UST Hospital retrenches workers due to financial losses amid COVID-19 pandemic

The University of Santo Tomas Hospital (USTH) has reduced its manpower to minimize its expenses and financial losses, amid the coronavirus disease 2019 (COVID-19) pandemic.

In a statement, hospital medical director Dr. Marcellus Ramirez said that since the start of the pandemic, the overall hospital census went “significantly down” because most of the patients admitted were COVID-19 patients.

“While the news around significantly highlights the health and medical impact of the pandemic, the huge economic and financial impact brought about by this crisis to all business establishments, most especially to healthcare institutions, is often overlooked,” Ramirez said.

“The huge cost brought about by our contingency measures to address the demands of the pandemic, which included cancellation of elective procedures and admissions to give way to the intensive care of COVID patients, as well as the tremendous impact on our patient census, is taking a very serious toll on the hospital’s sustainability,” he added.

Ramirez said state insurer Philippine Health Insurance Corp. (PhilHealth) owed USTH over P180 million in expenses for patients in 2019.

But despite it, the hospital continued to operate and paid utilities, services, medications and supplies needed for patients and salaries of employees, who are mostly on leave.

“Many of the employees also could not come to the hospital because of limited transportation while others filed for unused leaves. There were even some who were not allowed by their parents and family members to report for work,” he said.

He also said the hospital has “no idea” when its operations will be back to normal and that it is “uncertain” if it can fully operate within the year.

“The new normal, as it is called and which we are gradually transitioning into, will not be an assurance that the hospital’s current manpower will still be the number needed to operate it. Painful decisions were needed to be made.”

Ramirez said the retrenchment plan “was reviewed in detail by our Legal Counsel and after we have complied with all legal requirements for the same, such as the notification to the Department of Labor and Employment (DOLE) and the 30-day notice to the affected employees.”

“We first implemented non-renewal of fixed term contracts and recently, retrenchment, which, based on our collective bargaining agreement (CBA), would be based on the principle of last in first out,” he said.

He also underscored that the retrenchment was a “recognized valid and legal management measure and it remains as such even during the COVID-19 crisis.”

Ramirez added employees affected by the retrenchment measures will receive 150 percent separation pay based on the hospital’s CBA, which is 50 percent higher than what the Labor Code provides.

In late March, University of the Philippines Executive Vice President Teodoro Herbosa said private hospitals in the country were allegedly struggling to respond to the COVID-19 pandemic as they were running out of funds due to the failure of PhilHealth to pay its arrears.

Meanwhile, Private Hospitals Association of the Philippines Inc. (PHAPI) President Rustico Jimenez confirmed that PhilHealth had not been paying hospitals’ claims on time.

Jimenez added that PhilHealth had around P4 billion to P5 billion in payables to private hospitals. — LA, GMA News