Rising Healthcare Costs in the Philippines 

Published by HospitalNews.ph | April 2025

Filipinos are feeling the pinch—healthcare in the Philippines is becoming more expensive. From medicines and diagnostics to hospitalizations and professional fees, the rising costs are placing greater strain on both public and private healthcare systems, and more importantly, on Filipino families.

According to the Philippine Statistics Authority (PSA), the country’s total health expenditure rose by 10.4% in 2024, reaching ₱1.3 trillion, with out-of-pocket spending still accounting for over 45% of that total. Despite expanded PhilHealth coverage and universal health care efforts, the cost of care continues to rise faster than many households can afford.

What’s Driving the Rise?

Several factors are behind the steepening healthcare curve:

1. Inflation and Global Supply Chain Disruptions – The cost of medical equipment, supplies, and imported medicines remains high due to supply chain lags and inflation.

2. Private Sector Price Hikes – Private hospitals are adjusting rates to match increased operational costs such as electricity, staffing, and digital infrastructure.

3. Delayed Government Reimbursements – Some hospitals report delayed PhilHealth payments, forcing facilities to shift some costs back to patients.

4. Aging Population and Chronic Diseases – Non-communicable diseases such as diabetes and hypertension are on the rise, leading to more frequent and longer hospital visits.

5. Limited Public Health Investment – While the UHC Act was landmark legislation, many LGUs still struggle with implementing effective health financing systems locally.
   
   

Who’s Hit the Hardest?

Low- and middle-income families are most affected, particularly those with chronic illnesses or living in provinces where tertiary care is limited. Many are forced to defer treatment or turn to online crowdfunding to pay for hospital bills, surgeries, or cancer treatments.

"We’ve seen a sharp increase in patients who hesitate to get admitted due to fear of unaffordable costs," shares Dr. Maria Luz Tolentino, administrator of a Level 2 hospital in Southern Luzon.

What Can Be Done?

Experts suggest a multi-pronged approach:

• PhilHealth Reform: Streamline claims processing and increase reimbursement rates for critical illnesses.

• Price Regulation: Expand the Maximum Retail Price (MRP) system for essential medicines.

• Health Budget Reallocation: Increase LGU investments in primary care and preventive health.

• Public-Private Partnerships: Support affordable diagnostics and specialty services through collaborations.
  
  

Hope on the Horizon

In 2025, the Department of Health (DOH) has committed to a ₱30 billion expansion of primary healthcare services in underserved areas. In addition, Congress is pushing amendments to the Cheaper Medicines Act and proposing the creation of a Philippine Medicines Pricing Authority.

“Every Filipino deserves access to affordable, quality healthcare,” said Senator Risa Hontiveros during a recent UHC oversight hearing.

The goal is clear: a more equitable, financially sustainable healthcare system that truly works for every Juan and Juana.