TP Provides Proof that PhilHealth is Drying Up and Nearing Bankruptcy

Thinking Pinoy, the popular social media personality who is known for being a blogger whose expose caught the netizens attentions by dropping names who were connected with the previous Aquino administration in various anomalous deals. TP also exposed that PhilHealth funds is already drying up and nearing bankruptcy.

According to Thinking Pinoy, last March 10, 2016, PhilHealth board member Eddie Dorotan said the company may go bankrupt by the end of the year as claims payments exceed members' contributions and income (Bicol Today).

The statement of Dorotan was contradicted by PhilHealth President and CEO Alexander Padilla, arguing that PhilHealth's "reserve funds has been growing steadily from about P112 billion in 2012 to P128 billion in 2015 (CNN)."

Despite the denial of the PhilHealth's officials on their drying reserve funds, Thinking Pinoy through sources within PhilHealth, obtained copies of PhilHealth board presentations that detailed the true financial position of the government corporation.

Based upon the documents gathered by TP, PhilHealth CEO Padilla failed to disclose the amoount that PhilHealth pays out, which would have put the reserve amount into perspective. That is, P128 billion in reserves appears to be a very large amount, but it's easily overwhelmed by the exponential growth of claims payments compared to the linear (and plateauing growth of premium collections).

Moreover, while it's true that PhilHealth's reserve funds is increasing, much of it is not liquid enough to address immediate financial needs. That is, readily available reserve funds are dwindling and are projected to dwindle further, as PhilHealth posts massive operating losses every year.

Theres also an impending bankruptcy for PhilHealth, in the February 11, 2016 presentation "PhilHealth: Plugging the Holes," PhilHealth Independent Anthony Leachon cited Fund Balance Projections as valuated in 2012, 2013 and 2014. Screenshots of these projections are shown below:

Source: Thinking Pinoy

TP Provides Proof that PhilHealth is Drying Up and Nearing Bankruptcy TP Provides Proof that PhilHealth is Drying Up and Nearing Bankruptcy Reviewed by Phil Newsome on December 31, 2017 Rating: 5
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