Hospitals and Health Systems Upgrading in the Province of Misamis Oriental, Philippines

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  • Topic: Cagayan de Oro City, Tax, Misamis Oriental
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  • Published : April 24, 2013
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Public Finance
Professor: Hideaki Tanaka
Catiil, Mark Anthony Amarga

Hospitals and Health Systems Upgrading in the Province of Misamis Oriental, Philippines

Introduction

Under the administration of Governor Oscar S. Moreno, there are eight-point agenda being laid down in the Province of Misamis Oriental since 2004. The agenda include poverty alleviation, revenue generation, investment in infrastructure, MISORTEL resuscitation, education and environment protection and development, hospitals and health systems upgrading, agricultural productivity and teamwork and streamlined bureaucracy (www.provinceofmisamisoriental.com). Among the eight agenda, I will focus on hospitals and health systems upgrading since I work under the Provincial Health Office (PHO) which is the lead office in managing and promoting health care services in the province. This paper will specifically discuss on how the present administration deal with financing, allocation and spending of budget in order to achieve the agendum on hospital and health systems upgrading until end of the governor’s term which is May 2013. Is there any significant effect on poverty reduction and growth? Problems encountered along the way will be discussed also especially that health sector has been given the highest priority by this administration. Prior to a keen discussion on the issue, I will give you a comprehensive background of the province (www.provinceofmisamisoriental.com). Misamis Oriental is one of the five (5) provinces of Northern Mindanao and situated along the north Coast of Mindanao Island. It is bounded on the east by Agusan del Norte, on the west by Iligan Bay, on the north by Macajalar Bay and on the south by Bukidnon and Lanao del Norte. Cagayan de Oro is the capital city where the Provincial Capitol Building is situated. The province has a total land area of three thousand five hundred seventy and point zero one (3,570.01) square kilometers. It has a total population of one million three hundred two thousand eight hundred fifty one (1,302,851) based on 2007 census. It is composed of twenty three (23) municipalities and two (2) component cities.

Issues and Solutions

Based on our Local Government Code of 1991, local government units are given more powers, authority, responsibilities and resources by way of decentralization system. Basically, the province generates funds mainly from taxation on real estate and income from hospitals. Apart from that the province also receives Internal Revenue Allotment (IRA) from the National Government which is computed 40% of all internal revenue taxes collected three years prior (www.dbm.gov.ph). The bulk of this revenue will be spent on Personal Services (salaries and allowances of employees) and interest payment (debt burden). The rest will be taken from outsourcing activities. So how did the province allocate the budget in order to attain its objective on hospital and health systems upgrading? PHO has been given the authority to manage the seven (7) provincial hospitals which include Misamis Oriental Provincial Hospitals (MisOrPHs) - Manticao, Initao, Claveria, Balingasag, Talisayan, Gingoog and Magsaysay. In September 2007, the province created a special office, Hospital Operations Office, to oversee the needs of the hospitals mainly systems installations, human resource development, infrastructure and facilities upgrading, drugs and medicines availability and income generation. MisOrPHs are consistently generating more income than the rest of the offices of the province and should get the bigger slice of the budget each fiscal year but it is ironic to say that they receive less. How did the province finance the infrastructure and systems upgrading of the seven MisOrPHs? Foreign Aids, Bank loans, Collaboration and Public Private Partnership (PPP) are the major solutions for this problem. It is good to note that our province has been permitted to borrow money from big government...
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