PhilHealth says it’s committed to resolve 2017 net loss

The Philippine Health Insurance Corp. has remained steadfast to correct its net operating loss of P4.7 billion, it said in a statement. 

The 2017 financial statement has been validated and we are confident that certain conditions were not taken into account such as 1) unrecorded premium receivables from the formal sector that was at P49.1 billion but reported to be only at P48.7 billion; 

2) The over recording of the benefit claims expenses in 2017 from P105 billion to P102 billion;

3) The reduction in 2017 Primary Care Benefit Accrual of P2.1 billion to P1.1 billion; 

4) The recording of 2017 benefit payout under the Point of Service program is yet to be refunded by the Department of Budget and Management which was initially recorded as benefit claim expenses that amounted to P926 million; 

5) the unrecorded share of PhilHealth in the 2017 Bases Conversion and Development Authority amounting to P25 million.

Despite what it called the erroneous reports, PhilHealth assured its 97 million beneficiaries of its undaunted commitment to work harder towards achieving stronger financial condition by improving collection efficiency, tighten anti-fraud activities, heighten member consciousness to pay their dues and implementing prudent spending proved to be very promising.

True to its commitment, acting president and chief executive officer Dr. Roy B. Ferrer announced an enormous increase in income at end July 2018, posting a net income of P10.66 billion, surpassing its performance last June by more than P3 billion.

In his speech during his first 100 days accomplishment report to more than 6,000 employees nationwide of the state run social health insurer, Ferrer said the increase in net income was a result of the aggressive premium collection drive and the employee’s hard work and dedication.

Ferrer said: “At the close of 2017, PhilHealth’s collection efficiency for the private sector was at 68 percent. 

“To remedy this, we had to change the way we do business with our partner employers through intensified accounts management. 

“For the 1,600 large NCR accounts that were subjected to close monitoring by a group of PhilHealth’s Accounts Management Information Specialistsor P-AIMS, collection efficiency jumped to 99 percent from 50 percent in a span of 3 months.”

PhilHealth posted over P72-billion income at end July 2018 from premiums alone.

Topics: Philippine Health Insurance Corp. , PhilHealth , 2017 financial statement
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