Council sees viability of Samar Island Medical Center

TACLOBAN CITY, Dec. 27 -- The Regional Development Council (RDC) has found the proposed PHP1.14-billion Samar Island Medical Center (SIMC) economically viable, citing “health benefits that exceeds the investment requirement”.

In a committee report, the National Economic and Development Authority (NEDA), the RDC’s secretariat, said there is a need for the project to be endorsed to the Department of Health (DOH) for future multi-year funding.

Ernesto Octaviano, NEDA Eastern Visayas chief economic development specialist, said in an interview Thursday that the hospital will incur negative cash flows during the first 10 years of providing services.

“However, if the provincial government of Samar will provide annual subsidy for 10 years, the medical center will be able to sustain its operation until it generates income starting 2028,” Octaviano said.

In an earlier interview, Samar Governor Sharee Ann Tan said the local government is committed to support the hospital’s operation since the central government has already committed to put up some of the capital outlay requirements and additional health workers.

The first phase of the hospital's construction is now ongoing with the use of the PHP150 million initial funds downloaded by the health department to Samar province early this year.

As proposed, the existing Samar Provincial Hospital in Catbalogan City in Samar will be called SIMC. It will operate as level two health facility with a 300-bed capacity and will be supervised by the provincial government.

The provincial hospital, at present, can only accommodate 100 patients. It is currently the core referral hospital of 24 towns and two cities in Samar. The province has a population of about 800,000.

The RDC endorsed the project on Dec. 3, subject to consideration of the following recommendations: the hospital should remain as level 2 facility, DOH assistance should be part of the provincial investment plan for health, identify manpower resources, and back the provincial government subsidy with resolution by the provincial board.

Level 2 facility hospital has such facilities as intensive care units and specialist doctors for gynecology and pediatric services.

Octaviano said there is no assurance of fund allocation for the project from DOH in 2019 since the maximum amount for cash-based budgeting allowed by the budget department in one year ranges from PHP100 million to PHP150 million. It is lower than the proposed funding requirement for next year. (SQM/PNA)