Effective Utilization of Local Health Budgets: Key Takeaways and Recommendations

A recent study conducted by the Ateneo School of Government for the Unilab Center for Health Policy (UCHP) highlights the need for clearer guidance, technical assistance, and stronger intergovernmental coordination to optimize the impact of local health investments. The study examined the budget practices of several local government units (LGUs), revealing both progress and persistent challenges in the country's journey towards universal health care. Local government health spending is increasing, but municipalities remain reliant on the National Tax Allocation, with limited resources available for actual health operations and programs after covering personnel costs.

Key Takeaways:

• Local government health spending is increasing, with budgets rising by as much as 5 percent, demonstrating a commitment to prioritizing health at the local level.
• LGUs remain heavily reliant on the National Tax Allocation, with limited resources available for actual health operations and programs after covering personnel costs.
• A disconnect between national guidelines and local realities often results in plans that fail to address emerging health needs, leading to weak monitoring and local council dynamics complicating budget approvals and accountability.
• Promoting financial accountability and aligning national and local priorities is crucial to ensure that health resources are spent effectively and benefit the people.
• The DBM, DOH, and other relevant agencies should enhance collaborations with private sector partners like the UCHP to collectively address policy gaps that impede universal healthcare goals.
• Congress should examine whether current legislation encourages genuine and sustainable spending on health at the LGU level.
• The UCHP study assists policymakers in effectively managing local health budgets and highlights the need for stronger technical support and policy guidance from government agencies.

Statistics:

• Local government health spending is increasing by as much as 5 percent.
• LGUs rely heavily on the National Tax Allocation, with limited resources available for actual health operations and programs after covering personnel costs.
• Filipino families spend roughly half a trillion pesos on healthcare each year.
• Local government health expenditures still fall behind despite increasing budgets.

Sources:

• BusinessMirror: 'More money for health, but services fall short,' September 7, 2025.
• Unilab Center for Health Policy: Study on Effective Utilization of Local Health Budgets.
• Ateneo School of Government: Study on Local Government Budget Practices.
• Unilab Foundation: 2025 policy agenda on addressing high out-of-pocket payments for healthcare.
• Universal Health Care Act: Law creating the Philippine Health Insurance Corporation (PhilHealth) and mandating comprehensive healthcare protection for all Filipinos.