2004 Philippine National Health Accounts (PNHA)

Health Expenditure Total health expenditure grew by 6.2% in 2004 The total health expenditure of the country reached P165.2 billion in 2004, indicating an 11.2 percent annual increase from a 14-year high of 25.3 percent growth registered in 2003 at current prices. In real terms, total health expenditure increased to P41.3 billion from P38.9 billion the previous year, which translates to a 6.2 percent growth.
STATISTICS Total Health Expenditure (in billion pesos, at current prices) Health Expenditure Growth Rate (%) at current prices Total Health Expenditure (in billion pesos, at 1985 prices) Health Expenditure Growth Rate (%) at 1985 prices 2003 1/ 148.6 25.3 38.9 18.2 2004 165.2 11.2 41.3 6.2

1/ revised Source: National Statistical Coordination Board

Per capita health spending also increases With the total health expenditure growth surpassing the population growth, per capita health spending at current prices was P162 higher, from P1,817 in 2003 to P1,979 in 2004. Health expenditure per capita at constant prices showed a P19 increase or 4.0 percent from last years P475 to this years P494.
STATISTICS
Health Expenditure Per Capita (in pesos, at current prices) Health Expenditure Per Capita (in pesos, at 1985 prices) Population (million) Population Growth Rate (%)

2003
1,817 475 81.8 2.1

2004
1,979 494 83.5 2.1

2005 Philippine National Health Accounts (PNHA)

Executive Summary The results of the 2005 PNHA reveal the following:

Total health expenditure up by 9.4 percent in 2005

The total health expenditure in the country went up by 9.4 percent in 2005, from P165.3 billion in 2004 to P180.8 billion in 2005. This could largely be attributed to the increase in health benefit payments from social insurance, such as the Employees Compensation and the PhilHealth. Compared with the previous year, the growth in 2005 was slower than the 11.9 percent increase in 2004.

Per capita health spending increases

With the total health expenditure growing faster than the population, per capita health spending went up by P142, from P1,978 in 2004 to P2,120 in 2005 or a 7.2 percent increase.

Share of health expenditure to GDP goes down

The share of health expenditure to GDP was lower at 3.3 percent in 2005 compared to previous years 3.4 percent. It is still below the 5 percent standard set by the World Health Organization (WHO) for developing countries. On the other hand, the share of health expenditure to GNP remained at 3.1 percent which is within the National Objectives for Health (NOH) target of 3-4 percent.

Health benefit payments from social insurance exhibit the highest growth

Health benefit payments from social insurance showed the highest growth rate at 24.9 percent or a P4.0 billion increase in 2005. This resulted from the big hike in payments from Employees' Compensation at 42.4 percent and PhilHealth at 24.4 percent.

Government health spending remains far from the HSRA target

The share of government on health expenditure declined to 29 percent which is below the target of 40 percent based on the Health Sector Reform Agenda (HSRA). Also, the government's target to depend less on out-of-pocket payments and provide more social health insurance is still far from being realized as the share of out-of-pocket payments even increased to 49 percent while the share of social insurance payments increased only slightly to 11 percent in 2005. Based on the HSRA, the target for out-of-pocket is 20 percent while the target for social insurance is 30 percent.

2005 Philippine National Health Accounts (PNHA)

Government Expenditure on Health Loans register the highest growth in national government health expenditure Total national government health expenditure registered a 10.1 percent growth, from P26.0 billion in 2004 to P28.6 billion in 2005. This was largely due to the 199.0 and 43.0 percent increases in loans and health expenditure of other national agencies, repectively. Declines were, however, noted in expenditure of DOH agencies and grants at 10.8 percent and 45.3 percent, respectively. The increase in loans was attributed to the following projects of the DOH: Help for Catubig Agricultural Advancement Project Stage I, Health Sector Development Program, Rural Water Supply and Sanitation Project Phase V, and LGU Urban Water and Sanitation Project. The DOH agencies continued to provide the bulk of health expenditure, funding 48.0 percent of the national government expenditure for health care, despite a negative growth of 10.8 percent from the previous year.

DETAILS OF NATIONAL GOVERNMENT HEALTH EXPENDITURE 2004-2005

AMOUNT (in million pesos) YEAR

PERCENT SHARE

DOH and its Attached Agencies

Other National Agencies

Loans

Grants

Total

DOH and its Attached Agencies

Other National Agencies

Loans

Grants

20041/

15,425.2

4,256.1

2,183.7

4,154.3

26,019.3

59.3

16.4

8.4

16.0

2005 20042005 Growth Rate

1/

13,764.5

6,086.4

6,529.8

2,270.8

28,651.4

48.0

21.2

22.8

7.9

(10.8)

43.0

199.0

(45.3)

10.1

revised

Spending of DOH agencies exhibits negative growth Spending of DOH and its attached agencies decreased by 10.8 percent, from P15.4 billion in 2004 to P13.8 billion in 2005. Spending on public health care increased by 16.8 percent while spending on personal health care and other services exhibited declines of 13.4 percent and 19.8 percent, respectively.

Expenditure of DOH Agencies by Use of Funds

AMOUNT (in million pesos) Personal 10,204.7 8,833.8 (13.4) Public 2,034.8 2,375.8 16.8 Others 3,185.7 2,554.9 (19.8) TOTAL 15,425.2 13,764.5 (10.8) PERCENT SHARE Personal 66.2 64.2 Public 13.2 17.3 Others 20.7 18.6

Year 2004 2005 2004-2005 Growth Rate

1/

1/ Revised Note: DOH agencies are the Office of the Secretary - DOH, Dangerous Drugs Board, Lung Center of the Philippines, National Kidney and Transplant Institute, Philippine Children's Medical Center, Philippine Heart Center, and Population Commission

Government health spending remains far from the HSRA target The share of government on health expenditure declined to 29 percent which is below the target of 40 percent based on the Health Sector Reform Agenda (HSRA). Also, the government's target to depend less on out-of-pocket payments and provide more social health insurance is still far from being realized as the share of out-of-pocket payments even increased to 49 percent while the share of social insurance payments increased only slightly to 11 percent in 2005. Based on the HSRA, the target for out-of-pocket is 20 percent while the target for social insurance is 30 percent.

SOURCE OF FUNDS TOTAL BY USE GOVERNMENT USE OF FUNDS Actual Target 2004 2005 Target 2004 2005 SOCIAL INSURANCE Actual PRIVATE SECTOR Out of Pocket Others Actual Target 2004 2005

Targe t

Actual
2004 2005

Targe t

Actual
2004 2005

(in percent)
Personal Health Care Public Health Care Others TOTAL BY SOURCE 10 13 12 25 8 10 20 47 49 7 9 8 62 79 79

20

10

11

20

10

11

10

18

11

10

40

31

29

30

10

11

20

47

49

10

12

11

100

100

100

Note: To allow for comparison with HSRA targets, the percentage distribution of actual expediture by source of funds was adjusted by excluding the "other sources." Others under private sector include private insurance, HMOs, employer-based plans and private schools. As such, this is not exactly the same as the percentage share in table 2.5 on page 14.

Health expenditure from local government decreases Local government spending on health declined by 6.1 percent or around P1.5 billion in 2005. Declines were noted in all the uses of fund - personal health care, public health care and other services. Expenditure on public health care remained the largest share of local government expenses on health at 46.5 percent.

Local Government Health Expenditure by Use of Fund

AMOUNT (in million pesos) YEAR Personal Public Others TOTAL

PERCENT SHARE

Personal

Public

Others

2004

1/

6,310.3

11,192.7

7,269.3

24,772.3

25.5

45.2

29.3

2005 2004-2005 Growth Rate

6,008.3

10,819.0

6,443.2

23,270.6

25.8

46.5

27.7

(4.8)

(3.3)

(11.4)

(6.1)

2005 to 2007 Philippine National Health Accounts (PNHA)

Total Health Expenditure

Total Health Expenditure, 2005 to 2007

ITEM

2005

2006

2007

Average Annual Growth Rate, 2005-2007

Total Health Expenditure (in million pesos, at currentprices)

198,398

216,413

234,321

Total Health Expenditure Growth Rate (in percent, at current prices)

9.1

8.3

8.7

Total Health Expenditure (in million pesos, at constant 1985 prices) 2

47,418

49,586

51,564

Total Health Expenditure Growth Rate (in percent, at constant 1985 prices)

4.6

4.0