Is the government paying more than it should?

This definition of "overpayment" in the context of FFS is outright wrong. We are accustomed to thinking that paying a peso for every peso is the only right thing to do in a country that is deluged by cases of graft and corruption. Our past has conditioned us to think that paying over or under … Continue reading Is the government paying more than it should?

Should the government “criminalize” efficiency gains?

Efficiency gains should NOT be criminalized because they encourage the health care system to provide the best care we all deserve. At one point in time, HCPs paid under the ACR system will achieve efficiency gains by decreasing the overall cost of health care. HCPs do this by meticulously deciding on what and what not … Continue reading Should the government “criminalize” efficiency gains?

Government should provide financial support to PhilHealth

I agree that PhilHealth, as the implementer of the NHIP, should continue providing FP to all Filipinos by reimbursing claims. PHILHEALTH SHOULD NOT DENY CLAIMS JUST SO IT CAN PRESERVE FUNDS and have a longer actuarial life. IMHO, PhilHealth's role as a strategic purchaser of healthcare services/goods is the fulcrum that balances the health and … Continue reading Government should provide financial support to PhilHealth

Principle behind IRM is good

During the Committee Hearing on August 17, Marikina Rep. Quimbo was surprised to know that hospitals are allowed to use funds from the Interim Reimbursement Mechanism (IRM) for other operational expenses (e.g. salary). Let me reiterate that the same mechanism is expected when "prospective payments" (in the form of global budgets) will be provided to hospitals … Continue reading Principle behind IRM is good

Congressional hearing: Corruption allegations against PhilHealth

Congressional Hearing 5 August 2020   1) I do not agree with Cong. Defensor when he said that investing in an IT system while still using the All Case Rate (ACR) system will "computerize" corruption in PhilHealth. Regardless of the provider payment system, an IT system will actually help the Corporation and health care providers … Continue reading Congressional hearing: Corruption allegations against PhilHealth

Pandemic Financing: How the World is Funding the COVID-19 Response (Part 2)

What are the considerations in the provider payment mechanism? How we raise money to pay for health care is an important issue. But equally important are the daunting tasks of organizing health service delivery, and compensating individuals and organizations that provide these services. To meet the increasing demand for health care services, health care workers … Continue reading Pandemic Financing: How the World is Funding the COVID-19 Response (Part 2)

Health Economics Series: Cost Efficiency and Allocative Efficiency

A government can be cost-efficient but have poor allocative efficiency. Cost efficiency achieves the maximum health benefit at a given cost while allocative efficiency maximizes the health of society by achieving the right mixture of health goods and services according to preferences. Say for example the government wants to produce more midwives under a national … Continue reading Health Economics Series: Cost Efficiency and Allocative Efficiency

Health Economics Series: Average Productivity and Marginal Productivity

Average productivity (AP) is simply the quotient of the total output (O) divided by the number of units of a certain input (I) [i.e. AP = O / I]. Marginal productivity (MP), on one hand, is the additional output derived from an additional unit of a certain input [i.e. MP = ∆O / ∆I]. Example: … Continue reading Health Economics Series: Average Productivity and Marginal Productivity

Health Economics Series: Uncertainty and Asymmetric Information

Uncertainty is a situation where it is impossible to know the likelihood (unknown probabilities) of an event occurring while information asymmetry is a situation in which one party has more / better information than the other party. Many Filipinos exhibit the first type of information failure: uncertainty. Filipinos are not keen on examining the financial … Continue reading Health Economics Series: Uncertainty and Asymmetric Information

Free-rider Problem in the Philippine Health Care System

From an economic perspective, the production of public goods can lead to a market failure. A market fails when the free market economy does not achieve efficient results. Such failure can be attributed to the free-rider problem. A public good has a classic free-rider problem because of its two characteristics: non-excludability and non-rivalry. A good … Continue reading Free-rider Problem in the Philippine Health Care System