Private hospitals hike rates amid soaring costs, peso depreciation

May 29, 2025 , 10:56 AM

(May 29, 2025) – Hospitalization costs in private hospitals across the Philippines have increased by 10 to 15%, with some top-tier facilities raising rates by up to 20%, a private hospitals group confirmed Wednesday.

In an interview over One News’ The Big Story, Dr. Jose Rene De Grano, president of the Private Hospitals Association of the Philippines (PHAPI), said the rate hike is a direct response to inflation, the weak peso, and rising operational expenses.

[EMBED VIDEO CUT-UP: https://www.youtube.com/watch?v=IkK4wNNwXzY]

De Grano explained that the surge in hospitalization rates is largely driven by the escalating cost of medical supplies, imported equipment, and increased wages for healthcare workers.

“Because of the increase in the prices of goods and even the exchange rate — we usually use dollars for buying equipment — those are the reasons why hospitalization costs have gone up by as much as 10 to 15%,” he said.

Larger Level 2 and Level 3 hospitals, which provide advanced and comprehensive medical services, have seen the steepest increases. PHAPI, which represents around 1,200 private hospitals nationwide, said the price adjustments are necessary to keep operations afloat without government subsidies.

While the rate hikes are concerning, De Grano noted that patients covered by PhilHealth have been somewhat cushioned. The state insurer reportedly increased benefit payouts by about 90% in early 2025, slightly reducing out-of-pocket expenses from 47% to around 43-44%.

However, premium costs for health insurance plans have also gone up by 5% to 10%, reflecting the broader strain on the healthcare system.

As for government arrears, De Grano confirmed that the Department of Health (DOH) and PhilHealth still owe billions to private hospitals. Around ₱7 billion remains unpaid from government guarantee letters used during the pandemic, though the DOH has recently begun partial payments. Meanwhile, PhilHealth still owes hospitals approximately ₱8 billion in old claims and another ₱8-10 billion in denied claims from the COVID-19 period.

Despite the increases, De Grano clarified that hospitals cannot raise prices indiscriminately.

“We can’t just increase prices anytime. We’re in a very competitive environment,” he said, adding that patients expect higher quality care in exchange for the added costs.

The hikes apply broadly across hospital services — including emergency care, surgery, dialysis, and chemotherapy — signaling a challenging time for Filipino patients amid persistent economic pressures.

(AGD)

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