The Private Hospitals Association of the Philippines (PHAP) is seeking an extension of six months to the implementation of Republic Act 9502, or the slashing of drug prices by 50 percent, to enable its members to dispose of their stocks that were bought at old prices from their suppliers.

In a phone interview with Dr. Rustico Jimenez, president of the PHAP, he said they are not against the implementation of the law, but they are merely seeking consideration on the part of the government since the mandatory implementation of the reduced prices will result in immense losses for private medical facilities that spent millions of pesos for their current inventories.

“If they will push the implementation on Aug. 15, it will not be fair to the private hospitals because we have a lot of stocks in the hospitals that were bought under old prices,” he said. “In Laguna, we have a hospital that has an inventory of P8 million. That is one hospital alone.”

Jimenez said they were informed by the Department of Health only last week of the program’s mandatory implementation, but they were not consulted on the extent of the reduction the prices would undertake.

He said approaching their suppliers for a compromise is also not an option because they are binded by contracts upon purchase of the stocks.

He disclosed that their concern also has something to do with the guidelines of the law wherein the PhilHealth and HMOs will only pay the prices indicated by the MRP come Aug. 15.

“What will become of us then, we will take on losses because we bought the medicines at higher prices…. if this happens, how can we get the funds we need for the operation of the hospitals? We will be forced to close down.”

Jimenez said that their members are willing to cooperate with the health department in easing the burdens of the masses, so long as they are given reasonable time to break even.