P45-million COVID-19 funds to dialysis provider still ‘unjustified’ — Lacson

In this Aug. 11, 2020 photo, Sen. Panfilo Lacson grills PhilHealth officials on the purchase of overpriced IT equipment during the Committee of the Whole hybrid inquiry on the alleged irregularities at the state insurer.
Senate PRIB

MANILA, Philippines — There is no justifying PhilHealth's release of P45 million in funds meant for calamitous events to a dialysis company amid the COVID-19 pandemic, Sen. Ping Lacson said on Thursday.

This comes after a dialysis company linked to alleged anomalies in PhilHealth's payment advances to healthcare institutions (HCIs) issued a statement denying any illegal or unethical activity.

"Nothing can justify the release of funds in the aggregate amount of at least P45 million to B. Braun Avitum Dialysis Center Inc. that has not catered to a single COVID-19 patient and with such record speed, compared to more deserving HCIs, especially government hospitals catering to COVID patients," Lacson countered.

B. Braun Avitum Philippines in their statement confirmed that it received funds from PhilHealth from its Interim Reimbursement Mechanism, which is intended for healthcare institutions hit by calamitous or "fortuitous events."

According to the company, the funds it received from PhilHealth have allowed it "to continue to provide renal services to dialysis patients who require regular treatment."

"Such treatment must not be interrupted despite the coronavirus situation, as our parents' lives will be compromised," it added.

However, Lacson has emphasized that the issue is with the release of funds meant for COVID-19 response to a healthcare institution that does not cater to coronavirus patients.

According to the senator, PhilHealth has released "hundreds of millions" to dialysis centers and maternity care providers but could not release P19 million to the Ospital ng Maynila which was accepting COVID-19 cases.

SEC registration

As the Senate resumed its probe into PhilHealth on Tuesday, Lacson took further issue with the dialysis company, claiming that there is no B. Braun Avitum dialysis center registered with the Securities and Exchange Commission.

He presented a certificate from the SEC which stated that “B. Braun Avitum Dialysis Inc” is not a registered corporation and that the commission only had a “B. Braun Medical Supplies Inc” on record.

"Our company was registered with the [SEC] on 11th December 1985 as B. Braun Medical Supplies Inc., whereas B. Braun Avitum a wholly-owned subsidiary of B. Braun Medical Supplies, Inc. was originally incorporated as Philippine Renal Care, Inc. on 24th January 2002...and later renamed as B. Braun Avitum Philippines, Inc.," the company said on Thursday.

"The [SEC] issued a certification which I read during last week's hearing that B. Braun Avitum Dialysis Center Inc is not registered as a corporation," Lacson countered later the same day.

"Unless they show their documents to the contrary and validated by SEC, I will have to stand by the government agency's issued document," he added.

Meanwhile, PhilHealth on Thursday night announced that it would be suspending the implementation of IRM to “review and resolve” issues arising from the congressional inquiry.

The agency also vowed to find ways to make the IRM more responsive to the needs of healthcare facilities affected by the COVID-19 pandemic.

On Friday, PhilHealth clarified that "regular COVID-19] inpatient benefits, testing and community isolation packages shall continue to be enjoyed by its affected members," despite the suspension. 

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