A legislator from the Bicol Region has revealed that some private doctors refused to accept government guarantee letters (GLs) as payment for their services for several reasons, including avoidance of paying taxes.
Camarines Sur Rep. Luis Raymund Villafuerte made the disclosure during the previous hearing of the Commission on Appointments where he shared this concern to Health Secretary Ted Herbosa.
Villafuerte, majority leader for the House contingent of the CA, said some doctors, especially those who will get P100,000 or more in professional fees for their services, refuse to accept government GLs.
GLs were provided under the Department of Health’s Medical Assistance for Indigent Patients (MAIP) program and can be used by patients to pay their hospital bills.
Villafuerte cited complaints he received from families of indigent patients confined in local hospitals such as the Bicol Medical Center in Naga City.
“Pag pumasok sila (indigent patients) sa regional hospital, covered ng PhilHealth (Philippine Health Insurance Program), pupuntang Malasakit, then merong MAIP,” Villafuerte said.
“However, minsan may billing po, P100,000 … P200,000 ang professional fee, hindi po ina-accept ng mga doktor ang MAIP. Malaki pong problema yan. While there are funds available, while MAIP funds are available … hindi po ina-accept ng mga doctor (However, sometimes there are billings of P100,000 or P200,000 professional fee. The doctors don’t accept the MAIP. It’s a big problem. While MAIP funds are available, the doctors don’t accept that) ” Villafuerte noted.
The legislators cited reasons why some doctors refused to accept GLs.
According to him, these physicians will receive only half of their professional fee since MAIP only covers a maximum of 50 percent of their approved fee.
He also said it takes doctors about two months or more before they get paid, and
the doctors need to declare the government-issued GLs as income and thus have to pay the required income taxes on such earnings.
Herbosa told the CA members that he was aware of the problem and would try to solve the issue by
issuing an order prohibiting private doctors accredited by the DOH to treat their patients confined in government hospitals from rejecting MAIP-issued GLs.
He also said he would direct the withdrawal of DOH accreditation of private doctors who refused to accept government-issued GLs, as well as those who refused to practice in national and local government hospitals.
Herbosa also said he would institute reforms and computerization of the MAIP system to “make it easier for physicians to encash their GLs, as well as seek adjustment in the current administrative cost equivalent of two percent of the annual MAIP Fund to a five percent in order for the DOH to be able to hire more staff to handle the processing of the documents.
Following the enactment of the Malasakit Centers Act (RA 11463) in 2019, the DOH issued Administrative Order 2020-0060 to revise the MAIP guidelines to expand its coverage and harmonize the funding sources for medical assistance.
Villafuerte is among the authors of RA 11463, which provides for the establishment of Malasakit Centers in all DOH hospitals. The Centers serve as one-stop shops for the provision of medical and financial assistance in the form of GLs, promissory notes, or vouchers.
Under the proposed 2024 national budget, he MAIP is allotted a P22-billion budget.