Govt, hospitals trade threats over drug price reduction

Less than a week before a law imposing 50-percent price cuts on at least 21 essential medicines goes into effect, government and private hospitals exchanged threats over a possible hospital holiday. While hospitals said they might go bankrupt if their pharmacies are forced to slash prices by half, the Department of Health (DOH) on Monday reminded them that they risk facing criminal charges and losing PhilHealth accreditation. The threats came even as both sides had scheduled meetings this week to head off the possible hospital holiday. “Kakausapin natin sila, yan ang gagawin ko ngayong araw (I will talk to them today)," Health Secretary Francisco Duque III said in an interview on dzXL radio. However, Malacañang and DOH insisted that barring a last-minute presidential order, there will be no extension of the August 15 deadline for compliance with the law. “The August 15 deadline would not be changed. If there are hospitals that refuse to go along with it, they should be reported and penalized. The only exemption will be small drugstores that cannot cope with inventory," DOH Undersecretary Alexander Padilla said in Filipino in a separate interview on dwIZ radio. Effective Saturday, prices of at least 21 medicines will be slashed by 50 percent in compliance with the Cheaper Medicines Law. Smaller pharmacies will have until September 15 to comply. Last July 28, President Gloria Macapagal Arroyo signed Executive Order 821, which imposes a 50-percent reduction on the cost of five essential medicines after drug firms refused voluntary price cuts on the said products. [See: Arroyo EO halves prices of anti-cancer, 4 other essential drugs] Earlier, pharmaceutical firms have volunteered to lower the prices of 16 other essential medicines, bringing to 21 the number of medicines covered by EO 821. On July 28, it was also revealed that pharmaceutical firms have also offered to slash the prices of 22 other drugs. But for his part, Private Hospitals Association of the Philippines spokesman Rustico Jimenez said on Monday that the price cuts might lead to bankruptcy of some hospitals. “Maraming ginagamit talaga sa hospital na in-patient. Kung malulugi ang hospital wala kaming pangsweldo sa mga empleyado.... So later on kung isip ng may-ari ng hospital later on di na kailangan mag-holiday, baka magsara na lang because of bankruptcy," Jimenez told dzXL radio. (There are many medicines hospital use for in-patient purposes. If hospitals are forced to comply, they may go bankrupt and shut down)," Private Hospitals Association of the Philippines spokesman Rustico Jimenez said in an interview on dzXL radio Monday. Jimenez also asked for an extension of the August 15 deadline for hospitals, in the same way health authorities gave small pharmacies up to September 15 to comply with the law. Jimenez added that hospitals were not informed of the August 15 deadline, saying they were called to only two meetings. He said they learned of the August 15 deadline only two weeks ago. But Duque said the hospitals face the loss of their PhilHealth accreditation if they push through with a hospital strike. “Lumalabag sila pag ginawa nila yan at pwede natin sila tanggalin ng accreditation sa PhilHealth (They are violating their charter and they can lose their PhilHealth accreditation)," Duque said. When asked if the hospitals can be criminally charged, Duque said it is “possible." DOH head executive assistant Robert So said that while Jimenez never brought up the concern during their meetings, the DOH’s doors are open for a solution. But in an interview on dzBB radio, So said the DOH’s doors remain open for a solution. “Di naman sila malulugi kung yan sinasabi nila. Sinabi naman natin babayaran sila ng multinational companies. May mga rebates kung saan babayaran ang on-stock na nabili nila nang mmas mahal. Kailangan magbilang sila ng inventory nila, ang gamot na nandoon na nabili nila, tapos babayaran sila ng kumpanyang yan. So bakit sila malulugi (They will not lose money. Multinational drug firms will give them rebates or discounts for their inventory)," he said. - with a report from Sophia Dedace, GMANews.TV