National Government posts highest growth on health expenditures... but households continue to bear most of the spending on health

Reference Number: 20130606SS101
Release Date:07 June 2013

The country’s total health expenditure increased by 13.2 % from PhP380.8 billion in 2010 to PhP431.0 billion in 2011. Private sources still account for majority of the total health spending with 63.1%, followed by the government share of 27.0%; social insurance and grants from the rest of the world account for the remaining 9.9%.

From private sources, household expenditures on health still accounts to more than half of the country’s total health expenditure or PhP227.2 billion in 2011; a 13.6% jump from PhP200.0 billion in 2010.
While households continue to spend more for their health care, it is notable that the national government spending on health grew from PhP43.4 billion in 2010 to PhP53.1 billion in 2011, registering the largest growth of 22.3% among other sectors.  National government’s share to total health expenditure is steadily increasing in recent years.  Increased budget allocations on health sector particularly to Department of Health (DOH) and Department of Social Welfare and Development (DSWD) contributed to this growth, in line with the government’s commitment in implementing policy and programs for the effective delivery of health services.
In 2011, health benefit payments from the National Health Insurance Program (NHIP) and health maintenance organization (HMO) continue to show improvements with 15.5% and 16.1% growth rates, respectively. However, donor support on health care was halved from PhP6.4 billion in 2010 to PhP3.5 billion in 2011. Also, the share of employees’ compensation on health financing has dramatically dropped by 17.1%, landing to PhP104 million.  
Other notable findings revealed in the 2011 PNHA report are as follows:
  • Total health expenditure has reached PhP431.0 billion at current prices in 2011. This is a 13.2% increase compared to PhP380.8 billion in 2010.
  • Per-capita health expenditure, at current prices, was registered at PhP4,577 in 2011 – a 10.3% increase from PhP4,112 in 2010
  • While national government’s share to total health expenditure rose from 11.4% in 2010 to 12.3% in 2011, local government’s share slightly fell from 15.2% in 2010 to 14.7% in 2011.
  • Local government still contributes largely to the country’s total health spending, second to households. Its estimated contribution of PhP63.4 billion in 2011 is a 9.2% increase from the previous year’s PhP58.0 billion.
  • Although, the rate of growth of private schools’ spending on health showed a slow movement, it has increased to PhP3.7 billion.
  • As percent of GDP, health spending was at 4.4% in 2011 – a very slight increase from the previous year (4.2%).
  • Based on the goals set by the Department of Health in its National Objectives for Health 2005-2010, only two out of seven health care financing indicators were within the target, namely: 1) total health expenditure as a percent of gross national income: and 2) per capita health expenditure. However, it is worth noting that national government spending for public health care is at close quarters with the target.
The PNHA presents information on how much is spent on health care goods and services and who is paying for these goods and services. This information is useful in analyzing the appropriateness of the levels, composition, and structure of health expenditures, especially those of the government. 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 latest estimates of the 2011 PNHA were computed based on the revised sectoral estimation methodologies developed by the NSCB Technical Staff, endorsed by the Interagency Committee on Health and Nutrition Statistics chaired by the DOH, and approved by the NSCB Executive Board through Resolution No. 8-2011.  The 2005-2011 Final PNHA Report will be released in June 2013.
Secretary General


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