP, from P448 billion under the 2026 GAA. Source: BusinessWorld Nation