Private Sources still the top contributor to total health expenditure in 2013

Reference Number: 


Release Date: 

Tuesday, August 4, 2015
The country’s total health expenditure (THE) went up by 11.7 percent, from PhP 471.1 billion in 2012 to PhP 526.3 billion in 2013. This could be mainly attributed to the large amount expended for health care by Private Sources, majority of which (82.6 percent) were disbursed by households (Private Out-of-pocket) for their health needs in 2013. 
Discounting the effect of inflation, THE grew by 8.5 percent from PhP 362.1 billion in 2012 to PhP 392.8 billion in 2013. 
Private sources remained the biggest contributor to THE, accounting for 68.2 percent of the total outlay for health during the year under review. Government came in a far second with 18.9 percent share followed by Social Insurance with 11.5 percent and the Rest of the World (ROW) with 1.4 percent. 
In terms of growth rate, ROW exhibited an exceptional growth at 81.5 percent, from PhP 4.0 billion in 2012 to PhP 7.2 billion in 2013. This was followed by Social Insurance which grew by 15.0 percent, Government by 10.8 percent and Private Sources by 10.6 percent. 
Each Pinoy spent PhP 5,360 for health 
With THE growing faster (11.7 percent) than the population (1.7 percent), per capita health expenditure at current prices was registered at PhP 5,360.0 in 2013, a 9.8 percent increase from PhP 4,881.0 in 2012. At constant 2006 prices, per capita health spending rose by 6.6 percent, from PhP 3,752.0 in 2012 to PhP 4,000.0 in 2013. 
THE as a percentage of GDP exceeded the DOH target
The 2013 THE as a percentage of the country’s Gross Domestic Product (GDP) was estimated at 4.6 percent, slightly higher than the 4.5 percent target set forth in the 2010-2020 Health Care Financing Strategy (HCFS) of the Department of Health (DOH). Similarly, the revised 2012 THE estimate likewise attained the 4.5 percent HCFS goal set by DOH. 
Other findings based on the results of the 2013 Philippine national health Accounts (PNHA) are:
  • Total Government expenditure on health care goods and services increased from Php 89.9 billion in 2012 to PhP 99.7 billion in 2013, registering an annual growth of 10.8 percent. Despite the PhP 9.8 billion increase in level, Government percentage share to THE decreased by 0.2 percentage points to 18.9 percent from 19.1 percent in 2012. 
  • Notwithstanding the 33.9 percent decline in Employees’ Compensation (EC), Social Insurance managed to grow by 15.0 percent in 2013 due to the 15.1 percent increase in health benefit payments provided by the National Health Insurance Program amounting to PhP 60.4 billion. Meanwhile, the abrupt decrease in EC payments is due to SSS' temporary stoppage of processing and payment of medical services relative to the enhancement of the automated processing of EC Medical Reimbursement claims. 
  • Pinoy households continued to bear the heaviest burden in terms of spending for their health needs as Private Out-of-Pocket accounted for 56.3 percent of the total health expenditure in 2013. This is equivalent to an estimated share worth PhP 296.5 billion. This figure represents an improvement from 57.2 percent in 2012 but remained relatively high compared with the 45.0 percent HCFS target of DOH.
  • Donor support on health care from other countries (ROW) almost doubled from PhP 4.0 billion in 2012 to PhP 7.2 billion in 2013. However, the actual contribution poured in through these grants failed to establish a substantial impact on the 2013 THE as ROW contributed a meager 1.4 percent to the total health spending in the same year.
Only three out of eight health care financing indicators surpassed the HSRA targets for 2013
Based on the 2010-2020 HCFS goals set bythe DOH, three out of eight health care financing indicators surpassed their respective targets namely: (1) THE as percentage of GDP with 4.6 percent, exceeding the 4.5 percent target; (2) National government spending as percentage of THE at 11.9 percent compared to the 10.0 percent requirement; and (3) National government spending for public health (in billion pesos) at 21.8, doubled the 10.0 percent target.
1/  Based on the 2010-2020 Health Care Financing Strategy (HCFS)goals set bythe Department of Health (DOH)
2/ Revised 
On the other hand, the following health care financing indicators were below the expected targets:
1/ Based on the 2010-2020 Health Care Financing Strategy (HCFS)goals set bythe Department of Health (DOH)
2/ Revised
The PNHA presents information on how much is spent on health care goods and services and who is paying them. These information (1) provide insights on the efficiency and effectiveness of health care financing system, (2) help determine appropriate interventions to delivery of health care, and (3) provide inputs to evaluation of health programs. The data can also help determine whether the aggregate health care spending from all sources, that is, the government, the social insurance sector, the private sector, and the rest of the world, is adequate to meet minimum requirements and identify probable areas of inefficiencies in allocating health care resources.
The 2013 PNHA estimates followed the revised sectoral estimation methodologies developed by the then NSCB Technical Staff, endorsed by the Interagency Committee on Health and Nutrition Statistics chaired by the DOH, and approved by the then NSCB Executive Board through Resolution No. 8, series of 2011. 
For the National Statistician and Civil Registrar General:
Deputy National Statistician
For Censuses and Technical Coordination Office
Officer-in-Charge, PSA