UST HOSPITAL has cut its “non-crucial” manpower amid heavy financial losses since the start of the Covid-19 pandemic.
Hospital medical director Dr. Marcellus Francis Ramirez said state-run Philippine Health Insurance Corp. also owed more than P180 million in expenses for patients in 2019.
“[P]ainful decisions were needed to be made. While the news around significantly highlights the health and medical impact of the pandemic, the huge economic and financial impact brought about by this crisis to all business establishments, most especially to healthcare institutions, is often overlooked,” Ramirez told the Varsitarian.
Earlier, Ramirez said some patients were discharged on promissory notes.
He said the retrenchment plan “was reviewed in detail by our Legal Counsel and after we have complied with all legal requirements for the same, such as the notification to the Department of Labor and Employment (DOLE) and the 30-day notice to the affected employees.”
“[W]e first implemented non-renewal of fixed term contracts and recently, retrenchment, which, based on our collective bargaining agreement (CBA), would be based on the principle of last in first out,” he said.
He pointed out that retrenchment is a “recognized valid and legal management measure and it remains as such even during the Covid 19 crisis.”
Ramirez said employees affected by the retrenchment measures would receive a 150-percent separation pay based on the hospital’s CBA, which was 50 percent higher than what the Labor Code provides.
Online labor protest on Labor Day
The Ugnayang Nagkakaisang Manggagawa–University of Santo Tomas (UNM–UST) protested what it said was the “wrongful termination” being implemented by the hospital management, supposedly in the guise of business losses.
It said USTH hospital workers remained committed to their work even after their pleas for additional benefits during the pandemic “fell on deaf ears.”
An employee from the Hospital affected by the retrenchment measures said he pleaded with the hospital administrators to keep his job, as looking for another job would not be possible amid the pandemic.
“Kahit na pakiramdam ko wala na ako magagawa sana talaga may maisip pang paraan,” the employee told the Varsitarian.
Statement from UST Hospital:
The UST Hospital was constrained to implement manpower reduction measures in order to minimize its expenses and to reduce the significant losses it had been sustaining due to the Covid 19 crisis. Since the start of the pandemic and the enhanced community quarantine (ECQ) and lockdown that followed, the overall hospital census went significantly down. Moreover, most of the patients admitted were CoVid patients. Ordinary and elective patients stayed away from most hospitals even up to now due to fear of possible Covid 19 infection. While the news around significantly highlights the health and medical impact of the pandemic, the huge economic and financial impact brought about by this crisis to all business establishments, most especially to healthcare institutions, is often overlooked. The huge cost brought about by our contingency measures to address the demands of the pandemic, which included cancellation of elective procedures and admissions to give way to the intensive care of CoVid patients, as well as the tremendous impact on our patient census, is taking a very serious toll on the hospital’s sustainability.
While Philhealth has instituted healthcare coverage of admitted CoVid patients, reimbursement is delayed by an average of 5-6 months. Currently the receivable of USTH from Philhealth stands at more than P180 million and counting.
Despite the foregoing, the hospital continues to operate and pay utilities, (electricity, water, and communications, etc.) services (security and janitorial services and waste management, etc), medications and supplies needed for patients, and for the salaries of employees most of whom are on leave.
Many of the employees also could not come to the hospital because of limited transportation while others filed for unused leaves. There were even some who were not allowed by their parents and family members to report for work.
We have no idea when our operations will return to normal and we are uncertain if we can actually fully operate within the year.
The new normal, as it is called and which we are gradually transitioning into, will not be an assurance that the hospital’s current manpower will still be the number needed to operate it. Painful decisions were needed to be made. In view of the enormous impact of the pandemic, USTH has to implement the right-sizing of its non-crucial(non-frontliner) manpower complement, in addition to other measures which included adjustment of operating hours and implementation of other cost efficiency measures.
We first implemented non-renewal of fixed term contracts and recently, retrenchment, which, based on our collective bargaining agreement (CBA), would be based on the principle of last in first out. The retrenchment was implemented after it was reviewed in detail by our Legal Counsel and after we have complied with all legal requirements for the same, such as the notification to the Department of Labor and Employment (DOLE) and the 30-day notice to the affected employees. Employees affected by the retrenchment measures will receive 150% separation pay based on our CBA, which is 50% higher than what the Labor Code provides. It must also be noted that retrenchment is a recognized valid and legal management measure and it remains as such even during the Covid 19 crisis. Thank you for allowing us to clarify about the matter.
Marcellus Francis L. Ramirez, MD
