DOH Targets Provincial Hospital Expansion of Zero Balance Billing with PHP1 Billion Fund
In a significant move to enhance healthcare accessibility across the Philippines, Department of Health (DOH) Secretary Teodoro Herbosa has expressed strong optimism about expanding the zero balance billing program to provincial hospitals. This initiative will be supported by a substantial PHP1 billion fund specifically allocated for hospitals managed by local government units (LGUs).
From DOH Facilities to LGU Hospitals: A Strategic Shift
Previously confined exclusively to DOH-run hospitals, the zero balance billing program is now poised to reach a broader network of provincial healthcare facilities. The DOH has earmarked these funds to initiate implementation in selected large LGU-managed hospitals, marking a pivotal expansion of the government's healthcare financial support system.
"We are currently studying how to support LGU hospitals, since PHP1 billion is minimal compared to what has been spent in DOH hospitals," Herbosa stated during the inauguration of the first mall-based wellness clinic in Eastern Visayas, located at Robinsons North in Tacloban City on January 29, 2026.
Proven Success and Substantial Impact
The program has already demonstrated remarkable effectiveness in DOH hospitals. In 2025 alone, Secretary Herbosa reported that more than 1.3 million patients benefited from zero balance billing, completely avoiding hospital bill payments. From July to December 2025, hospital charges totaling PHP74.65 billion were fully covered for patients in basic or ward accommodations.
Several LGU hospitals have proactively implemented similar programs, including facilities in:
- South Cotabato
- Sultan Kudarat
- Pampanga
- Bataan
Presidential Support and Strategic Implementation
President Ferdinand R. Marcos Jr. has confirmed the allocation of the PHP1 billion fund, which will specifically target reducing patient expenses for basic accommodation to zero in participating LGU hospitals. This initiative represents a strategic expansion of the government's zero balance billing policy beyond DOH-run facilities.
The DOH has outlined a meticulous selection process for LGU hospitals that will initially implement the program. Selection will be based on:
- Local health systems' maturity levels
- Technical preparedness indicators
- Compliance with eligibility criteria
- Reporting requirements and operational obligations
These criteria are designed to ensure each LGU possesses the capacity to sustain the program effectively. Funds will be released directly to qualified large LGU hospitals, mirroring the existing zero balance billing system in DOH hospitals, without requiring guarantee letters from politicians.
Broader Healthcare Accessibility Goals
The zero balance billing initiative forms a crucial component of the administration's comprehensive push to reduce out-of-pocket healthcare expenses and improve access to affordable medical services. This expansion particularly targets indigent and financially vulnerable patients across provincial regions, addressing healthcare disparities and strengthening the national health system.
