In a planned "surgical move" to remedy the problem of corruption in the state firm, President Duterte announced Monday, Sept. 28, that he would propose to Congress the abolition of the Philippine Health Insurance Corporation (PhilHealth).
The President, in a televised address Monday night, admitted that he prefers the replacement of PhilHealth with a new agency over the privatization of the state corporation.
"Itong PhilHealth, I am going to propose to Congress to abolish the… Kung i-privatize mo naman, susmaryosep, walang pera. Sino insurance mo…? Huwag mo sabihin ng mga kapitalista sa insurance: Kami ang magbayad? Wala kayong pondo (On PhilHealth, I am going to propose to Congress to abolish it. If you privatize it, my goodness, there's no money. Insurance capitalists will ask us: We will pay? But you don't have funds')," he said.
Duterte admitted that the government has resorted to selling real estate properties in Japan precisely to raise funds.
"Wala nang pambayad ‘yang sa PhilHealth na ‘yan kung… Kaya walang ibang remedy diyan. It must be a surgical move. Talagang… Kung hindi, paalisin ko sans the itong mga civil-civil service, create a new agency out of that --- out of the ruins of that old one (PhilHealth has no more funds. So there is no other remedy but to.. it must be a surgical move. If not, I will remove sans those civil servants, I will create a new agency out of the ruins of that old one)," he said.
Duterte also said he intends to implement a "revamp" of PhilHealth and "consider everybody resigned." He told Health Secretary Francisco Duque III, who was present in the meeting with officials, that nothing will happen if the current PhilHealth setup is retained.
"Hiindi na puwede, Secretary Duque. Hindi na puwede na itong mga tao na ito they are already entrenched na. Wala, walang mangyari (It is no longer possible, Secretary Duque. It is not possible since these people, they are already entrenched. Nothing will happen)," he said.
"Talagang either I’m going to revamp, consider everybody resigned there and if there’s the structure, we can slowly… And ‘yung i-disband ‘yung ibang ano (Either I'm going to revamp, consider everybody resined there and if there's a structure, we can slowly disband the others). Just a simple --- I mean as simple as it could ever be. That’s what I mean," he added.
Prior to his comments about dismantling PhilHealth, Duterte initially mentioned his plans to "reorganize" the state health insurer. He said he will try "shaking the tree" in PhilHealth by Tuesday.
"I will try to begin tomorrow shaking the tree sa PhilHealth. Balak ko mag-reorganize and impose upon them a single line of authority," he said.
"There are so many tables there in an office, hindi lang PhilHealth, na who can do the work, who can process the papers without really having a discretion whether or not he should be hanging on it, he’s sitting on it," he added.
The President's planned reforms for PhilHealth came a week after endorsing the filing of administrative and criminal complaints against several high ranking officials over alleged anomalies in the state firm.
An inter-agency task force led by the Department of Justice earlier completed an initial investigation into PHilHealth and found that certain officials allegedly committed negligence in the discharge of their duties, particularly on the disbursement of Interim Reimbursement Mechanism given to hospitals as well as the procurement of information technology equipment.
The task force has recommended filing of complaints for offenses such as graft, malversation of public funds, tax violations, gross neglect of duty and falsification of documents.