One of the controversial issues in health is the modernization of the Philippine Orthopedic Center (POC) under the Public Private Partnership (PPP) program of the government. Because of the complexity of the issue, the public has not been getting the correct information on the matter.

Facts concerning the new POC

POC will not be privatized. Some groups are claiming that POC will be privatized. This is simply not true. To explain briefly, privatization means that the government sells a property and lets the private group dictate the price and services rendered. For the new POC, government will retain ownership of the hospital, will continue to regulate services and will get majority of charity beds for the poor. Hence these three points make it very different from the old privatization scheme.

Government will retain ownership of hospital. This is the most important difference between privatization and PPP.

Government will regulate services given. The DOH will head a governing council that will oversee how the hospital is run. The government is not relinquishing control to the private sector.

Government is assured of 70% or 490 PhilHealth-Charity beds for the poor. This is written explicitly in the contract, which the private sector must follow. This is to correct false reports that only 10% will be devoted to charity.

How the private sector will benefit

Private sector has 30% or 210 private beds. The private sector can earn money from the private cases, without putting the poor at a disadvantage.

Private sector does not need to spend much for marketing. This is because it will get the Philippine Orthopedic Center branding already.

Orthopedic cases are on the rise because of the aging population. Hence, high technology surgeries, implants and treatments will now be offered to all Filipinos. Each of us can potentially benefit from having a modern orthopedic center.

Efficiency can give rise to profits. By performing operations quickly and safely, the new POC can serve an estimated four times more patients.

How the government and poor will benefit

New building and facilities built at no cost to the government and the people’s taxes.

New building and facilities built quickly in 2 years. Otherwise, Filipinos will have to wait 15-20 years if and when a modern POC would be built. With the present budget, there is no way P5.6 billion can be spent on one hospital alone.

Poor patients will get quality care and medical costs will be shouldered by PhilHealth.

Poor patients will now be operated on faster because of hospital efficiency. At present, patients at the old POC stay an average of 22 days in the hospital. In a world class and efficient facility, the average hospital turnover will be reduced to 4 to 5 days only. Thus, four times more poor patients can be served in the new hospital.

Why are some groups opposing?

The main reason for the opposition to the new POC is the fear of losing jobs. The DOH has repeatedly assured the thousands of POC employees that no one will lose their jobs.

However, DOH Secretary Enrique Ona explains that the employees will have three options. One, they can continue working as government employees in the new Philippine Rehabilitation Center (where the old POC is located). Two, for those of a certain age, they can opt for early retirement. Third, they can apply for a position in the new POC.

It is foremost in the DOH’s goal that poor patients will be guaranteed medical services and will not be turned away.

Secretary Ona says, “We have learned the lessons of PPP in other countries. We have studied this contract meticulously to ensure that the poor will not be disadvantaged. If we don’t go into this PPP project, I see no way for the POC to be modernized in the next 15 to 20 years. Are we willing to wait for that time and let our patients continue to suffer?”

In 25 years, the PPP contract will expire and the modernized POC will be returned to the government. By that time, in the year 2039, the government will have the option to continue the contract, or to manage it as a fully government-run facility.

“I believe that in 25 years, thousands of Filipinos would already have benefitted from the new POC. I will not be around to witness it anymore. But I want to assure everybody that I have tried my best, with the resources we have, to improve the delivery of health services for our people,” says the DOH Secretary.

 

22 February 2014

By Dr. Willie T. Ong