Proposed 2011 budget shows

further healthcare privatization

October 2010

Health Alliance for Democracy

1
 NG EXPENDITURE ON HEALTH COMPARED TO DEFENSE AND DEBT, 2011e (PhP billion)

Health: Defense: Debt Service

PhP 38.6B PhP 77.5 B (Interest &
cut by up by Principal):
P1.4B P 4.1 B P 823.3 B
up by
P80.4 B

Health Sector Budget, 2010 and 2011

(Source: BESF 2011)

Adjusted 2010 Proposed 2011 Change

I. Departments
I.1. DOH 29,284,420,000 33,331,691,000 4,047,271,000
I.1a. Office of the Secretary 25,238,784,000 32,722,520,000 7,483,736,000
I.1b. Commission on Population 274,102,000 298,124,000 24,022,000
I.1c. National Nutrition Council 3,771,534,000 311,047,000 (3,466,487,666)
I.2. Other executive offices
I.2a. Dangerous Drugs Board 179,187,000 165,168,000 (14,019,000)
I.3. Department of National Defense
I.3a. Veterans Hospital 713,554,000 848,060,000 134,506,000
I.4. Department of Science and Tech 159,772,000 220,022,000 60,250,000
I.4a. FNRI 104,056,000 141,236,000 37,180,000
I.4b. PCHRD 55,716,000 78,786,000 23,070,000
II. GOCCs 1,767,960,000 797,360,000 (970,600,000)
II.1 Lung Center 301,560,000 157,560,000 (144,000,000)
II.2 NKTI 529,050,000 162,800,000 (366,250,000)
II.3 PCMC 366,300,000 318,000,000 (48,300,000)
II.4 PHC 531,050,000 122,000,000 (409,050,000)
II.5 PITAHC 40,000,000 37,000,000 (3,000,000)
II.6 PHIC - -
III. Other specific purpose funds 7,924,864,000 3,264,220,000 (4,660,644,000)
III.1 Allocation to LGUs 5,200,226,000 0 (5,200,226,000)
III.1a. Municipal Development Fund -
III.2b. Indigent subsidy -
III.2 Misc. Personal Benefits 1,705,851,000 1,649,120,000 (56,731,000)
III.3 Calamity Fund 40,000,000 100,000,000 60,000,000
III.4 Tax expenditures Fund 381,420,000 150,000,000 (231,420,000)
III.5 PDAF 597,367,000 1,365,100,000 767,733,000

TOTAL 40,029,757,000 38,626,521,000 (1,403,236,000)

2
 MAJOR CUTS IN THE HEALTH BUDGET
(2010 General Appropriations Act vs. 2011 National Expenditure Program)

1 Implementation of the Doctors to the Barrios

and Rural Health Practice Program 4 Operation of Special Hospitals, Medical
Centers and Institutes for Diseases Prevention
and Control
P182.444 M P123.284 M
P3.260 B P3.256 B
P59.16 M P 4.03 M

(1) Jose Reyes Memorial Medical Center, (2) Rizal

Medical Center, (3) East Avenue Medical Center, (4)

2
Quirino Memorial Medical Center, (5) Tondo Medi-
Subsidy to Indigent Patients for Confinement in cal Center, (6) Jose Fabella Memorial Hospital, (7)
Specialty Hospitals and for the use of special- National Children’s Hospital, (8) National Center
for Mental Health, (9) Philippine Orthopedic Center,
ized equipment, etc., not available in government (10) San Lazaro Hospital, (11) Research Institute
hospitals (including Philippine Heart Center, Na- for Tropical Medicine, (12) “Amang” Rodriguez
Medical Center
tional Kidney and Transplant Institute, Lung Center
of the Philippines and Philippine Children’s Medi-
cal Center

P36 M P16 M
5 Operation of Centers for Health
Development - Direct service provision in

P20 M 40 hospitals nationwide

P5.156 B P 4.792 B
P 363.7 M

3 Family Health including Family Planning

6 Premium Subsidy for Indigents under the
National Health Insurance Program

P1.434 B P931.35 M P 5.17 B P 3.5 B

P 503 M P 1.67 B

3
 MAJOR INCREASES IN THE HEALTH BUDGET
(2010 General Appropriations Act vs. 2011 National Expenditure Program)

1 Expanded Program on Immunization

2
Health Facilities Enhancement Program

P 1.47 M P 3.892 B
P 990.8 M P 2.463B P 3.252 B P 7.144 B

General Appropriations Act 2010 vs National Expenditure Program 2011: Major cuts and increases
TOTAL Change
GAA 2010 NEP 2011

DEPARTMENT OF HEALTH 28,686,083,000 32,627,444,000 3,941,361,000

28,686,083,000 29,127,444,000* 441,361,000

* Less NHIP transferred from Special Purpose
Funds in 2010 to DOH budget in 2011 (3.5 billion
increase in 2011)

1. Implementation of the Doctors to the Barrios

MAJOR CUTS and Rural Health Practice Program 182,444,000 123,284,000 (59,160,000)

2. Subsidy to Indigent patients for Confinement in

Specialty Hospitals and for the use of specialized
equipment, etc. not available in government
hospitals (including Philippine Heart Center,
National Kidney and Transplant Institute, Lung 36,000,000 16,000,000 (20,000,000)
Center of the Philippines and Philippine
Children's Medical Center)

3. Family Health including Family Planning 1,434,349,000 931,349,000 (503,000,000)

4. Operation of Special Hospitals, Medical
Centers and Institutes for Disease Prevention 3,259,992,000 3,255,963,000 (4,029,000)
and Control
5. Operation of Centers for Health Devt - Direct
service provision 5,156,043,000 4,792,325,000 (363,718,000)

6. Premium Subsidy for Indigents under the

National Health Insurance Program 5,170,000,000 3,500,000,000 (1,670,000,000)

1. Expanded Program on Immunization

MAJOR INCREASES 990,784,000 2,462,938,000 1,472,154,000

2. Health Facilities Enhancement Program 3,251,695,000 7,143,909,000 3,892,214,000

4
 Department of Health Budget, 2010 and 2011
(Sources: GAA 2010, NEP 2011)
TOTAL Change
GAA 2010 NEP 2011
DEPARTMENT OF HEALTH 28,686,083,000 32,627,444,000 3,941,361,000
A. OFFICE OF THE SECRETARY 24,649,765,000 32,028,616,000 7,378,851,000
A. PROGRAMS 22,177,223,000 29,979,290,000 7,802,067,000
I. General Administration and Support 290,964,000 305,913,000 14,949,000
II. Support to Operations 1,027,702,000 4,394,118,000 3,366,416,000
a. Formulation and Development of National 43,569,000 45,720,000 2,151,000
Health Policies and Plans including Essential
National Health Research
b. Health Information Systems and Technology 188,600,000 190,372,000 1,772,000
Development
c. Health Human Resource Development 290,635,000 232,919,000 (57,716,000)
d. Development of Policies, Support 27,982,000 29,672,000 1,690,000
Mechanisms and Collaboration for
International Health Cooperation
e. Health Systems Development 354,107,000 355,626,000 1,519,000
III. Operations 22,177,223,000 25,279,259,000 3,102,036,000
a. Regulation Programs 1,292,581,000 1,428,015,000 135,434,000
1. Regulation of Food and Drugs 225,751,000 243,138,000 17,387,000
2. Regulation of Health Facilities and 46,943,000 49,039,000 2,096,000
Services
3. Regulation of Devices and Radiation Health 37,384,000 38,799,000 1,415,000
4. Quarantine Services and International 102,503,000 97,039,000 (5,464,000)
Health Surveillance
5. National Pharmaceutical Policy 880,000,000 1,000,000,000 120,000,000
Development including provision of drugs
and medicines, medical and dental
supplies to make affordable quality drugs
available
b. Service Delivery Programs 12,394,263,000 16,971,398,000 4,577,135,000
1. Epidemiology and Disease Surveillance 145,650,000 137,783,000 (7,867,000)
2. Disease Prevention and Control 4,779,139,000 5,542,956,000 763,817,000
3. Operation of the PNAC Secretariat 10,452,000 10,944,000 492,000
4. Health Promotion 172,322,000 153,978,000 (18,344,000)
5. Health Emergency Management including 188,957,000 169,849,000 (19,108,000)
provision of emergency drugs and supplies
6. Health Facility Planning, Operations 3,513,581,000 7,410,650,000 3,897,069,000
and Infrastructures Development
7. Operation of Special Hospitals, 3,259,992,000 3,255,963,000 (4,029,000)
Medical Centers and Institutes for
Disease Prevention and Control
8. Operation of Dangerous Drug Abuse 312,170,000 289,275,000 (22,895,000)
Treatment and Rehabilitation Centers
c. Operation of Centers for Health Development 7,171,713,000 6,879,846,000 (291,867,000)

B. PROJECT(s) 2,472,542,000 2,049,326,000 (423,216,000)

I. Locally-Funded Project(s) 2,054,000,000 1,500,000,000 (554,000,000)
a. Provision for Potable Water Supply
II. Foreign-Assisted Project(s) 418,542,000 549,326,000 130,784,000
a. Help for Catubig Agricultural Advancement 6,708,000 4,952,000 (1,756,000)
Project- JBIC Loan
b. Womens Health and Safe Motherhood Project II 185,290,000 186,903,000 1,613,000
c. Development of Sub-Specialty Center for 90,000,000 146,359,000 56,359,000
Heart, Lung and Kidney Diseases in Luzon,
Visayas and Mindanao
d. Health Sector Development Project 112,544,000 188,131,000 75,587,000
e. Health Sector Reform Project-KFW Loan 24,000,000 22,981,000 (1,019,000)

5
 NG Expenditure, 2011e (PhP billion)

900
823.3
800
Debt service:
700
21X
20X larger
600
PhP billion

500

400

300 271.7
Defense:
2X larger
200

77.5
100 38.6
5.7
0
Education Health Housing Defense Debt service
(interest &
principal)

6
An Alternative to the
2011 Aquino Health Budget
by the Health Alliance for Democracy (HEAD)
T he national health situation, with
spiraling incidences of dengue
and other infectious diseases and
deteriorating conditions of hospitals,
warrants an allocation of funds reflec-
tive of the severity of the problem.
We need a health budget that ad-
dresses the most urgent health needs
of the people and is realistic. It also
must be provided now.
• No Filipino should ever be deprived of
health services because he/she has no
money.
• No Filipino should ever succumb to dis-
ease simply because there is no health-
care facility nearby.
• Women should not die of something so
natural as pregnancy and child-delivery
• The right to health should be guaranteed
and fulfilled by the Aquino government.
• The current policy of healthcare privati-
zation and the corporatization of govern-
ment hospitals should be stopped
P 90 BILLION HEALTH BUDGET
FOR 2011
lP 40 billion for improving the public health-
care delivery system
• All 12 DOH retained hospitals should
each get P 1 billion
• All 55 public hospitals nationwide
should each get an average of P 500
million
• These funds can be used to improve
and upgrade their equipment and
ensure sufficient medical supplies and
medicine in the pharmacies
BUDGET PROPOSAL FOR
THE PHILIPPINE GENERAL HOSPITAL
• P 5 billion broken down as follows:
• P1.8 billion for personal services
• P1.3 billion for maintenance and other
operating expenses
• P1.9 billion for capital outlay
• Hire additional 300 nurses, 100 doctors, 100
utility workers, 50 nursing aides, 200 admin
personnel
lP 25 billion to fund health human resource
maintenance and development
• P 10 billion for the full implementation
of the Nursing Act of 2002 and the
Magna Carta of Public Health Workers
• P 7 billion for proposed increase in sal-
aries of government physicians, nurses
and other health personnel, including a
P3000 increase in the base pay of all
government health workers
• P 8 billion for opening additional
tenured positions for doctors (3,000),
nurses (8,000), and other health person-
nel in government hospitals and health-
care centers, including barangay health
workers (regional down to municipal)
lP 25 billion for preventive and public health
programs, and health promotion
• P 5 billion for infectious diseases, includ-
ing tuberculosis, dengue, malaria, HIV/
AIDS
• P 5 billion for implementation of the Na-
tional Drug Policy and for drug regula-
tion and promotion of rational drug use
• P 5 billion for reproductive health and
safe motherhood
• P 2 billion for non-infectious diseases
• P 2 billion for health research (initial
fund)
• P 500 million each for oral/dental
health and mental health (initial fund)
• P 2 billion for nutrition programs (sup-
plementary)
• P 3 billion for promotion of other pri-
mary health care programs
lThis alternative health budget also proposes
concomitant changes
• Partial reversal of devolution: Re-nation-
alization of health personnel in terms of
salaries and benefits as an initial step
towards re-nationalization of health-
care.
• Automatic appropriation for health of
15% in the Internal Revenue Allocations
(IRA) for LGUs
lThere are sources for these funds:
• Re-allocation of existing funds to put
health as a priority
• P 80 billion representing the increase in
debt payments
• P 170 billion lost to corruption yearly
• Billions in unpaid corporate taxes