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February 14, 2020: Republic of The Philippines Region Ix Pagadian City Tel. No. (062) 2141330

The letter from the Provincial Legal Office of Zamboanga del Sur responds to an Audit Observation Memorandum regarding a provision in the Appropriation Ordinance requiring private medical practitioners to share a reasonable amount of their professional fees with the Zamboanga del Sur Medical Center (ZDSMC). The letter argues that the provision is vague since there are no guidelines on what constitutes a reasonable share. It also notes that private doctors already provide a service to ZDSMC by bringing private patients and treating charity patients without charge. The Provincial Legal Office and local officials are concerned the provision may discourage doctors from practicing at ZDSMC and reduce its revenues, to the detriment of constituents. Nonetheless, relevant

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56 views2 pages

February 14, 2020: Republic of The Philippines Region Ix Pagadian City Tel. No. (062) 2141330

The letter from the Provincial Legal Office of Zamboanga del Sur responds to an Audit Observation Memorandum regarding a provision in the Appropriation Ordinance requiring private medical practitioners to share a reasonable amount of their professional fees with the Zamboanga del Sur Medical Center (ZDSMC). The letter argues that the provision is vague since there are no guidelines on what constitutes a reasonable share. It also notes that private doctors already provide a service to ZDSMC by bringing private patients and treating charity patients without charge. The Provincial Legal Office and local officials are concerned the provision may discourage doctors from practicing at ZDSMC and reduce its revenues, to the detriment of constituents. Nonetheless, relevant

Uploaded by

Javicue
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as ODT, PDF, TXT or read online on Scribd
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Republic of the Philippines

REGION IX
PROVINCE OF ZAMBOANGA DEL SUR
Pagadian City
PROVINCIAL LEGAL OFFICE
Tel. No. (062) 2141330

February 14, 2020

JEANETTE A. CALAMOHOY
OIC – Supervising Auditor
Commission on Audit
Office of the Provincial Auditor
Province of Zamboanga del Sur

Attention : ATTY. KATRINA Q. ACANA


Audit Team Leader

Subject : Audit Observation Memorandum (AOM) No. 2020-04 (2019)

Dear Auditor Calamohoy:

This refers to your Audit Observation Memorandum (AOM) dated January 21, 2020 addressed
to Hon. Victor J. Yu, Provincial Governor of the Province of Zamboanga del Sur,
recommending that the Governing Board of Zamboanga del Sur Medical Center (ZDSMC) in
consultation with the Local Finance Committee and private/visiting doctors establish policy
guidelines to implement Section 9 (B) of the Appropriation Ordinance to include the
determination of appropriate and reasonable amount that should be shared by private medical
practitioners from their professional fees; and remedial measures to demand and collect
payment from the private/visiting doctors which were earned in the previous years from the
time the provision came into effect by virtue of the appropriation ordinance.

The basis for said AOM was the provision under Section 9 (B) of Appropriation Ordinance No.
SP-1-2019, “Subject to existing laws, rules and guidelines, private medical practitioners may
be allowed to serve patients in the Medical Center, provided a reasonable share of their
professional fees shall accrue to the Medical Center.”

The provision on reasonable share of the private medical practitioners’ professional fees could
not have been implemented as there are no existing implementing rules and regulations even at
the present time, the provision thus remains vague. The amount which constitutes reasonable
share of the private medical practitioners’ professional fee that shall accrue to ZDSMC is not
yet determined.

On the part of the visiting private medical practitioners, their charge of professional fees while
attending patients at ZDSMC are lesser compared to the rate they charge for their patients at
private hospitals. In the rendering of medical services of these doctors, ZDSMC is also
acquiring income from their private patients, which may be considered as a form of
compensation in itself for the hospital. These visiting private medical practitioners also do not
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charge professional fees for the charity patients at ZDSMC. It is the view of ZDSMC that this
is a win-win situation which is for the good of public service.

The Provincial Legal Office has also met with the Sangguniang Panlalawigan Members and
they have expressed their concern over the same provision as it may discourage present private
medical practitioners from practicing in ZDSMC to the detriment of the constituents of
Zamboanga del Sur. On the bigger picture, the revenues of the hospital would be affected as the
private medical practitioners would choose not to bring their private patients to ZDSMC in
order to avoid being deducted a share of their professional fees, in addition to being deducted
government money payment tax.

Nonetheless, ZDSMC, the Provincial Government and the Sangguniang Panlalawigan shall
discuss the said provision, taking into account the recommendation of the Commission on
Audit.

Very truly yours,

PROVINCIAL LEGAL OFFICE

By:

ATTY. MICHELLE S. ESPINA-VILLANUEVA


Attorney V
Province of Zamboanga del Sur

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