Hospitals to go bankrupt if government insists on drug prices cut – PHAP

MANILA, Philippines – Private hospitals will “go bankrupt” if the government insists on implementing Executive Order 821 cutting the prices of 43 types of medicine on Saturday, according to Private Hospitals Association of the Philippines (PHAP).

Bu Castro, PHAP legal counsel, said hospital pharmacies need at least six months to dispose of medicine stocks bought earlier at a higher price.

“We are not blackmailing them, but that’s what will happen if they don’t defer the implementation of the order,” he said.

“What we are stating here is the reality. Hospitals stand to lose a lot of money because they will be the one to shoulder (the price cut), not the pharmaceutical companies.”

Castro said the health department’s assurance that drug firms would give rebates or adjust the prices of medicine previously delivered must be in “black and white.”

“It’s not documented,” he said.

“It’s just verbal and how can we rely on that… if the drug stores sell their medicines at discounted rate, what is the assurance that they will get a rebate?”

Castro, also Alliance of All Health Organizations of the Nations-Philippines president, is set to meet with organizations of nurses, medical technologists, nutritionists and radio technicians to inform them of what to expect after medicine price reduction takes effect on Aug. 15.

“We’ll tell them that hospitals might run out of money to pay for their salaries, are they still willing to work?” he said.

“Can they report for work even without salaries? We don’t want this to happen but On the other hand, the Philippine Medical Association (PMA) and the Health Alliance for Democracy (HEAD) are divided on whether the price cut should be deferred.

Dr. Rey Melchor Aquino, PMA president, agreed with PHAP that hospital pharmacies should be given more time to consume their stock medicine.

However, Dr. Geneve Rivera, HEAD secretary-general said PHAP’s concern is “legitimate,” and that the price reduction should push through.

“While their concerns may be legitimate, they should be very careful to avoid being misconstrued as a surrogate of the big pharmaceutical companies in a proxy war against efforts to make medicine affordable,” she said.

“These big transnational drug companies only want to delay or derail any form of drug price regulation.”   – Sheila Crisostomo, Philippine Star