DOH Proposes P358.8-B Budget for 2027, Cites Need for Additional Funds for PhilHealth and Hospitals

The Department of Health (DOH) has proposed a P358.8 billion budget for 2027, aiming to provide affordable and accessible healthcare to Filipinos. However, the agency indicated that it needs close to P200 billion more to cover the Philippine Health Insurance Corporation (PhilHealth) and hospital operations. During a House budget hearing on Wednesday, Secretary Edwin Mercado stated that the proposed 2027 budget is 21% lower than the P448 billion appropriated budget for 2026. Mercado provided a breakdown of the proposed budget under the Unified National Agenda for Health (UNA): P117 billion for Personnel Services (PS), P218 billion for Maintenance and Other Operating Expenses (MOOE), and P19 billion for Capital Outlay (CO). The three priority items for the DOH's 2027 proposed budget are PhilHealth, the Health Facilities Enhancement Program (HFEP), and the operations of DOH hospitals, according to Mercado. To fund its planned programs, the DOH is seeking additional funding as follows: "Based on our projections of the actual benefit payments for indirect members, P74 billion is insufficient. The initial projection is P244 billion," Mercado said, highlighting the need for additional funds for PhilHealth. He added that the additional funding for HFEP and the operations of DOH hospitals, including regional hospitals, will help local government units provide for the health needs of the people. This budget proposal, if approved, could impact the sustainability of the Philippines' healthcare system, particularly the public health insurance scheme PhilHealth, and its capacity to deliver services to the populace. Rising healthcare costs and inadequate medical infrastructure in provincial areas have been persistent challenges in the Philippines, and the effectiveness of this budget in addressing these issues remains to be seen. Source: GMA News Philippines