MANILA, Philippines - Many communities still feel the gaps in healthcare services as funding gets stuck in salaries and paperwork instead of reaching frontline healthcare programs, a study showed.

The study, commissioned by the Unilab Center for Health Policy (UCHP) and carried out by the Ateneo School of Government and the Ateneo Policy Center, reviewed budget practices from 2022 to the middle of 2025, and revealed that municipalities remain heavily reliant on the National Tax Allocation (NTA), which provides 74 percent to 95 percent of their income, and that overlapping planning requirements and delayed releases often keep health resources from being fully utilized.

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While local health budgets rose up to five percent in recent years, a large share of these funds are absorbed by personnel services, leaving fewer resources for medicines, equipment and community health programs, the study found.

The report also flagged misaligned directives between national agencies and local government units, alongside weak monitoring systems that undermine transparency.

UCHP director John Basa said that the findings point to the urgent need for stronger technical support and clearer policy guidance, and for the Department of Budget and Management (DBM), the Bureau of Local Government Finance, the Department of the Interior and Local Government, and the Department of Health to work together to help LGUs spend smarter.

“With improved systems and alignment, LGUs can transform their health budgets from routine expenditures into powerful investments that directly improve the wellbeing of their constituents,” Basa said.

Gaps in healthcare services remain - study

Dr. Maria Eufemia Yap, Senior Research Fellow at the Ateneo Policy Center, said the study was designed not only to track spending but to identify root causes of inefficiencies. The goal, Yap said, is to help LGU's move past bottlenecks and maximize resources for health.

“This research supports DBM’s public financial management roadmap and pushes for greater fiscal accountability. Our ultimate aim is to convert field findings into scalable instruments for national reform.” Yap added.

DBM Secretary Amenah Pangandaman, through a message read by Undersecretary Margaux Salcedo, welcomed the findings and said that they are reinforcing efforts of the DBM to guide LGUs.

“LGUs must ensure that their Local Investment Plan for Health and Annual Operation Plans are fully aligned with the National Health Expenditure Program, as this will enable them to access counterpart funds and maximize resources for their localities," Pangandaman said. The DBM urged LGUs to strengthen partnerships with the DOH to maximize national programs such as the Human Resources for Health Deployment and Medical Assistance initiatives, which directly benefit communities.