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Hospitals back down on planned price hikes

PRESIDENT Gloria Arroyo said private hospitals will no longer increase their fees following an agreement with health authorities.

Health Undersecretary Alex Padilla succeeded in persuading hospital administrators to forgo the increase in return for discounts from drug manufacturers, Mrs. Arroyo told the Manila Broadcasting Co..

Private hospitals had warned the public of the increase, saying they needed to recoup their losses arising from the implementation of the Cheaper Medicines Law.

Reacting to the warning, Health Secretary Francisco Duque III challenged private hospitals to open their books to back their claims that they would lose money because they still had huge inventories of medicines bought before prices were lowered.

On Aug. 15, the government implemented a 50-percent reduction in the prices of selected medicines and a 10-to 50-percent price cut on other drugs through the government-mediated access price program.

The program was implemented on Sept. 15, but hospitals said they would lose money if they were required to sell their inventory at the reduced prices.

Earlier this week, the Palace also warned private hospitals that the government would be more strict in renewing their licenses and accreditation if they pushed through with their plan to raise their fees.

“But it doesn’t have to reach that point,” said deputy presidential spokesman Lorelei Fajardo in a press briefing. “We can resolve that by talking things out.”

Padilla later reported fruitful meetings with the Private Hospitals Association of the Philippines and the association of drugstore owners on Wednesday. PNA

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