Health Sector Faces Budget Cuts in 2024 National Budget
There are numerous questionable items in the 2024 national budget currently being discussed in Congress. An example of this is the significant budget cuts that specialty hospitals in the country might face once the final national expenditure program is approved.
Under the proposed P5.768 trillion national budget for next year, a total of P818 million has been slashed from the annual funding of four major specialty health facilities in the Philippines. These hospitals include the Lung Center of the Philippines (LCP), National Kidney and Transplant Institute (NKTI), Heart Center of the Philippines (HCP), and Philippine Children’s Medical Center (PCMC).
The Department of Health (DOH) has recommended an allocation of P199 billion for next year, down from P209 billion this year. This is ironic, as the budget was supposed to strengthen the health system and provide more resources to the sector that was severely affected by the COVID-19 pandemic.
Among the four major facilities, PCMC is set to suffer the largest cut, with a budget reduction of P720 million. The budget of PCMC will go from P2.1 billion this year to P1.4 billion in 2024. The Department of Budget and Management (DBM) attributed this cut to the hospital’s failure to complete its ICT-related proposal.
The budget cuts for the other specialty hospitals are also significant. NKTI will see a reduction of P442 million (from P1.7 billion to P1.2 billion), HCP will have a decrease of P316 million (from P2.1 billion to P1.8 billion), and LCP will experience a cut of P274 million (from P835 million to P561 million). The DBM mentioned that the budgets assigned to these hospitals align with their proposed allocations for next year.
However, these cuts are not acceptable, especially considering the government’s commitment to affordable healthcare for all. The budget for these specialty hospitals and the health sector, in general, should be increased to accommodate the rising cost of goods and the growing population in need of government assistance.
Furthermore, these limited budgets contradict President Marcos’ objective of establishing satellite specialty hospitals to provide quality healthcare to areas outside of Metro Manila. The recently signed Republic Act No. 11959, or the Regional Specialty Centers Act, requires the DOH to establish specialty health centers prioritizing cancer, cardiovascular, lung, renal care, and kidney transplants. Yet, if major facilities are already facing deep cuts, the fate of these specialty centers remains uncertain.
In addition to the specialty hospitals, the Medical Assistance to Indigent Patients program will also be reduced by P10 billion, from P32.6 billion this year to P22.2 billion next year. This program provides medical assistance to poor patients seeking treatment in government hospitals.
The prevention and control of noncommunicable diseases, another major component of the DOH budget, will face a P1.2 billion cut, going from P2.9 billion to P1.7 billion.
Deputy Speaker Ralph Recto, among the lawmakers who raised concerns about these health and social service cuts, pointed out that the “big payroll and overhead in maintaining a large bureaucracy, plus rising debt service” were to blame.
Lawmakers responsible for the budget should be reminded of President Marcos’ call for a stronger healthcare system that brings medical services to the people. These budget cuts are inconsistent with the President’s vision, especially when there are controversial allocations for confidential and intelligence funds.
If the government truly wants healthcare to be accessible to every Filipino, it should prioritize funding for the health sector.
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