PHAPI Expresses Concerns Over Magna Carta for Private Health Workers

The Private Hospitals Association of the Philippines Inc. or PHAPI has raised doubts over the proposed Magna Carta for Private Health Workers, saying it would not be able to effectively address the wage concerns of health professionals in the private sector. In its position paper on the proposed House Bills 00533, 05680 and 09129, PHAPI said the proper agency to engage in wage determination for private health workers is the Regional Tripartite Wages and Productivity Board or RTWPB. “The proposed Magna Carta is founded on a commendable objective. However, its wage-related provisions must be assessed in light of the actual economic capacity of private hospitals. Unlike government health facilities, private hospitals do not receive regular public subsidies and must depend primarily on payments from patients and reimbursements from PhilHealth,” PHAPI president Dr. Jose Rene de Grano said. De Grano noted that reimbursements are often delayed, which create cash-flow difficulties that affect hospitals’ ability to meet their payroll responsibilities in a timely manner. He added that the proposed legislation must recognize that “private hospitals are not necessarily highly profitable enterprises; rather, they are service-oriented institutions that must balance operational costs with the need to keep health care accessible and affordable to patients.” “Patient occupancy varies from time to time, while the rising cost of medicines, equipment and medical supplies – made worse by global instability such as the US-Iran conflict – has placed many private hospitals in a position of financial vulnerability. Mandating an entry-level monthly salary of P35,000 to P50,000 for nurses and daily compensation ranging from P850 to P1,100 for other health workers fails to consider the delicate financial condition of private health institutions,” De Grano said. PHAPI submitted its position paper following a request from Rep. Ciriaco Gato Jr., House committee on health chair.