A Study on the Financing of LGU-Owned Hospitals

A Study on the Financing of LGU-Owned Hospitals

Project Director:  Marites M. Tiongco
Funding Agency:  Philippine Council for Health Research and Development (PCHRD)

This study provides an overview of the financing flow of local government unit (LGU)-owned hospitals. It quantifies how hospitals in LGUs outside the jurisdiction of the Department of Health (DOH) are financed. Specifically, it determines the size, location, and utilization of hospital services in LGU-owned hospitals; collects data on the sources of funds of LGUs, including subsidies and donations, and its uses in delivering local health services; quantifies revenue sources and expenditures of LGU-owned hospitals, and assess its financial sustainability over the period 2010-2015; defines the current system of financing, budgeting, allocation of resources, and existing governance mechanisms, and operations and management systems of hospitals managed by LGUs; assesses the efficiency and effectiveness of health service delivery in LGU-owned hospitals, including planning, budgeting, procurement of goods and services, hiring and motivation of staff, and management of systems; and provides a baseline for a needs-focused intervention that aids in planning toward improving the performance of health service delivery in LGU hospitals.

Key words: LGU-owned hospitals, sources of funds, expenditures, financial sustainability, resource allocation, health service delivery