Duque denies 'palakasan' in IRM, says he has zero tolerance for corruption, fraud

Health Secretary Francisco Duque III on Tuesday denied a "palakasan" system in the release of funds of the Philippine Health Insurance Corp (PhilHealth), as he claimed he has zero tolerance for fraud and corruption.

In a Senate hearing, Duque — who chairs the PhilHealth board — said there is no "palakasan' in the interim reimbursement mechanism (IRM).

"On the allegations of 'palakasan' system on the release of the IRM, we assure you there is none," he told senators.

The IRM is a system where the PhilHealth pays hospitals and healthcare facilities in advance for insurance claims, to ensure that they could function in crises.

PhilHealth defines the IRM as "a special privilege for the provision of substantial aid to an eligible Health Care Institution (HCI) directly hit by fortuitous event with clear and apparent intent to continuously operate and/or rebuild the HCI in order to provide continuous health care services to adversely affected Filipinos."

Data released by the state insurer showed that Davao City-based Southern Philippines Medical Center got the highest amount of compensation so far from the latest IRM, with P326 million. It was followed by the UP-Philippine General Hospital with P263 million, and the Davao Regional Medical Center with P209 million.

The IRM has since been suspended by PhilHealth, amid issues hounding the payment system.

For his part, PhilHealth president and chief executive officer Ricardo Morales earlier denied outside influence in the release of funds under the IRM.

"IRM is not specific only to the COVID-19 pandemic as it is based on the provisions of the National Health Insurance Act and the Universal Health Care," Duque said Tuesday.

"My commitment to safeguarding the sustainability of the fund is very personal and I would like to state for the record that I am zero tolerance for fraud and corruption."

It was Duque's first appearance at the Senate hearing on PhilHealth, now on its third day.

Under its mandate, PhilHealth is tasked to administer the National Health Insurance Program, which aims to provide health insurance coverage and ensure affordable, acceptable, available and accessible health care services for all citizens of the Philippines.

PhilHealth and its officials are under investigation over the agency's alleged overpriced purchase of an information technology system worth over P2 billion.

In the previous Senate hearing, resigned anti-fraud officer Thorsson Montes Keith claimed that the PhilHealth "mafia," composed of the executive committee, stole some P15 billion through fraudulent schemes.

PhilHealth has since denied such claims. 

Amid the controversy surrounding the IRM, Duque said "rectify" the situation.

"We will rectify this," Duque said, when he was questioned why dialysis and maternity clinics were included in the IRM, which is supposed to cater only to "fortuitous events." —KBK, GMA News