By Angelo S. Samonte, Reporter

The government was able to convince private hospitals not to increase their administrative
fees as pharmaceutical companies also promised to give hospitals discounts and rebates.

President Gloria Arroyo, who arrived on Wednesday from Saudi Arabia, made the announcement in Iloilo province on Thursday night after an agreement was reached by government authorities and private hospital administrators.During an interview, President Arroyo said that Health Undersecretary Alex Padilla was able to persuade administrators of private hospitals to forego their service-fee increases.

Padilla accompanied the President to Iloilo along with Executive Secretary Edurado Ermita, Press Secretary Cerge Remonde and other members of the Cabinet.

He said that his meeting with the Philippine Hospitals Association (PHA) and the drugstores associations took place on Wednesday.

Private hospitals warned the public of the increase, saying that they need to recoup their losses arising from the implementation of the Cheaper Medicines Law.

Prompted by Tuesday’s action of private hospitals, Health Secretary Francisco Duque 3rd challenged private hospitals to open their financial books to back up their claims.

On August 15, the government implemented a 50-percent reduction in the prices of select medicines under the maximum drug retail price (MDRP) system and a 10 to 50 percent price cut on ot her drugs through the government-mediated access price (GMAP) program.
The MDRP and GMAP programs were fully implemented on September 15.