Expenditure cuts to limit market opportunities in PH public health sector

Public health expenditure will see a 3.5% reduction compared to 2024 levels.

The Philippines’ reduction in total health expenditure allowance is expected to limit market opportunities within its public health system, according to BMI.

Despite a 10.1% year-on-year increase in the overall national budget, public health expenditure will see a 3.5% reduction compared to 2024 levels, slowing the progress of the Universal Health Care Act.

In line with this, private health expenditure is expected to grow at a compound annual growth rate of 7.2%, outpacing public spending, as more Filipinos turn to private healthcare.

“This shift in prioritisation is further indicated by the significant budget increases seen in other ministries such as defence, highlighting a divergence from health system prioritisation,” the report said.

The Senate approved the national budget for 2025 last 26 November 2024, which includes a total expenditure of $5.1b, covering the country’s health department and national health insurer.