The Philippine Red Cross said it would stop conducting COVID-19 tests funded by Philippine Health Insurance Corporation (PhilHealth) because of the state insurer’s “ever-increasing outstanding balance.”
“We are constrained to cease conducting tests chargeable to PhilHealth effective today, 14 October 2020. We shall complete the testing of all specimens submitted to the PRC up to 11:59PM today,” the PRC said in a statement dated October 14.
Starting today, October 15, Red Cross would no longer process COVID-19 tests of those listed in the Department of Health’s expanded testing guidelines (DOH) per its memorandum no. 2020-0258-A, including overseas Filipino workers, individuals through the mega swabbing facilities and local government units, frontline health and government workers, and those arriving in airports and seaports.
According to Philippine Red Cross, PhilHealth needs to pay its overdue balance of P930,993,000 before they resume their service.
“The PRC entered into an agreement with PhilHealth for the latter to reimburse the PRC for these priority tests requested by various government agencies,” it said.
PhilHealth owes Philippine Red Cross almost P931 million
“Unfortunately, PhilHealth failed to meet its obligations. As a result, the total billings sent by the PRC to PhilHealth stand at P1,014,975,500.00 as of October 13, 2020. Of this amount, P930,993,000.00 represents overdue amounts.”
PRC revealed PhilHealth’s last payment to PRC was made on September 8, but “not a single centavo has been paid since then.”
Meanwhile, the PRC said it would continue to conduct COVID-19 tests that were not charged to PhilHealth such as those who booked through its 1158 helpline or via online, private companies and organizations, and local government units and other government agencies with laboratory testing contracts with the PRC and whose payments are up to date.
“This is a difficult decision for a humanitarian organization such as the PRC to make, but it has to be made,” it said.
“The PRC does not have unlimited resources to replenish the testing kits for its laboratories unless PhilHealth, its major creditor, settles its lawful obligations to the PRC,” it added.
According to PRC and PhilHealth’s memorandum of agreement, Red Cross said a revolving fund of P100 million was supposed to be replenished immediately after being used.
“PhilHealth never replenished this revolving fund. In fact, it is now PRC advancing its funds for testing services as a result of the non-payment of PhilHealth,” PRC said.
