P45-million COVID-19 funds to dialysis provider still ‘unjustified’ — Lacson
MANILA, Philippines — There is no justifying PhilHealth's release of P45 million in funds meant for calamitous events to a dialysis company amid the COVID-19 pandemic, Sen. Ping Lacson said on Thursday.
This comes after a dialysis company linked to alleged anomalies in PhilHealth's payment advances to healthcare institutions (HCIs) issued a statement denying any illegal or unethical activity.
"Nothing can justify the release of funds in the aggregate amount of at least P45 million to B. Braun Avitum Dialysis Center Inc. that has not catered to a single COVID-19 patient and with such record speed, compared to more deserving HCIs, especially government hospitals catering to COVID patients," Lacson countered.
B. Braun Avitum Philippines in their statement confirmed that it received funds from PhilHealth from its Interim Reimbursement Mechanism, which is intended for healthcare institutions hit by calamitous or "fortuitous events."
According to the company, the funds it received from PhilHealth have allowed it "to continue to provide renal services to dialysis patients who require regular treatment."
"Such treatment must not be interrupted despite the coronavirus situation, as our parents' lives will be compromised," it added.
However, Lacson has emphasized that the issue is with the release of funds meant for COVID-19 response to a healthcare institution that does not cater to coronavirus patients.
According to the senator, PhilHealth has released "hundreds of millions" to dialysis centers and maternity care providers but could not release P19 million to the Ospital ng Maynila which was accepting COVID-19 cases.
SEC registration
As the Senate resumed its probe into PhilHealth on Tuesday, Lacson took further issue with the dialysis company, claiming that there is no B. Braun Avitum dialysis center registered with the Securities and Exchange Commission.
He presented a certificate from the SEC which stated that “B. Braun Avitum Dialysis Inc” is not a registered corporation and that the commission only had a “B. Braun Medical Supplies Inc” on record.
"Our company was registered with the [SEC] on 11th December 1985 as B. Braun Medical Supplies Inc., whereas B. Braun Avitum a wholly-owned subsidiary of B. Braun Medical Supplies, Inc. was originally incorporated as Philippine Renal Care, Inc. on 24th January 2002...and later renamed as B. Braun Avitum Philippines, Inc.," the company said on Thursday.
"The [SEC] issued a certification which I read during last week's hearing that B. Braun Avitum Dialysis Center Inc is not registered as a corporation," Lacson countered later the same day.
"Unless they show their documents to the contrary and validated by SEC, I will have to stand by the government agency's issued document," he added.
Meanwhile, PhilHealth on Thursday night announced that it would be suspending the implementation of IRM to “review and resolve” issues arising from the congressional inquiry.
The agency also vowed to find ways to make the IRM more responsive to the needs of healthcare facilities affected by the COVID-19 pandemic.
On Friday, PhilHealth clarified that "regular COVID-19] inpatient benefits, testing and community isolation packages shall continue to be enjoyed by its affected members," despite the suspension.
The Philippine Health Insurance Corp. is facing scrutiny anew over more allegations of corruption.
It was in the headlines last year because of an alleged scam involving payments to WellMed Dialysis Center for treatments charged for a patient who had already died.
Follow this thread for updates.
The Philippine Health Insurance Corporation announces that the agency has released P500 million as partial payment to the Philippine Red Cross.
"PhilHealth takes exception to the insinuation that it is reckless and is playing on people’s lives. Its prudence in taking charge of its members’ hard-earned contributions is central to the state health insurer. Its exercise of judiciousness is to protect the people and their funds", PhiHealth President and CEO Dante Gierran says in a statement.
PhilHealth has released P50 million as partial payment to the Philippine Red Cross, PhilHealth President and CEO Dante Gierran says.
"PhilHealth takes exception to the insinuation that it is reckless and is playing on people’s lives. Its prudence in taking charge of its members’ hard-earned contributions is central to the state health insurer," Gierran says.
The state insurer adds that it will expedite the processing of its remaining balance to Red Cross following strict compliance to government accounting rules and regulations.
Two committees in the House approve a report recommending the filing of administrative and criminal charges against Health Secretary Francisco Duque III, former PhilHealth chief Ricardo Morales and other officials over the widespread corruption in the state health insurer.
President Rodrigo Duterte says the government will compensate the Philippine Red Cross for COVID-19 tests.
The Red Cross recently halted conducting tests due to the P930 million debt of the Philippine Health Insurance Corporation for the conduct of COVID-19 tests for the government.
"I don't think Sen. (Richard) Gordon would have in his mind to stop. What I'm trying to say is we will pay," Duterte says in a recorded address aired Monday night.
The Philippine Red Cross will stop conducting COVID-19 tests chargeable to PhilHealth due to the state insurer's outstanding balance.
PRC says it will no longer receive specimens for testing of OFWs, those arriving in airports and seaports, individuals through mega swabbing facilities, frontline health and government workers, and others included in the expanded testing guidelines of the DOH.
"The PRC does not have unlimited resources to replenish the testing kits for its laboratories unless PhilHealth, its major creditor, settles its lawful obligations to the PRC," PRC says in a statement dated October 14.
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