Press Release
September 16, 2009

LOREN APPEALS TO HOSPITALS NOT TO RAISE FEES

Sen. Loren Legarda yesterday appealed to owners of private hospitals not to increase their fees for hospital services "to show your compassion for the thousands of who seek hospitalization during this time of crisis and escalating poverty."

Loren, who is the chair of the Senate committee on Health and Demography, issued the call after Dr. Rustico Jimenez, president of the Private Hospitals Association of the Philippines (PHAP), said that its members may have to increase their fees to recoup their losses from the 50 percent cut in the price of medicines resulting from the government's maximum drug retail price policy.

Loren reminded PHAP of the nature of their industry which is impressed with utmost national interest, thus she advised them to "seek the help of the Department of Health for possible solutions to prevent them from increasing their fees such as getting a rebate from the drug corporations from which they purchase their medicines affected by the government's drug policy."

Loren backed the stand of Health Secretary Francisco Duque III that private hospitals should first show that they are really losing from the government's cut price policy for some drugs before they should increase their hospital fees.

"The hospital patients, most of whom come from the lower income groups, are already overburdened by the current high costs of hospital care and services, as well as the high cost of medicines, that to increase their fees would be cruel and unfeeling."

According to Loren, "retailers also should not bear the brunt of the medicine price deduction decreed by the government since they only have marginal profits from their sales, while it is the big drug corporations that are making enormous profits from the wholesale price of drugs."

Noticing THAT some drug retailers have been caught selling drugs affected by the government order at the same prices as before, Loren urged the DOH to conduct an intensive information drive targeting drug retailers on the real price to be charged for the affected medicines.

Loren said that the DOH should not wait for the drug retailers to contact them for a price listing of the affected drugs. "The DOH itself should print an official listing of the drug prices and post them on pharmaceutical shops for the information of both the retailers and the public."

Loren said that in this way the retailers cannot give the excuse that they are not aware of the government dictated prices on the medicines they sell. The public could also easily point to the DOH-released drug price list to ensure that they pay the correct price.

"In these times when most of our people are suffering from the economic recession, millions are out of jobs, and more millions suffering from inadequate income, it would be cruel and insensitive to overcharge our sick and the hospital patients," said Loren.

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