The Commission on Audit (COA) has flagged the Department of Health (DOH) after its 2024 annual audit found over P30 million worth of drugs and medicines expired, with nearly P100 million more approaching expiration. The audit report showed that P34.8 million worth of medicines and other inventories were already expired, while P99.5 million were nearing expiry due to deficiencies in the department’s inventory management system affecting procurement planning, distribution, and monitoring. "Drugs, medicines, and other inventories were found expired or nearly expired with a total value of P34,825,702.20 and P99,461,477.71, respectively, due to deficiencies in inventory management," COA said. DOH spokesperson Albert Domingo clarified that the nearly P100 million in medicines could still have been distributed, as they had about one year remained before expiration at the time of the audit. He also noted that the department is implementing an electronic logistics and management information system, although only 60–70% of it is currently operational. Among the expired items were 19 million doses of COVID-19 vaccines, which were excess stocks accumulated after multiple local government units purchased vaccines despite national advisories. These vaccines remained in DOH inventory pending proper disposal. "When the pandemic was ending, many wanted to donate their medicines to prevent expiration." Additionally, subsidies for indirect contributors such as senior citizens, persons with disabilities, and indigents were deemed insufficient. "In FY 2024, PhilHealth received only P9.307 billion—approximately 23 percent of the P40.283 billion appropriated—for health insurance premiums of indirect contributors, including indigents, SCn members, PWDs, and POS patients," COA reported. The auditors also noted that no allocations were received in 2023 and 2024 for expanded benefit packages, including dialysis and mental health services. Domingo, however, assured the public that PhilHealth has sufficient reserves, adding that it will receive P113 billion in subsidies under the 2026 national budget. "PhilHealth's reserves are sufficient." The audit also raised concerns about PhilHealth claims, noting that 13 DOH hospitals faced over P1 billion in unsettled claims, affecting operations. Denied and retained claims totaled P786.7 million and P298.8 million, respectively, due to non-compliance with PhilHealth claims processing guidelines. Domingo said hospitals can now file claims after discussions with the PhilHealth Board, chaired by DOH, adding that the insurer’s financial statements reflect more accurate payments. COA further highlighted risks to PhilHealth operations, including the partial release of P60 billion of funds back to the national treasury, down from P89 billion, due to a Supreme Court temporary restraining order. "Under the UHC and PhilHealth laws, only up to two years of operational expenditure should be kept in reserve," he said. This COA report highlights the ongoing need for improved inventory management in DOH and the critical importance of ensuring timely and accurate PhilHealth claims to maintain the sustainability of the national health system.
