Ben Madilynn
THE recent audit by the Commission on Audit (COA) uncovered unclaimed refunds amounting to P8.2 million intended for patients and doctors at the Mandaue City Hospital.
The 2023 COA report revealed lapses in managing these funds, which date back to a period before the hospital’s billing system was automated. During this time, patients were required to pay their hospital bills in full, including the portion that would later be covered by the Philippine Health Insurance Corp. (Philhealth).
Philhealth subsequently reimbursed the City in bulk for these payments.
However, due to incomplete data from Philhealth, identifying the specific patients and doctors entitled to these refunds has become problematic, City Administrator Jamaal James Calipayan told SunStar Cebu on Wednesday, Sept. 4, 2024.
COA’s report states that the City’s inability to accurately determine the rightful beneficiaries has resulted in these substantial funds remaining unclaimed.
Proper validation
Calipayan added that while the funds are available, they cannot be distributed to any claimant without proper validation, as doing so could lead to potential financial mismanagement.
This lack of clarity and oversight has delayed the disbursement of the refunds, raising concerns about the handling of public resources.
COA recommended that the City coordinate with the chief of the hospital to identify patients with outstanding refundable hospital bills and process the distribution of these refunds to both patients and doctors entitled to them.
State auditors also advised the City to cease recognizing trust liabilities in its initial recordings unless payments had been received from Philhealth. Trust liabilities refer to the obligations or debts that a trust must fulfill, including various financial commitments the trust is responsible for paying.
State auditors also recommended tracing the overstatement of trust liabilities and the amounts due from government entities, specifically for the year 2019, to ensure accurate financial reporting.
COA also advised the city accountant to prepare the required adjustments in the financial records to correct any misstatements for the years 2020 to 2023. This involved adjusting the Trust Liability for Hospital Fund Patients and the amount due from government entities, both by over P700,000.
Calipayan said a reply was already submitted to COA, but the latter has not responded yet. / CAV
