Press Release
May 24, 2007

SENATOR PIA DEFENDS "HOSPITAL DETENTION LAW"

Senator Pia S. Cayetano today defended RA 9439 or the "Patients' Illegal Detention Act" from critics, saying that the newly signed law serves the greater purpose of safeguarding the people's health and well-being.

She stressed that the law will not drive private hospitals into bankruptcy as hospital owners fear since it will actually open different payment schemes to allow financially distressed patients to settle their hospital bills within reasonable bounds.

Cayetano, Chairperson of the Senate Committee on Health and Demography, clarified that RA 9439 is not meant to excuse patients from paying, but only prohibits hospitals from prolonging the detention of patients on grounds of non-payment of their hospital or medical expenses.

She assured that the new law incorporates safeguards that would prevent patients from abusing its provisions at the expense of the hospitals' own financial survival.

At the same time, she warned the Private Hospitals Association of the Philippines (PHAP) against pushing its plan to stage a series of "Hospital Holiday" protests beginning tomorrow until December to dramatize their objection to RA 9439.

"Private hospital owners are entitled to voice out their grievances, but I feel that suspending operations for an entire day, or for a series of days, would be a gross disservice to the public, particularly to their patients whose lives and well-being they have sworn to save and protect as medical professionals," she stressed.

Instead, she enjoined the PHAP to work closely with the Department of Health (DOH) and other stakeholders in drafting the implementing rules and regulations (IRRs) of RA 9439 to ensure there would be enough safeguards for them.

Cayetano stressed that the new law applies only to charity patients and does not cover those in private rooms. This is in response to PHAP's warning that the law will be abused by patients masquerading as indigents to avoid payment or indigents who would register on purpose as paying patients.

She said the law also does not prohibit hospitals from imposing different payment schemes for patients admitted in private rooms, saying other possible sources of funds may still be tapped to cover for unpaid bills.

"I share the view that the problem of unpaid hospital bills is but a symptom of a bigger crisis in the health sector that could be dealt with more comprehensively, not only through legislation, but through health sector reforms."

Cayetano has strongly and consistently been supporting and pushing for universal coverage of the Philippine Health Insurance Corporation and an increase in Philhealth benefits to reduce out-of-pocket expenses of patients. But she said this will only be possible with a bigger health budget from the national government.

Moreover, she pointed out that several measures have already been passed by Congress in this regard, but the same remain unimplemented by the Executive Branch, like the health allocation provisions under the E-VAT and excise tax laws.

"When the Expanded Value Added Tax Law was being deliberated in the Senate, I stood steadfast in my proposal to include a provision allocating 2.5 percent of incremental earnings from E-VAT to finance PhilHealth coverage expansion through the DOH, to the extent of voting 'No' to the bill when the said provision was scrapped from the final Senate version," she recalled.

"Unfortunately, not a single centavo has been transmitted under this provision two years after the E-VAT Law was approved, as Health Secretary Francisco Duque III himself would attest," she added.

She noted that a similar provision was also incorporated in the law increasing excise taxes for alcohol and tobacco products, "but these are also being observed in the breach by the budget and finance departments."

Cayetano added that she has consistently fought for an increase in the national health budget to a level equivalent to five percent of the Gross Domestic Product (GDP)the threshold recommended by the World health Organization (WHO) to achieve effective health care delivery and management.

"But at present, the current budget for health comes up to only one percent of GDP. We need the support of more sectors from the health sector to urge the Executive Branch to comply with the WHO standards, especially in the coming budget season."

As to the issue of high medicine costs, Cayetano said she is hopeful the 13th Congress would still pass the bill lowering drug prices through amendments in the Intellectual Property Code. Cayetano is co-author with Sen. Mar Roxas of SB 2263.

The measure has been approved in the Senate but its version in the House of Representatives is still pending on second reading.

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