How do we make healthcare payments fairer—for both patients and providers?
On April 29, Dr. Frances Dominique V. Ho of the PIDS Health Economics and Finance Program (HEFP) presented “Kabayarang Sapat, DRG’s Dapat: Demystifying DRGs for Clinical Practice” at the 63rd Philippine Pediatric Society Annual Convention.
Representing PIDS-HEFP’s ongoing work with Philippine Health Insurance Corporation, Dr. Ho discussed the country’s shift from the current All Case Rates system to Diagnosis-Related Groups (DRGs)—a reform aimed at making healthcare payments more equitable, transparent, and responsive to patient needs.
Under the current system, hospitals are often paid the same amount for a case whether it’s straightforward or complicated. That mismatch leads to higher out-of-pocket costs for patients and financial strain for providers.
The shift to DRGs changes that.
Instead of one fixed rate per illness, DRGs adjust payments based on how complex a patient’s condition is. In practice, that means:
- More serious cases receive higher, more appropriate funding
- Hospitals are better compensated for the care they actually provide
- Patients are less likely to shoulder unexpected costs
As part of broader Universal Health Care reforms, she emphasized that data quality, provider engagement, and well-designed payment systems are critical to ensuring better health outcomes and financial protection for Filipinos.
The 63rd PPS Annual Convention (April 27–30, 2026) brought together pediatric health experts to explore collaborative approaches to modern healthcare challenges.
Explore DRGs and the work of PIDS-HEFP:
