COA flags DOH for more than P30M worth of expired medicines

The Commission on Audit (COA) flagged the Department of Health (DOH) after more than P30 million worth of drugs and medicines were found to be expired. 

According to Maki Pulido’s report in “24 Oras” on Thursday, COA’s annual audit report on DOH for 2024 showed that P34.8 million worth of drugs, medicines, and other inventories were found expired. Additionally, almost P100 million worth of medication is about to expire. 

“Drugs, medicines, and other inventories were found expired or nearly-expired with a total value of P34,825,702.20 and P99,461,477.71, respectively due to deficiencies in inventory management system that affected procurement planning, distribution and monitoring of inventories,” said COA. 

Regarding the nearly P100,000 worth of nearly-expired medicines, DOH spokesperson Albert Domingo said these could have been distributed already as they still have one more year before expiring when the audit was held. 

The Health official added that the department is already implementing an electronic logistics and management information system, but only 60% to 70% is working. 

“‘Yan sana ‘yung pinaka-computer program na magsasabi ilan ba ang binili natin. Nakarating na ba ito doon sa mga pasyente o mga tao na nangangailangan at ilan ang sobra?” said Domingo. 

(That’s supposed to be the main computer program that will tell us how many we bought. Did these reach the patients or the people who need them, and how many are in excess?) 

Among the expired items are the 19 million doses of COVID-19 vaccines. But the DOH official explained that they were an excess stock after several local government units purchased the same despite the advisory that the national government will be the one to purchase. 

The excess vaccine stock was still included in the audit as they have yet to be disposed of.

“Nung patapos na ang pandemic, ang daming gustong mag-donate, kasi ayaw ma-expire-an…Nag-landing lahat sa DOH,” said Domingo. 

(When the pandemic was ending, many wanted to donate [medicine], because they didn't want them to expire… They all landed with the DOH.) 

PhilHealth claims

Meanwhile, COA also warned that the operations of 13 DOH hospitals are in limbo due to over P1 billion claims from the state health insurer Philippine Health Corporation (PhilHealth). 

“Thirteen DOH-retained hospitals are encountering challenges in ensuring the accuracy and collectability of its claims totaling P1,05,422,417.35 from Philhealth,” state auditors said. 

“...comprising its denied and RTH claims amounting to P786,655,056.20 and P298,767,361.15 respectively, due to persistent non-compliance with PhilHealth claims processing guidelines,” COA added. 

The Health Dept. explained that hospitals are now once again allowed to file their claims after a discussion and resolution by the PhilHealth Board, which is chaired by the department. 

“PhilHealth will have more accurate numbers… lumiit na ‘yung bilang kasi even ‘yung financial statement ng PhilHealth tumaas ‘yung kanilang bayad,” said Domingo. 

(PhilHealth will have more accurate numbers… the number has shrunk because even the financial statement of PhilHealth shows that their payments increased.) 

The audit showed the risks that could affect PhilHealth’s operations.

Foremost is the return of P60 billion of PhilHealth funds to the national treasury. The amount should have been P89 billion but the Supreme Court issued a temporary restraining order for the remaining P29 billion. 

“The potential depletion of the Reserve Fund, resulting from the partial release of the amounts appropriated for PhilHealth for Fiscal Years (FYs) 2023 and 2024, and the zero subsidy for PhilHealth for FY 2025 under the General Appropriations Act, poses a significant risk to PhilHealth’s operations,” said COA. 

COA also pointed out the government’s subsidy for indirect contributors, or senior citizens, persons with disabilities, and indigent or poor people is insufficient. 

“In FY 2024, PhilHealth received only P9.307 billion-approximately 23 percent of the P40.283 billion appropriated - for the health insurance premiums of indirect contributors, including indigents under the NHTS, SCn, PWDs, and Point-of-Service (POS) patients. It is particularly concerning that no subsidy was received for SCn members.” the annual audit report read. 

COA also said PhilHealth did not receive an allocation in 2023 and in 2024 for the expansion of some benefit packages, such as the expanded dialysis and mental health packages. 

GMA Integrated News is trying to reach out to PhilHealth for comment. 

For its part, the DOH said that the state health insurer has enough reserved funds. It added that PhilHealth will receive P113 billion in subsidy under the 2026 national budget. 

“Malaki talaga ang reserba ng PhilHealth ngayon. Sa katunayan sa buong mundo ang health insurance systems ng gobyerno hindi dapat malaki ang reserba. In fact, pag nabasa natin yung nakalagay sa UHC law natin tsaka sa PhilHealth law not more than two years operational expenditure dalawang taon lang dapat ang tinatago,” said Domingo. 

(PhilHealth’s reserve is truly huge right now. In fact, globally, government health insurance systems should not have large reserves. In fact, if we read what is stated in our UHC Law and the PhilHealth Law, it should be not more than two years operational expenditure—only two years should be kept in reserve.) —Vince Angelo Ferreras/RF, GMA Integrated News