The country’s total health expenditure showed improvements from 2005 to 2007, but at decelerating growth rates both at current and constant prices.  At current prices, the total outlay for health went up from PHP198.4 billion in 2005 to PHP234.3 billion in 2007, registering a growth rate of 9.1 percent in 2006 and 8.3 percent in 2007.

Discounting the effect of inflation, total health expenditure grew at only 4.6 percent in 2006 and even slower at 4.0 percent the following year.  When considered on a per capita basis, these growth rates translate to miniscule increases in per capita health spending of PHP14 in 2006 and PHP11 in 2007!

These are among the highlights noted in the 2005-2007 preliminary estimates of the Philippine National Health Accounts (PNHA) released by the National Statistical Coordination Board (NSCB).  Other salient patterns and trends observed from the new PNHA updates are the following:

• The level of health expenditure in 2005 to 2007 was within the target of 3 to 4 percent of GNP set as part of the National Objectives for Health 2005-2010.  However, the ratio exhibited a decreasing trend from 3.4 percent in 2005 to 3.2 percent in 2007.

• Pinoy households continued to bear the heaviest burden in terms of spending for their health needs as private out-of-pocket surpassed the 50 percent mark in health expenditure share in 2006, reaching 54.3 percent in 2007.  Private households thus contributed an estimated PHP97.6 billion to the total health expenditure in 2005 and PHP127.3 billion in 2007.

• Government came in a far second in health spending contribution, with the national government and the local government units (LGUs) footing almost equal shares of 13.0 percent and 13.3 percent in 2007, respectively.  It is worth noting that the LGUs spent more than the national government in 2006 and 2007. Total government expenditure on health care goods and services increased from PHP58.5 billion in 2005 to PHP61.5 billion in 2007, registering an annual growth of only 2.6 percent.

• Health expenditure from social insurance barely grew from PHP19.4 billion in 2005 to nearly PHP20.0 billion in 2007, indicating an average annual growth of only 1.6 percent.  Thus, instead of picking up as targeted, the social insurance share in health spending went down from 9.8 percent in 2005 to only 8.5 two years later.

The PNHA presents information on how much is spent on health care goods and services and who is paying for these goods and services. This information is useful in analyzing the appropriateness of the levels, composition, and structure of health expenditures, especially those of the government. The data can also help determine whether the aggregate health care spending from all sources, that is, the government, the social insurance sector, the private sector, and the rest of the world, is adequate to meet minimum requirements and identify probable areas of inefficiencies in allocating health care resources.

The 2005-2007 preliminary estimates were computed based on the revised PNHA estimation methodologies developed by the NSCB Technical Staff following an extensive review of the sectoral data inputs and computation procedures. The revised estimation methodologies have been presented in three multisectoral forums and will be presented to the NSCB Executive Board in November 2010 for approval. The final PNHA estimates for 2000-2007 and updates for 2008 will be released by the end of the year.

ROMULO A. VIROLA
Secretary General

Contact Persons:

Ms. Didi M. Ignacio and Ms. Racquel Dolores V. Sabeñano
Social Sectors A Division
Tel. No.: (+632) 890-9678

E-mail: rm.ignacio@nscb.gov.ph and rdv.sabenano@nscb.gov.ph

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