THE Department of Health (DoH) had P2.24 billion in unadjusted accounting errors and omissions in its 2025 financial statements, while state auditors flagged P226.16 million worth of expired medicines and medical supplies and P242.36 million in idle or undelivered medical equipment.
The Commission on Audit (CoA) said the unadjusted errors exceeded P1.85 billion — equivalent to 1% of the department’s total expenditures of P185.38 billion — the level at which discrepancies could materially affect the agency’s financial statements.
A consolidated audit covering 120 health facilities found unadjusted errors affecting assets by P2.25 billion, liabilities by P1.28 billion and equity accounts by P2.83 billion.
Auditors also flagged P242.36 million worth of medical equipment under 338 contracts in the Health Facilities Enhancement Program (HFEP) that remained idle, unused or undelivered.
CoA attributed the problems to gaps in planning and monitoring, saying specialized equipment was procured before officials confirmed whether facilities had suitable sites, sufficient space, adequate electrical capacity or completed buildings.
“The HFEP encountered challenges in fully meeting its objective of upgrading essential healthcare services due to gaps in strategic planning and monitoring,” state auditors said.
The audit also found P226.16 million worth of expired drugs, medicines and medical supplies as of Dec. 31, 2025.
CoA cited weaknesses in procurement planning, demand forecasting, distribution and warehouse monitoring that prevented medical inventory from being used or distributed on time.
“Operational and administrative challenges in the department’s procurement planning, distribution, and warehouse monitoring systems affected the timely utilization of medical inventory,” the auditors said.
CoA also found policy and implementation gaps in healthcare financial assistance programs, including the Medical Assistance to Indigent and Financially-Incapacitated Patients program and the zero-balance billing policy.
Findings across three Centers for Health Development and five other operating units included inconsistent financial assistance limits, undisbursed and unliquidated funds, deficits shouldered by health facilities, and inconsistent application of program guidelines.
These shortcomings threatened efforts to reduce out-of-pocket healthcare costs for financially disadvantaged patients, the auditors said.
Meanwhile, 209 of 327 audit recommendations from previous years remained unimplemented at the end of 2025. Outstanding suspensions, disallowances and charges against the department hit P9.57 billion.
DoH officials agreed to tighten procurement protocols, improve project monitoring and strengthen inventory controls. — Pexcel John Bacon