PhilHealth, Thailand tie-up to develop DRG payment system

The Philippine Health Insurance Corporation (PhilHealth) and Thailand’s National Health Security Office (NHSO) have formalized a partnership aimed at improving financial coverage for in-patient care through the signing of a memorandum of understanding (MOU) recently.

PhilHealth President and CEO Emmanuel Ledesma Jr. and NHSO Secretary General Jadej Thammatacharee signed the agreement in Pasig City. The MOU focuses on developing a Diagnosis-Related Groups (DRG) payment system, which will replace PhilHealth’s current All Case Rates system.

According to PhilHealth, the DRG system is a case-based payment model that factors in diagnosis, procedures, complications, and patient characteristics such as length of hospital stay. 

This approach provides a more accurate estimate of hospital admission costs, leading to enhanced health insurance coverage for patients and fairer reimbursement for healthcare providers.

PhilHealth said the transition to the DRG system is expected to improve the quality and efficiency of healthcare delivery, ensuring more comprehensive and impactful services for Filipinos.

The MOU was signed during the 41st ASEAN Social Security Association (ASSA) Meetings held from November 25 to 27 in Parañaque City. Representatives from ASEAN member countries shared best practices and addressed common challenges in social security during the event.

ASSA is a regional organization fostering collaboration among social security institutions in Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand, and Vietnam.