Palace relays 'accounting reconciliation' over PhilHealths unpaid debt to PH Red Cross to resume COVID-19 tests

On Wednesday, Malacañang said that authorities need to complete an accounting reconciliation before PhilHealth settles its P930-million debt to the Philippine Red Cross, nearly a week since the organization stopped state-funded COVID-19 tests.

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Philippine Red Cross is responsible for about a quarter of the country's 4.1 million COVID-19 tests and charging PhilHealth an amount of P3,500 for every test.

Presidential Spokesperson Harry Roque said, 

Red Cross is a beneficiary of both donated machines and donated testing kits, in addition to those they purchased using funds also from the government.

With that he added that PhilHealth should not pay the same grade for all PCR tests undertaken. There’s a price differential if the machine being used by the testing facility is donated and there’s also a price differential if the testing kits being used were donated.

It’s really a matter of accounting reconciliation. It is not as simple as paying P3,500 for every test undertaken. We have to differentiate still between those tests conducted using machines and testing kits paid for by the Red Cross, and those using donated machines and testing kits,

he added.

Last week, Red Cross decided to halt the coronavirus tests chargeable to PhilHealth after it failed to settle its outstanding balance. As a result, it has slowed down the processing of repatriated Filipino migrant workers, who are required to secure a negative swab test before they are allowed to go to their hometowns. Some 4,000 OFWs are stuck in Metro Manila, said Labor Secretary Silvestre Bello III.

President Duterte, in his public address last Monday, has vowed to find funds to settle PhilHealth’s debt. 

The President has already committed to PhilHealth that it will be paid and so I think it will be paid if not this week, then next week at the latest,

said presidential spokesman Harry Roque. 

Because with the undertaking to pay coming no less from the President last Monday, I  believe Senator (Richard) Gordon should no longer have any doubts that it will be paid. I think that assurance should be enough for the Red Cross to resume its testing,

he added.

Asked if Red Cross agreed with the government’s payment scheme, Roque said: 

I believe they did and I believe that there’s now an understanding between the government and Red Cross that the services will continue.

However, he said he had "no personal knowledge" on whether or not PRC would resume its testing once half of the dues has been settled.