High wages, huge demand to drain PHL of more HCWS

THE “huge wage differential” and the high demand for healthcare workers (HCW) due to aging populations could cost the Philippines more of its healthcare professionals in the medium term, according to the Philippine Development Plan (PDP).

This is despite the deployment cap of 7,500 on healthcare workers per year. This cap was the relaxed version of the ban imposed during the pandemic to prevent the country from experiencing any shortage in health workers.

Based on government estimates, nurses employed by private facilities earn an average of P17,000 while those employed in government hospitals earn an average of P35,000. However, salaries of nurses in the United States average P275,000.

“Demand for HCW has been amplified by the pandemic, especially in advanced economies with aging populations. This translates into a huge wage differential,” the PDP stated.

“The wage offer in advanced economies is expected to increase with the growing demand for health care, making it more attractive for Filipino health workers to go abroad. This may adversely affect access to, and quality of health care in the country,” it added.

In order to create more opportunities locally for HCWS, the government intends to allow local government units to increase their investments on health personnel.

This will be done through the adjustment of the Personnel Services cap in the Local Government Code. The adjustment can be financed given the increase in the resources of local government units (LGUS), thanks to the Mandanas-garcia Ruling and the Universal Health Care (UHC) Law.

The government considers the Philippine Health Insurance Corporation (Philhealth) and other national agencies as crucial to the implementation of UHC Law.

“At the national level, sustainable financing arrangements in support of UHC will be pursued and both available and emerging financing opportunities will be maximized,” the PDP stated.

Part of the targets of the administration in the medium term is to increase the life expectancy of males to 71.14 years old and females to 77.42 years old from the 2020 baseline of 69.63 years old for males and 75.91 years old for females.

The government also aims to reduce the country’s maternal mortality ratio per 100,000 live births from the 144 maternal deaths per 100,000 ratio in 2020. This year, the number is expected to decline to 87 deaths per 100,000 live births; 84 deaths in 2024; 81 deaths in 2025; 78 deaths in 2026; 76 deaths in 2027; and 74 deaths in 2028.

The administration also aims to reduce neonatal mortality rate per 1,000 live births from the 15 deaths per 1,000 live births recorded in 2022. The PDP would have this reduced to 10.54 deaths per 1,000 in 2023; 9.96 deaths in 2024; 9.38 deaths in 2025; 8.81 deaths in 2026; 8.23 deaths in 2027; and 7.65 deaths in 2028.

Per the PDP, infant mortality per 1,000 live births will also be decreased from the 22 per 1,000 in 2022. This will be cut to 15.83 infant deaths per 1,000 live births in 2023; 14.97 infant deaths in 2024; 14.11 infant deaths in 2025; 13.25 infant deaths in 2026; 12.38 infant deaths in 2027; and 11.52 infant deaths in 2028.