NEGROS OCCIDENTAL, Philippines – More than a hundred dialysis patients from 18 towns and cities in southern Negros Occidental have been left without access to treatment following the closure of a dialysis center in La Carlota City due to the provincial government’s failure to pay its dues.

Nephroprime, operator of the hemodialysis unit at the government-run Don Salvador Benedicto Memorial District Hospital (DSBMDH), ceased operations on June 30 after nearly a decade, citing the financial strain caused by the capitol’s nonpayment of its 60% share of net income under a memorandum of agreement (MOA).

A health official in the province explained that delays in payments from the state health insurer Philippine Health Insurance Corporation (PhilHealth) have affected the provincial government’s ability to settle its obligations with dialysis service provider Nephroprime.

In a letter to Negros Occidental Governor Eugenio Jose Lacson, Nephroprime president Ma. Leila Magbanua said the company was forced to close due to its inability to pay suppliers, which resulted in the lack of critical medical supplies.

“We would like to emphasize that we have faithfully complied with our obligations under the MOA, including provision of all medical supplies, emergency medicines and medical equipment as required by PhilHealth. But to date, we have not been paid the amounts due,” Dr. Magbanua wrote on June 24.

Under a 2017 agreement between the provincial government, La Carlota City, and Nephroprime, the capitol is responsible for channeling PhilHealth payments and distributing income. Of the P2,600 per dialysis session, P550 is considered net income. Based on the agreement, 40% goes to the provincial government and 60% for Nephroprime.

But since July 1, 2024, according to Nephroprime, the capitol failed to pay over P58.8 million of its share despite demand letters.

On May 28, Nephroprime informed Lacson of its decision to cease operations effective June 30. Lacson, in a response dated June 16, accepted the notice.

“In view of your formal notice and overt act to cease operations, the Provincial Government of Negros Occidental will accede to your decision and will undertake the necessary steps to take over the operations of the DSBMDH dialysis unit in order to ensure uninterrupted dialysis services to the Negrense,” Lacson wrote.

He added that the province would pay Nephroprime, subject to government accounting and auditing procedures.

But as of mid-July, the provincial government has yet to resume operations at the dialysis unit, leaving dialysis patients in limbo.

One bottleneck is the failure of the provincial government to recruit Nephroprime’s renal technician and head nurse, both of whom reportedly declined offers to stay. The positions are critical to the operation of a dialysis facility due to the specialized skills and oversight required.

In a press briefing on July 7, Lacson said the government was installing a new filtration system and would reopen the facility within two weeks.

In the meantime, he offered transportation assistance to patients needing to travel to northern cities Silay or Cadiz for treatment. La Carlota is over 60 kilometers from Silay and more than 90 kilometers from Cadiz.

Nephroprime said it plans to take legal action, arguing that the provincial government’s failure to pay its contractual obligations amounts to breach of contract.

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Dr. Girlie Pinongan, chief of hospitals and concurrent provincial health officer, said on Thursday, July 17, the dispute between the Negros Occidental provincial government and Nephroprime stemmed from pending reimbursements from PhilHealth.

“Because of the delay, the province can’t pay Nephroprime’s share as well,” Pinongan said. “The provincial accounting office is now doing the computation. But I think it’s not P58 million. It’s maybe lower than that.”

Pinongan said could not say exactly how much PhilHealth owes the provincial government.

Governor Lacson did not respond to a message asking about exactly how much PhilHealth owes the province.

PhilHealth-Bacolod head Edgar Yocariza, however, said on Friday, July 18, that the state health insurer was up to date with its obligations to the capitol.

Rappler sought Pinongan’s comment on PhilHealth’s response, but she did not reply to messages as of posting time.

La Carlota City Mayor Jose Luis Jalandoni said he hoped the matter would be resolved quickly. “I hope the issue will now be resolved, and the province will have to continue the operations of a dialysis center at DSBMDH,” he told Rappler on Thursday.

In the meantime, Jalandoni said the city government has been forced to assist patients by providing transport to and from Bacolod for dialysis treatment. – Rappler.com