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PhilHealth suspends its controversial Interim Reimbursement Mechanism

Published Aug 13, 2020 10:18 pm

The Philippine Health Insurance Corporation (PhilHealth) announced on Thursday the suspension of its cash advance system for hospitals amid the ongoing investigation on alleged irregularities in the agency. 

The state health insurer said that it has put on hold its Interim Reimbursement Mechanism (IRM) to conduct an evaluation on the system. 

“PhilHealth announced the suspension of the Interim Reimbursement Mechanism (IRM)  to review its overall implementation and resolve issues arising from Congressional inquiries,” the insurance firm said. 

“PhilHealth vowed to find ways to make the IRM more responsive to the needs of healthcare facilities affected by the current pandemic to assure patients of continuous access to needed health services,” it added. 

To note, the IRM or “emergency cash advance” was being used by the agency to assist  health care institutions (HCIs) in case of “fortuitous event” such as the coronavirus disease pandemic.

The implementation of the IRM has been criticized recently during the Senate hearings as there were allegations of favoritism in the distribution of funds to the medical facilities.  

Some senators on Wednesday, August 12, said that PhilHealth’s cash advance system should be suspended until the necessary reforms are put in place. 

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