New Health Secretary meets Cebu private hospitals to push UHC reforms

MANDAUE CITY— Acting Health Secretary Dr. Edwin Mercado met with officials of Cebu’s major private tertiary hospitals on August 18 to discuss expanding financial risk protection under Universal Health Care while keeping hospitals financially viable.

The dialogue, held at Oakridge Horizons, brought together administrators from Cebu’s biggest training hospitals: Cebu Doctors' University Hospital, Chong Hua Hospital Cebu, Chong Hua Hospital Mandaue, Healthway Cebu Velez General Hospital, Perpetual Succour Hospital, Southwestern University Medical Center, University of Cebu Medical Center, and VisayasMed Hospital.

Mercado, who previously served as PhilHealth President and CEO, said the engagement was meant to get private sector input on key UHC reforms, particularly new payment mechanisms already envisioned under the UHC Act.

A central topic was the "no co-payment policy." Under the UHC Act, private hospitals are required to dedicate at least 10% of bed capacity to basic or ward accommodations.

Mercado said the policy aims to make hospital care more affordable and reduce out-of-pocket expenses for Filipinos. Hospital representatives raised concerns on implementation, sustainability, and reimbursement rates.

The discussion also covered "prospective payment mechanisms" — a shift from fee-for-service to fixed packages that PhilHealth and the Department of Health are pushing to control costs and improve predictability for both patients and providers.

Mercado presented a proposed "shared agenda" between DOH and private providers. Priority areas include specialty care expansion through the Health Facility Development Plan, aligned with the expansion of PhilHealth Z Benefits for catastrophic illnesses.

Healthy Schools and Healthy Communities programs to be jointly implemented with hospitals; health workforce development, including scholarships for health-related courses, upskilling of primary care doctors, and career progression mapping for Doctors to the Barrios toward leadership roles in primary care teams.

"Private training hospitals play a vital role in the country's healthcare system. They provide specialized medical services and serve as training grounds for future healthcare professionals. We need them as partners if UHC is to work,” Mercado said.

Earlier in the day, Mercado graced the opening of Clinica Prime Cebu’s new Cancer Screening Facility at its Mantlewood branch.  The clinic is now accredited as a PhilHealth YAKAP provider and is the first standalone YAKAP clinic in Central Visayas with a dedicated cancer screening facility.

YAKAP, or "Yaman ng Kalusugan Program," is PhilHealth’s primary care benefit package. The event was facilitated by PhilHealth in coordination with Clinica Prime Cebu, Inc. It was originally planned before Mercado’s appointment as Health Secretary, and officials said it reflects PhilHealth’s continuing commitment to work with private providers.

With the country’s health system under pressure from rising costs and post-pandemic backlogs, DOH said stronger public-private collaboration will be critical to meeting UHC targets by 2028. (Photos: Courtesy of PhilHealth-VII)