Hospitals hold off honoring of guarantee letters

MANILA, Philippines — A group of private hospitals over the weekend said it will not honor guarantee letters (GLs) issued by government officials to indigent patients, unless payment of services rendered under the government’s Medical Assistance for Indigent and Financially Incapacitated Patients (MAIFIP) program, amounting to over P500 million, has been made.

The Private Hospitals Association of the Philippines Inc. (PHAPI) lamented that the hospitals’ receivables under MAIFIP is around P530 million, but until now no amount has been released.

“We have not received the supposed MAIFIP processed guarantee letters for our hospitals in Batangas. We are temporarily suspending acceptance of GLs,” PHAPI president Dr. Jose Rene De Grano said in an interview.

PHAPI said it will turn down all GLs of patients issued by any government official.

“That is all government officials from senators, congressmen, party-list representatives, governor, mayor down to barangay chairmen. All guarantee letters will not be accepted,” De Grano stressed.
He added, “We have been trying to request payment from our Center for Health Development – the regional office of the Department of Health – (in the last) two months… and their response is that they have no money to pay us.”

The group said some 43 private hospitals in Batangas are awaiting payment, including one with receivables as high as P94 million.

According to the PHAPI chief, the Memorandum of Agreement as to services falling under MAIFIP stipulates payment should be made within 60 days from filing of the claims.

“But some (claims) have already been filed since last year,” De Grano said.

PHAPI noted that Batangas has the highest MAIFIP-issued GLs in the Calabarzon region.
It again called on the Department of Health to expedite the release of payments to hospitals that provided services under MAIFIP.
The MAIFIP provides medical assistance to indigent and financially incapacitated patients. It includes in-patient services, out-patient services, emergency services, drugs and medicines as approved by the Food and Drug Administration and professional fees.

The group earlier raised concerns that its members might not be compensated for medical services provided under MAIFIP, since some patients were endorsed by political candidates who failed to win seats in the recent midterm elections.