UST Hospital pulls out amid COVID-19 losses, says Philhealth owes P180-M

MANILA – The Hospital of the University of Santo Tomás has dismissed workers due to the financial losses caused by the COVID-19 pandemic.

The director of the UST Hospital, Dr. Marcellus Francis Ramirez, said they had to “implement labor reduction measures to minimize their expenses and reduce the significant losses they had been suffering due to the COVID-19 crisis.”

The hospital’s statement was published online by the UST’s official student publication, The Varsitarian.

“Since the onset of the pandemic and the improvement in community quarantine (ECQ) and the closure that followed, the hospital’s overall census was significantly reduced. In addition, the majority of patients admitted were CoVid patients. Ordinary patients and electives stayed away from most hospitals even now for fear of possible COVID-19 infection, “Ramírez said.

“The enormous cost caused by our contingency measures to address the demands of the pandemic, which included the cancellation of elective procedures and admissions to make way for intensive care of patients with CoVid, as well as the tremendous impact on our patient census, it is taking a very serious cost in the sustainability of the hospital, “he added.

Ramírez also said that Philippine Health Insurance Corp. (Philhealth) owes the hospital at least P180 million.

“While Philhealth has instituted inpatient health care coverage for CoVid, reimbursement is delayed by an average of 5-6 months. Currently, Philhealth’s USTH account receivable is more than P180 million.” , said.

“Painful decisions were needed. In view of the huge impact of the pandemic, USTH has to implement the correct sizing of its non-crucial (not front-line) workforce complement, in addition to other measures that included adjusting hours of operation and implementation of other cost efficiency measures, “added Ramírez.

According to Ramírez, the hospital will give employees affected by the downsizing measures a 150 percent severance payment, as well as a 30-day notice.

According to The Varsitarian, The Ugnayang Nagkakaisang Manggagawa – University of St. Thomas (UNM – UST) held an online protest on Labor Day to declare what it calls a “wrongful termination” implemented by management.