March 15, 2016 — Y: Rectives bys HIS EXCELLENCY PRESIDENT BENIGNO S.C. AQUINO 572 Fred hi prq MAR 18 2016 Melacafiang Palace, Manila Fin Oifce of the PEO YOUR EXCELLENCY: ‘The PHILIPPINE HOSPITAL ASSOCIATION, the mother organization of more than 1,900 hospitals belonging to the Government as well es the private sector, most respectfully bring to your attention Senate Bill No, 2720, entitled AN ACT PROVIDING FOR A COMPREHENSIVE NURSING LAW TOWARDS QUALITY HEALTH CARE SYSTEM, AND APPROPRIATING FUNDS THEREFOR. We respectfully and earnestly request your Excellency to have your economic team review the impact and effect of the provisions of Section 47 (photocopy of this pertinent provision is attached for easy reference) on the total health care environment before it is signed into law. ‘We agree with the intent of the bill to uphold the dignity of nurses and to promote their welfare. ‘The quality of care and compassion they render to patients undeniably brings prestige and honor to the hospital industry and the nation in general. While we have no objection to most provisions of the said proposed law, we would like to inform your Excellency that Sec. 47 thereof, which provides for a base pay upon entry into service, of not less than the Salary Grade 15, which at ‘Step 1 amounts to P26,192.00, will have adverse effects to many sectors. Firstly, the Universal Health Care Program of the Government: this is because it is 3x more than the average basic wage of P280 per day in most provinces set by the Tripartite wages and Productivity Board under the supervision of the National Wages and Productivity Commission (NWPC) and the Department of Labor and Employment (DOLE). Surely the Tripartite Wage Board represented by the Government, the Employers and the Workers are aware of the critical balance and the interplay that salary plays relative to the productivity, employment opportunity, business survival, the cost of living and the need to avoid salary distortion, Secondly, it will create disruption in the state of balance in the salary structure in hospitals. We believe that this provision constitute “cless legislation” as it favors only one sector in the heaith care system to the exclusion of other health care providers equally important to the delivery of affordable health. The implementation of this law will result to a major distortion and force the hospitals to raise the salary of the other health workers comprising approximately 60% of the hospital workforce to 3x its present level. Consequently all the services of the hospital will have. to commensurately increase to the detriment of all concerned, most specially the public. Furthermore, the hospitals, like any other businesses need to survive to be able to provide services to the sick and the dying. Thereupon, hospitals will be constrained to pass this additional expense to the patients. This will mean @ tremendous amount of money that the patients will have to shell out from their shallow pockets to pay for the balance (excess) of Philhealth coverage. This will set back our Universal Health Care Program to provide accessible and Affordable, Quality Health care to all. Philhealth will have to raise substantially its present budget if it were to maintain status quo of the program. Lastly, this proposed law unfortunately comes at a time training its manpower and acquiring new equipment, facilities and technology to conform with provisions of DOH AO-2012-012-A and to keep up with our neighbors in the ASEAN integration complementation program.‘With your kind indulgence, please allow me to say that Section 47 is like a small disturbance in the floor of the vast ocean that creates small ripples that gradually builds into big tidal waves that ultimately destroys everything on its path with catastrophic proportion. Thank you very much for your kind attention, Mr. President. Very truly yours, PHILIPPINE HOSPITAL ASSOCIATION by SU R/JESUS M. JARDIN, MD ident a 3) a hi [p= DR. JAIME A. ALMORA, R. ROLE. GALLEGD \VP-Luztn [vers U Tha: Lauroty OR. Le M, BRANA, DR, MARIA CSR \VP-Mindanao Secretary Cc: Hon, Janette Loreto-Garin, MD Hon. Rosalinda Dimapilis Baldoz, CESO I Hon. Alexander A. Padilla