Senator Panfilo M. Lacson on Tuesday said the state-run Philippine Insurance Health Corporation (PhilHealth) is a murky, stinking multi-billion-peso swamp that many of its good and well-meaning people from the officials to their rank-and-file employees want drained.
‘’Some PhilHealth corrupt but well-entrenched officials do not seem to run out of malevolent schemes to enrich themselves, but of a deeply rooted, Mafia-like syndicate that controls the resources of the corporation, and habitually manipulate its financial records, that even the COA (Commission on Audit) seems helpless in the conduct of their regular audit,’’ Lacson said in his speech at the start of the Senate Committee of the Whole public hearing on the alleged widespread corruption at PhilHealth.
The hearing, in aid of legislation, was triggered by resolutions of Senate President Vicente C. Sotto III and Senators Lacson, Francis N. Pangilinan, and Leila de Lima. Both Pangilinan and de Lima are members of the Senate minority bloc.
Art the start of the hearing, Senate Minority Leader Franklin M. Drilon wanted to know from PhilHealth officials, led by Ricardo Morales, PhilHealth president and chief executive officer (CEO), how much of the P220 billion assets of the state’s premier health agency is left following an alleged pattern of corruption.
The country’s association of private hospitals reportedly have a pending reimbursement request amounting to close to P3 billion that remains unpaid by PhilHealth.
Lacson’s disclosure of questionable reimbursements by PhilHealth of about P400 million to two unaccredited hospitals in the Bicol region and eastern Bicol for supposed expenses for COVID-19 patients led to the Senate probe.
One of the two hospitals only had one COVID-19 patient. One request for reimbursement was favorably acted upon in one week while the other was acted upon in two weeks.
What irritated Lacson was that a request by a high-profile hospital in Quezon city for tens of millions of reimbursement has not been acted upon.
Parts of Lacson’s speech follow:
“If we look closely enough, the story only revolves around the same cast of characters – a circle of high-ranking officials who manage to hog their seats despite the change of leadership and detailed anomalies that we already unearthed in the past.
“Allow me to remind you, distinguished colleagues:
Atty. Rodolfo “Jojo” del Rosario, now Senior Vice President of Legal Sector, had been involved in a myriad of issues: as the signatory in the obvious “conflict of interest” in the building lease contract between the Duque-owned Educational and Medical Development Corporation (EMDC) and PhilHealth for the latter’s office building in Region 1; likewise as the OIC of the IT Management Department when the multi-million PhilHealth premium contributions of Accenture, Inc. were allegedly plundered in 2012; and the two successive Zero Performance Ratings of the Governance Commission for GOCCs (GCG) in the Legal Sector.
Dr. Israel “Ish” Fargas, the SVP for Health Finance Policy Sector; and Corporate Secretary Jonathan Mangaoang, who stirred the allegations of PhilHealth Board’s grave abuse of discretion by reversing the Court of Appeals’ final and executory judgment of Perpetual Succour Hospital’s three-month suspension and P10,000 fine.
Dr. Fargas also turned a blind eye to the notorious and untenable policy called All Case Rate or ACR Payment Scheme of PhilHealth which cost PhilHealth massive losses to overpayment and fraud:
Mr. Dennis Mas, SVP for Management Services Sector, was charged by the Ombudsman for his involvement in the POEA fake receipt scam. Mr. Mas also deliberately failed to disclose the undesirable record of the five recently promoted PhilHealth personnel despite their involvement in big-time scams.
Just for the last five years – 2014 to 2018 – as the 2019 report is not yet available on the COA website, I would like to share with you, my distinguished colleagues, the following:
* As of December 31, 2018 - Disallowances: P6.64 Billion
* As of December 31, 2017 - Disallowances: P6.12 Billion
* As of December 31, 2016 - Disallowances: P5.08 Billion
* As of December 31, 2015 - Disallowances: P5.02 Billion
* As of December 31, 2014 - Disallowances: P3.98 Billion.
“Notice PhilHealth’s recurring pattern of violations of auditing rules in terms of suspensions, disallowances and charges. Today, even in the middle of a global pandemic, PhilHealth continues to face a train of anomalies, this time involving three major issues we are tackling today:
1. PhilHealth’s overpriced ICT equipment;
2. Manipulation of PhilHealth’s financial statements; and
3. The highly irregular implementation of advanced payments to health care institutions through the Interim Reimbursement Mechanism policy, among other corrupt practices.
“We dare ask: Why would maternity care package providers and freestanding dialysis centers which do not even cater to COVID-19 patients receive COVID-19 advance payments from PhilHealth? You can see P226 million released to freestanding dialysis centers and P4.7 million released to package providers.
“To cite an example, five branches of a private freestanding dialysis center, Braun Avitum Dialysis Center Manila, recently received a total of P45,176,518 in a span of only a few days. Meanwhile, Ospital ng Maynila, a public hospital despite multiple appeals has yet to receive its PhilHealth fund reimbursement of a mere P19M.
“Suffice it to say Mr. President, this is the reason why we are gathered here yet again to conduct this inquiry not only in aid of legislation, but more importantly in aid of the more than 104 million members and dependents of PhilHealth, as well as all the taxpayers of this country.
“A renowned American author, Henry David Thoreau, once wrote: There are a thousand hacking at the branches of evil to one who is striking at the root. That is why we are grateful to have people like former PhilHealth Board Member Alejandro Cabading, former HEA to the PhilHealth president Col. Etrobal Laborte; and former anti-fraud officer Atty. Thorrsson Keith, who are with us today, albeit virtually.’’
Lacson stressed that the Senate will help them “hack the branches, and most compellingly, strike the root of the evil that besets PhilHealth.’’