It doesn’t get any clearer than this: good public health promotes economic growth. Yet, investing in our people’s health isn’t a top concern for our leaders.
Last week, BBM was given a chance to show what his priority was. The Science and Technology Secretary met with him at Malacañang and asked for funds to complete the construction of the building to house the Virology and Vaccine Institute of the Philippines (VIP) and the Center for Disease Control (BBM reassured the DOST officials that) “We will find money for this when we are able to identify the specific items (other projects) not ready for implementation.” In the real world of the Philippine bureaucracy, this is a nice way of saying that nothing is forthcoming. If BBM was honestly supportive of this vital health-related project as he claimed, he would have allocated funds from his own budget. This is what BBM did when the Tourism Department asked for P500 million to fund a national branding campaign.
From what I know of branding campaigns in my 50 years in the industry, and the many attempts at them by DOT through different administrations, that is an expensive but useless shot in the dark. Nothing tangible will come out of it. BBM should have given the P680 million DOST needed to complete the Virology and Vaccine Institute and Center for Disease Control. Sayang naman. Filipino scientists working abroad have expressed interest in coming back and working with DOST in the institutes.
BBM’s snubbing of the health institutes came a week after he approved a national budget that gave PhilHealth zero budget. That was inflicted by Congress, but BBM didn’t use his persuasive powers to make sure that funds were maintained. We are left with the indelible impression that BBM, his Secretary of Finance and his congressional allies don’t prioritize our health needs.
The McKinsey Global Institute has published a study showing that social and economic equity are promoted by improving health. Their year-long research effort, culminating in the publication of Prioritizing Health: A Prescription for Prosperity, shows “poorer people tend to have worse health, which can limit their economic potential and may even create a vicious cycle. Emerging evidence suggests that ill health may perpetuate a poverty trap: poor childhood health translates to lower socioeconomic status in adulthood, increasing the exposure to health risks (such as poor-quality nutrition) and the barriers to accessing health services, which then affect subsequent generations of children.”
McKinsey pointed out that health wasn’t typically part of economic-growth discussions before the pandemic. The policy debate often focused on controlling healthcare costs, and McKinsey says this focus misses the bigger picture.
“Each year, poor health costs around 15 percent of global real GDP from premature deaths and lost productive potential among the working-age population. As organizations around the world look for tools to speed up economic recovery, rethinking health as an investment, not just a cost, could accelerate growth for decades to come.”
A study by the US National Institutes of Health says about the same thing. “Healthcare expenditure can result in better provision of health opportunities, which can strengthen human capital and improve productivity, thereby contributing to economic performance.”
The study, Healthcare Expenditure and Economic Performance by Viju Raghupathi, suggests “a positive correlation between healthcare expenditure and the economic indicators of income, GDP and labor productivity… The study shows that an increase in healthcare expenditure has a positive relationship with economic performance…
“Building on this and prior research, policy implications include that the good health of citizens indeed results in an overall better economy. Therefore, investing carefully in various healthcare aspects would boost income, GDP and productivity, and alleviate poverty.”
That’s how important the provision of universal access to healthcare is. Our failure to provide true and effective universal healthcare is an important reason why our economy has failed to match our regional neighbors. Let’s put it this way… a population that feels sick because health is not a government priority can’t be expected to be economically productive.
Dr. Brian Icasas Cabral, a kidney specialist and son of former Health secretary Esperanza Icasas Cabral, paints a dreary picture of the healthcare battlefield in his Tribune column:
“When you’ve walked the corridors of our hospitals for years, you develop a sixth sense for systems on the brink. It’s in the hushed conversations at the nurses’ station, the families quietly wondering if they can afford one more test, and the patients clinging to their PhilHealth cards like lifelines.
“Yet, in government halls, decisions can seem detached. Cutting PhilHealth’s subsidy in the 2025 national budget may look tidy on paper, but the real cost will be paid in delayed care, shuttered clinics and families teetering on financial collapse.
“PhilHealth is supposed to be the backbone of Universal Health Care (UHC), a promise that no Filipino would need to choose between their health and their future. But that promise has been repeatedly tested, and the subsidy cut threatens to widen existing cracks. Nearly 47 percent of health spending in the Philippines still comes directly from patients, far above the global average of 18 percent. Even insured families often face staggering bills, as PhilHealth reimbursements rarely cover the full cost of treatment. Families are left scrambling for loans – or forgoing care entirely.
“In rural areas, where healthcare options are already scarce, PhilHealth’s delays hit especially hard. In past years, unpaid claims reached P21 billion, forcing smaller hospitals to delay payroll or cut services. These statistics represent parents delaying a child’s surgery, senior citizens skipping life-saving medication and entire communities left behind. When families must choose between treatment and putting food on the table, the social fabric itself begins to tear.”
Our leaders must have a better appreciation of our health needs. Otherwise, our sick economy won’t get better.
Boo Chanco’s email address is bchanco@gmail.com. Follow him on X @boochanco.