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The Country's Health Care Spending Continues to Remain Inadequate
FS#8 Series of 2001

The country’s total annual health expenditure grew at an average annual growth rate of 14.8 percent, from P35.9 billion in 1991 to P108.3 billion in 1999.  At constant 1985 prices, the average growth rate was 6.4 percent per year.  However, health spending remains insufficient.  Although its share to GNP rose from 2.9 percent in 1991 to 3.4 percent in 1999, it is still below the 5 percent standard set by the World Health Organization (WHO) for developing countries.  Moreover, the share had remained practically unchanged during the last five years.

Chart

Per capita health expenditure at current prices stood at P1,449 in 1999 of which P549 came from government, P70 from social insurance and P829 from private sources.  Much is still to be done in shifting the burden of health financing to social insurance to achieve the 30 percent target share given its current share of 5 percent.  With a 46 percent share of out-of-pocket spending to total health spending, the financial burden on individual families remains heavy, leaving access to care highly inequitable.  With the sustained dominance of out-of-pocket spending, personal health care services continued to receive the biggest allocation as households tend to put greater priority on services that directly benefit its members.  Its share continued to remain above the 70 percent level during the nine-year period.

SELECTED HEALTH ACCOUNTS STATISTICS 
AND INDICATORS 1997 - 1999

STATISTICS 1997 1998 1999 Average Annual Growth Rate
(91-99)
Total Health Expenditure (in million pesos,  at current prices)

87,078

95,662 108,300 14.8
Total Health Expenditure (in million pesos, at 1985 prices) 32,236 32,283 34,294 6.4
Share of Health Expenditure to GNP (%) 3.44 3.40 3.43  
Health Expenditure Per Capita (in pesos, at current prices) 1,217 1,308 1,449 12.3
Health Expenditure Per Capita (in pesos, at 1985 prices) 451 441 459 4.0
       
Percentage share to total health expenditure by source of fund
Government 38.30 38.65 37.91  
   National 20.52 20.53 20.04  
   Local 17.78 18.13 17.87  
Social Insurance 5.13 3.74 4.86  
   Medicare 4.87 3.46 4.61  
   Employees' Compensation 0.26 0.27 0.25  
Private Sources 56.58 57.61 57.23  
   Out-of-Pocket 46.88 47.96 46.26  
   Private Insurance 1.94 1.98 2.14  
   HMOs 2.50 2.88 3.84  
   Employer-based Plans 4.42 3.95 4.01  
   Private Schools 0.84 0.85 0.99  
       
Percentage share to total health expenditure by use of fund
Personal 74.44 76.30 76.33  
Public 13.51 13.09 12.30  
Others 12.05 10.61 11.37  

Source: National Statistical Coordination Board

 

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1997-2008, National Statistical Coordination Board
Makati City, Philippines