MANILA, Philippines — The Department of Health (DOH) was allocated a P35.37-billion budget for 2025, or a P6.78-billion increase from 2024, to upgrade healthcare facilities and medical equipment across the country.
This is the largest budget granted to the health department since the implementation of the Health Facilities Enhancement Program (HFEP) in 2017.
Over the past eight years, the HFEP has primarily used capital outlay funds for the construction of super health centers, rural health centers, and both local government and DOH hospitals.
This funding has supported the completion, upgrading and repair of healthcare facilities, as well as the procurement of transportation and medical equipment.
Under the 2025 General Appropriations Act (GAA), the Department of Public Works and Highways (DPWH) oversees infrastructure projects exceeding P5 million for Centers for Health Development (CHD) and other healthcare facilities.
However, the Department of Health (DOH) maintains control over approved multi-year contracts, as well as projects for DOH and corporate hospitals, and those directly managed by the DOH central office.
The HFEP prioritizes the establishment and expansion of healthcare in Geographically Isolated and Disadvantaged Areas (GIDAs), which include hard-to-reach or vulnerable communities marginalized by transportation challenges, adverse weather conditions and high poverty levels.
Building primary care facilities in the Universal Health Care sites is also a priority under the HFEP.
Delayed, unimplemented projects
However, implementing the program has also been challenging, according to the 2023 Commission on Audit (COA) report.
State auditors identified deficiencies in the implementation of P2.83 billion in HFEP infrastructure projects, citing delays, underused facilities and unimplemented projects.
Several healthcare facilities in Western Visayas, Zamboanga, Davao and Soccsksargen were flagged for delays.
Auditors noted that these delays were caused by temporary work suspensions due to site accessibility issues, contract terminations, late approval of documents, safety hazards like falling debris and incomplete elevator shafts, and challenging road conditions.
Some facilities remained unused due to incomplete construction, lack of technical support and staff, absence of post-construction monitoring and project delays.
For example, at Dr. Jose Rizal Memorial Hospital in Zamboanga del Norte, the contractor abandoned additional work for a waste disposal facility.
At the Western Visayas Center CHD, projects were left unimplemented due to bidding failures, lack of contractors in GIDAs, site ownership issues and natural hazards.
COA said these deficiencies have hindered the public from fully benefiting from the facilities and prevented the program’s objectives from being achieved.
It urged the HFEP Management Office head to closely monitor project progress to ensure timely completion. It also called on the heads of regional health offices and hospitals to resolve issues causing delays and leaving facilities unused.
COA also flagged the procurement and handling of P183 million worth of equipment under the HFEP.
In the Davao region, ambulances sat unused due to the local government’s failure to secure necessary licenses and staff. While the equipment was available, it was left unused.
In Western Visayas, delays in issuing implementation guidelines and notices to proceed led to 56 undelivered equipment and 81 uncompleted projects from 2021 to 2022.
COA emphasized the need for local governments, healthcare institutions, and the DOH to coordinate regularly to address procurement and licensing issues.
The HFEP’s goal is to improve access to basic, essential and specialized health services in underserved areas. Failing to complete projects or leaving equipment unused deprives Filipinos from having accessible healthcare, state auditors said.
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